VR Resources Drills 881 Meters of Continuous Polymetallic Moly-Copper-Tungsten-Silver Mineralization At New Boston Project, Nevada
Contributed Opinion

Important Disclosures:

1. VR Resources Ltd. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship. 
2. 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 VR Resources Ltd.
3. Robert Sinn: I, or members of my immediate household or family, own securities of: VR Resources Ltd. My company has a financial relationship with: None. 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.
4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
5.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Robert Sinn Disclosures

Disclosure: Author owns VRR.V shares at the time of publishing and may choose to buy or sell at any time without notice.

DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This article is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SedarPlus.ca for important risk disclosures. It’s your money and your responsibility.

In last week's news release, VR Resources Ltd. (VRR:TSXV; VRRCF:OTCQB; 5VR:FWB) delivered 317 meters grading 0.11% molybdenum, 0.04% copper, 0.02% tungsten, and 1.5 g/t silver beginning from surface in drill hole NB26-003 at VR's flagship New Boston Molybdenum-Copper-Tungsten Porphyry Project in west-central Nevada.

This drill intercept includes a very impressive molybdenum and tungsten interval over 84 meters beginning at 40 meters downhole (1.78% CuEq over 84 meters including 0.18% Moly).

Additionally, hole NB26-003 made a new discovery of a mineralized diorite porphyry intrusion beginning at 604 meters downhole.

The diorite porphyry is sulfide-laden, as disseminated grains and sinuous sulfide veinlets.

The 31-meter interval beginning at 610m returned 0.98% CuEq, including local marble breccia zones, with up to 1.58% MoS₂ and 0.4% Cu in one-meter sample intervals in the dyke interior, and 0.5% Cu, and 0.18% MoS_2, and 11 g/t Ag for 1.52% CuEq over one meter at the lower contact.

I encourage readers to review the full-length news release, including drill core photos HERE.

I had the opportunity to connect with VRR CEO Michael Gunning over the weekend, producing a 72-minute interview that covered all the relevant details from New Boston and hole NB26-003, including what's next for VR at New Boston

Here are my key takeaways from the conversation with Gunning, including my speculation as to what's next:

• VR has already permitted a number of drill pads (see dots on plan map in news release) around the Jeep Mine Area, and Gunning knows exactly where he will put the next 5-6 drill holes at New Boston.

• Regarding the next phase at New Boston, Gunning aims to demonstrate that drill hole NB26-003 is the first modern evidence of a very large system. The objective of the upcoming drill program is to confirm the continuity of the mineralization over a kilometer+ strike extent, within a vertically extensive system containing molybdenum, copper, tungsten, and silver.

• The top 300 meters of hole NB26-003 contain economic-grade molybdenum and tungsten, with some copper and silver credits.

• The 12 mV/v IP chargeability envelope shown below is roughly 1,000 meters across, and NB26-003 is the only deep hole with complete mineral data in that volume that VR is aware of.

• Based on the new results from NB26-003, VR will re-assay the pulps from NB24-002 using the sodium peroxide fusion method in order to determine an accurate polymetallic grade including Mo, W and Zn, in addition to Cu and Ag—hole 24-002 is ~2,000 meters from 26-003 so this reassaying has the potential to deliver an economically significant result that could have major implications for the scale of the volume of mineralization at New Boston.

• Conoco's 1979 technical report on the New Boston Project (Mineral County, Nevada) produced a 3.14 billion-ton geological model of the mineralized sheeted-vein system exposed at surface. The model covered a strike length of about 6,900 ft (2.1 kilometers) and explicitly excluded a central porphyry stock that Conoco inferred but never located or drill-tested. Exploration ended in 1981 after the commodities collapse, so the figure remained a conceptual geological volume rather than a formal reserve or resource estimate with contained molybdenum metal.

• Conoco's model, combined with the mineralized surface footprint, offers a great deal of encouragement with regard to the scale potential of the project.

• Please intently focus on what Mike says regarding the mineralized diorite porphyry intrusion beginning at roughly the 16:00 mark in the interview:

"This interval at 610 is the start of where you, as a geologist, are starting to think this hole is actually starting to look better as we get deeper.

The tungsten is strong at the top of the hole, and we can talk about why that interval is important for the strike length continuity at surface. But this interval at 610, from the nature of this intrusion, the strengthening of copper mineralization, and the increasing temperature of the alteration, is where, from a straight polymetallic porphyry point of view, this hole actually starts to look more interesting.

And I think Robert, if I can finish here by saying the interval, you can see a terribly high-grade skarn replacement zone. This is the interval over a couple of meters, and over a 1-meter sample, which is carrying up to 830 grams/tonne silver, up to 7% copper, 2.3% tungsten, I believe. You can see how it's not a coincidence that the high-grade skarn replacement zone is at the very upper end of the alteration aureole around this mafic intrusion. So you can see how much is going on around this new intrusion.

And then let me just leave with the carrot of what about the possibility, Robert, that this diorite porphyry phase is a sill or a dyke that's about 30 meters, including the marble breccia. What if it's connected to a diorite porphyry stock? And you could actually follow this dyke or this interval to a larger porphyry stock that is carrying this kind of grade?

That's the other angle as to why you would get excited about the angle that this is actually the most significant part of this discovery, is what if this sill or dyke is leading you to a porphyry stock of volume away from this drill hole. So that's my thinking ... you clipped 31 meters of something that could be potentially much larger and potentially actually be higher grade."

So what's next for VR at New Boston? Watch the interview for Mike's answer to this question.

I'll summarize what I believe will unfold over the next couple of months. Some warrants are already beginning to get exercised. That gives VR plenty of money to be able to sign a new drilling contract and get a drill rig to New Boston by early October. However, we don't want to only drill 1-2 holes in this next phase of drilling. Mr. Market wants to see a much larger drill program that will be able to test the full extent of the large IP anomaly at the Jeep Mine Target.

I believe we are likely to see a private placement announced within the next 1-2 weeks. Perhaps VR will even be able to attract a strategic investor (think major mining firm) with the latest drill result.

However, that remains to be seen.

I would like to see Gunning raise at least CA$5 million, and preferably without issuing any additional warrants. It's possible that VR could raise as much as CA$8 million, but I don't believe that's necessary at this point unless the terms are extremely favorable.

After last week's ~400% explosion in record trading volume, there is no doubt that VRR's chart is 'overbought':

VR Resources (Daily)

But we must remember, in a genuine Bull Market Adjustment Trade, we should expect the stock to remain in an overbought condition for several weeks, sometimes for up to two or three months.

If we use the Hercules Metals Corp. (BADEF:OTCMKTS; BIG:TSXV) chart from 2023 as a reasonable analog, everything depends upon the terms of any future financing and the speed with which VR can get a drill rig back to New Boston.

Hercules Metals (August to November 2023)

Given VR's relatively low current valuation, there is the potential for a lot more upside once the market is confident that the company is well capitalized and a drill rig is on the way.

On a fully diluted basis at CA$0.44 per share on the TSX-V, VRR has a CA$31 million market cap (US$23 million)—if all the warrants were to be exercised, it would bring in roughly CA$6 million to the company's treasury.

Recently, we've seen companies with a lot less than VR (in terms of quality of drill results) trade to CA$50 million or CA$60 million market caps.

I have been a buyer of VRR shares over the last few trading sessions.

Let's see what happens next.