exploration-stage properties are highly prospective, based on their location and results of historic and recent grab sampling and drilling, reported Taylor Combaluzier, Red Cloud Securities analyst, in a September 28 research note following a site visit.
"We came away from our visit with a new appreciation for the untapped potential of Blackwolf's projects, along with a better grasp of their connection to prolific past and current mining operations in the Golden Triangle," Combaluzier wrote.
During the excursion, led by Blackwolf's executive chairman Robert McLeod, Red Cloud saw the Hyder properties (Texas Creek, Cantoo, Rooster, Mineral Hill, and Casey) by helicopter and set down at the Harry project. All of these are near Hyder, Alaska, and Stewart, British Columbia (B.C.).
Impressive Potential Return
Subsequently, the financial services firm reiterated its CA$0.55 per share target price on the Canadian mineral explorer-developer, currently trading at about CA$0.23 per share, Combaluzier noted. The difference between these two prices reflects a significant potential return for investors of 139%.
'"Successful exploration at Cantoo and Harry could potentially help drive the stock price higher," the analyst purported.
Blackwolf remains a Buy.
Location, Location, Location
In this report, Combaluzier presented the key takeaways from the site visit.
The location alone of Blackwolf's properties suggests they could be rife with mineralization given they are on the Alaskan side of the Golden Triangle, the Canadian side of which is a prolific historic mining district, purported Combaluzier. The latter is home to numerous mines, including Castle Resources' Granduc, Scottie Resources' Scottie, and Ascot's Premier. The Alaskan side is mostly underexplored, its potential "largely untapped."
On recent drilling at Cantoo, Blackwolf encountered mineralization consistent with a porphyry system, and assays are pending, Combaluzier relayed. Because of Cantoo's proximity to the Premier mine, Cantoo may be part of Premier's mineralized system. The mineralization at Cantoo may be a telescoping porphyry feeder of the high-grade Premier-Big Missouri system that is geologically similar to Seabridge Gold's KSM-Snowfield.
Combaluzier indicated that Blackwolf plans to concentrate on advancing its Hyder properties, putting its Niblack copper-gold-zinc project on hold until copper prices increase.
Poised for Growth
In the Alaskan side of the Golden Triangle, melting glacial ice continues to expose untested areas, wrote Combaluzier, and Blackwolf is well-positioned to capitalize on them.
For instance, the management team has extensive knowledge about the local geography, an advantage when it comes to making discoveries.
Good Prospects at Harry
At Blackwolf's Harry project, comprised of three contiguous claims, sulfide mineralization, specifically sphalerite, galena, chalcopyrite, copper oxides, gold, and pyrite, was visible, added Combaluzier. Based on this, plus the fact mineralization was shown historically, Red Cloud believes the results of recent initial drilling at Harry will be positive.
Combaluzier pointed out that historic grab sampling in Harry's Swan zone returned high-grade precious metals, for example, up to 285.4 grams per ton gold (285.4 g/t Au) and 1,872 g/t silver (Ag). Similarly, recent drilling at the project encountered intercepts, including 1,833 g/t silver equivalent (Ag eq) over 9.26 meters (9.26m) and 1,437 g/t Ag eq over 15.64m. To date, 12 mineralized zones have been identified at the project.
What To Watch For
Blackwolf has events expected this year that could move up its stock price. They include the release of drill results from Cantoo and from Harry.
Also anticipated are the results of processing studies being done regarding a potential processing facility in Kitsault, B.C.
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- Blackwolf Copper & Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper & Gold Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Red Cloud Securities, Blackwolf Copper & Gold Ltd., September 28, 2023
Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., 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, Red Cloud Securities Inc. 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. Red Cloud Securities Inc. 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 take into account 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 investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
Company Specific Disclosure Details
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
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Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.