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Explorer to Update Resource Report in 2022
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The Quick Take

  • Couloir Capital has a "Buy" rating for Group Ten Metals Inc. and updated its fair value price to CA$0.61/share.
  • Group Ten is proceeding with extensive exploration at its Stillwater West Property and has achieved significant accomplishments since Couloir initiated coverage last year.
  • The firm's Stillwater West Property is estimated to host 1.56 Blb Ni eq or 6.07 Moz Pd eq.
  • The company is awaiting final assay results from its 14-hole, 2021 drill program.
  • Substantial maiden resource forms cornerstone for near-term resource expansions and upgrades.
  • The company optioned its Black Lake-Drayton gold project providing it with a zero-cost minority interest in an asset adjacent to a multi-million-ounce gold complex.
  • Global M&A activity for nickel and PGM miners is heating up, perhaps signaling the beginning of a super-cycle.

In a Jan. 21 research note, Couloir Capital Ltd. commented that diversified mineral explorer Group Ten Metals Inc.'s (PGE:TSX; PGEZF:OTCQB; 5D32:FSE) substantial maiden resource report provides a solid foundation for additional near-term resource expansions and upgrades.

The report explained that the platinum group elements, precious and critical metals company is continuing with its extensive exploration efforts at its Stillwater West Property in Montana and has achieved numerous milestones since Couloir first initiated coverage on the company in early 2021. Notably, Group Ten has managed to advance the Stillwater West Nickel-PGM project from an exploratory property with an undefined resource to its maiden NI 43-101 resource report.

The maiden resource report found that the property is highly prospective for nickel and platinum group metals (PGMs). According to the report, "the property has an inferred resource of 1.56 Blb Ni eq or 6.07 Moz Pd eq, with average grades of 0.45% Ni eq or 1.20 g/t Pd eq." There are an estimated 2.44 million ounces of PGMs and precious metals, and 1.11 billion pounds of base metals believed to be in the ground at Stillwater West.

The company is now waiting to receive the assay results from 14 holes drilled during its 2021 drill program. The firm plans to incorporate those results into an updated resource report in 2022.

The firm entered into an agreement to option its Black Lake-Drayton prospective gold property to Heritage Mining.

Couloir remarked that "that globally M&A for nickel and PGM miners has begun to heat up, which we believe may be the beginning of a super-cycle as major players in the mining industry seek to reposition themselves as suppliers of the metals of the future economy (including nickel and PGMs)."

The company has now completed 5,138 meters of its 2021 10,000-meter resource expansion drill program. The drilling is expected to continue in Q2/22.

According to Couloir Capital, Group Ten has a large number of options outstanding that if exercised would bring in around $12.42 million that would provide reserve capital.

The Couloir report noted that its valuation estimates for Group Ten might change favorably if additional assays from the company's 2021 drilling program have a positive impact and end up being incorporated in a 2022 resource update. Other potential positive catalyst could possibly come from future developments at the firm's Black Lake-Drayton Project and its option agreement with Heritage.

Couloir said it is maintaining its "Buy" rating and updating its fair value price valuation for Group Ten Metals Inc. from CA$0.49/share to CA$0.61/share.

Group Ten Metals Inc. shares trade on the TSX Venture Exchange under the symbol "PGE" and last closed for trading at CA$0.355 on Friday, Jan. 28, 2022. The company's shares also trade under the ticker symbol "PGEZF" on the OTCQB market.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Group Ten Metals Inc. Click here for important disclosures about sponsor fees.
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Disclosures for Couloir Capital, Group Ten Metals Inc., Jan. 21, 2022

This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report accurately reflects his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations.
Couloir Capital Ltd. is affiliated Couloir Capital Securities Ltd., an Exempt Market Dealer. They shall be referred to interchangeable as Couloir Capital herein. Part of Couloir Capital's business is to connect mining companies with suitable investors that qualify under available regulatory exemptions. Couloir Capital, its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Couloir Capital may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Couloir Capital has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not consider the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before making an investment. Couloir Capital will not treat recipients of this document as clients by virtue of having viewed this document.
Company specific disclosures, if any, are below:
1. In the last 12 months, Couloir Capital has been retained under a service or advisory agreement by the subject issuer.
2. In the last 12 months, Couloir Capital has received compensation for investment banking services.
3. Couloir Capital or a member of the Couloir Capital team or household, has a long position in the shares and/or the options of the subject issuer.

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