When silver broke down below $21 an ounce it warned that liquidity was going to leave the small cap exploration and junior mining stocks, and almost all of them have been in decline ever since. Now commodities appear to be coming alive and silver is poised to make an attempt to close above $21 an ounce. If that happens it will suggest that an end of the year metals rally is beginning and bring new interest to the junior mining sector.
At the same time, the recent decline in this sector has presented deep value opportunities. One such play now on my radar screen is Emergent Metals, which trades as EMR on the Toronto Stock Exchange and as EGMCF on the US OTC. The stock has a market cap of only $4 million USD. In metals bull rallies most junior mining stocks get to market caps of $25 million USD.
Take a look at the chart.
As you can see, shares of Emergent Metals took a hit this summer and then formed a base, which it launched a big rally up to 30 cents a share on. It has been consolidating in a trading range since July, building a range to breakout again and rally from, during a time in which most junior mining stocks simply continued to go ever lower. The company just closed the first tranche of an institutional private placement for 20 cents a share, which suggests that this is a solid smart money floor in the stock. The company plans to use the money for exploration of Emergent’s properties in Quebec and Nevada and general working capital.
Emergent used to be known as Emgold, but changed its name back in March along with the completion of a share consolidation. It’s a gold and base metal exploration company focused on Nevada and Quebec. The Company’s strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them through sale, joint ventures, option, royalty, and other transactions to create value for our shareholders (acquisition and divestiture (A&D) business model).
In Nevada, Emergent’s Golden Arrow Property, the core asset of the Company, is an advanced stage gold and silver property with a well-defined measured and indicated resource of:
M&I – 12.2M tons at 0.024 opt Au and 0.33 opt silver containing 296,500 oz. Au and 4.0M oz. Ag
I – 2.8 M tons at 0.013 opt Au and 0.33 opt Ag containing 50,400 oz. Au and 1.2M oz. Ag
With this property it has an Environmental Assessment and Plan of Operations in place to allow a major drill program with the goal of increasing the resource size to 0.5M t0 1 M which would have potential to support an open pit heap leach operation.
New York Canyon is a base metal property subject to an Earn-in with Option to Joint Venture Agreement with Kennecott Exploration, a subsidiary of Rio Tinto Plc (NYSE:RIO).
The Mindora Property is a gold, silver, and base metal property located twelve miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, operators of the adjacent Rawhide Mine.
In Quebec, the Casa South Property, is an early-stage gold property adjacent to Hecla Mining Corporation’s (NYSE:HL) operating Casa Berardi Mine. The East-West Property is a gold property adjacent to and on strike with Wesdome Gold Mine Ltd.’s (TSX:WDO) Kiena Complex and O3 Mining Corporation’s (TSX:OIII) Malarctic Property (Marban Project). The Trecesson Property is located about 50 km north of the Val d’Or mining camp. The company also has a 1% NSR in the Troilus North Property, part of the Troilus Mine Property being explored by Troilus Gold Corporation (TSX:TLG).
You can view the company’s complete corporate PDF presentation here.
Go EMR!
Go EGMCF!
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-Mike
Disclosure: Mike Swanson is the President of Timingwallstreet, Inc. Because Emergent Metals is a small cap stock with a market cap of less than $100 million he has put himself on a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post. He currently does not own a position in the stock. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Emergent Metals. This third party paid Timingwallstreet Inc., $13,00 to produce and disseminate this and other similar articles and send traffic to them through paid advertising online campaigns within 30 days beginning November 7, 2022. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.
