The value of gold reached its bottom in the late summer and early fall of 1999. Resource equities broadly, as gauged by the XAU, bottomed out in November of 2000. Silver plummeted to its lowest point in November 2001. As these benchmarks turned the corner, capital inflows into the sector surged between 2000 and 2008.
Every unemployed cabbie in Vancouver or an individual who had managed a drilling team decided they might as well carve out a piece of the action. Over a thousand new speculative ventures were established. Their overriding aim was to stake a claim on a patch of moose habitat and extract funds from investors for as long as possible.
A handful still survive. The majority perished and took all that investor capital with them to financial heaven. I used to quip that 70% of junior resource firms were vanity projects with no prospect of ever bringing a genuine venture to fruition. If I was mistaken, it was because I was overly optimistic.
The previous generation has passed on. If you were among the handful of investors who attended a gold conference a decade ago, everyone was long in the tooth. For those who still had any locks left, they were entirely silver.
The landscape has shifted, and a fresh, youthful cohort has realized that there are only three avenues to generate prosperity. You can cultivate it. You can fabricate it, or you can extract it.
The caliber of ventures and leadership that I have encountered recently vastly outshines any era in the last quarter-century. Of course, gold at US$5,000 per ounce, silver at US$121 per ounce, and copper at US$6 per pound garners plenty of attention. But if you ponder it, those figures hint that hyperinflation is on the horizon. An investor can put their money in paper, Bitcoin, or tangible assets. Many are choosing tangible assets. I believe we are poised to enter a golden epoch of mining unseen since the 1800s.
Someone approached me recently with an expansive venture situated in the heart of the Vicuña Region in Argentina. Now, few individuals truly grasp this, but Argentina is open for business. Like neighboring Bolivia, voters have spurned failed socialism and chosen to be governed by those who comprehend commerce. Last year, Argentina was the sole nation in South or Central America to actually post a budget surplus.
Sendero Resources Corp. (SEND:TSX.V) wholly owns 120 Km2 in the Vicuña Region, along with options on an additional 91.7 Km2.
Situated adjacent to the Caserones mining operation owned by Lundin Mining Corp. (LUN:TSX; LUNMF:OTCMKTS), Sendero's Penas Negras project lies just 21 Km northeast on trend of the world-renowned Josemaria and Filo del Sol projects also run by Lundin Mining in a joint venture with BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK).
The Vicuña JV on Josemaria and Filo del Sol between Lundin Mining and BHP boasts a 43-101 resource of 38 Mt of copper, along with 81 Moz of gold and 1,467 Moz of silver.
Over the past three decades, the Penas Negras project has been explored by a range of companies, including Anglo American Plc (AAUK:OTCQX; AAL:LSE), Vale S.A. (VALE:NYSE), Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE),Eldorado Gold Corp. (ELD:TSX; EGO:NYSE), and Solitaire Minerals (SLT:TSX.V). Nearly 16,000 meters of drilling across 80 holes have been completed. Historical outcomes have included 354 meters of 0.53 g/t AuEq, 68 meters of 1.11 g/t AuEq, and 78 meters of 1.09 g/t AuEq.
The company boasts a particularly robust technical squad, but its true strength may reside in its strategic backers led by Peter Marrone. Peter, of course, just unloaded Allied Gold Corp. (AAUC:TSX; AAUCF:OTCQX) for a CA$5.5 billion cash bid. He didn't pour millions into Sendero to watch it evolve into a CA$500 million firm. With his track record, he is aiming for the stars, and he is in the right neighborhood to pull it off.
Sendero has filled its coffers and has roughly CA$5 million on hand to bankroll field exploration and a fully permitted drill program for 2026. With a minuscule 26.5 million shares outstanding, Sendero currently commands a market cap of about CA$42 million, significantly less expensive than its junior peers in the vicinity. In essence, the project is outstanding, the company enjoys incredible strategic supporters, and has cash in the bank. What's not to adore?
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- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sendero Resources Corp.
- Bob Moriarty: I, or members of my immediate household or family, own securities of: Sendero Resources Corp. My company has a financial relationship with: Sendero Resources Corp. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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