I’m opening a thread for this now. I would hope for constructive discussion about the possibilities of this junior miner. My own mining expertise is limited. Those more familiar with the matter are very welcome to share their thoughts.
Starr Peak Mining, formerly Starr Peak Exploration, is a (TSXV: STE.VN) Canadian junior mining company that made a strategically correct move by successfully acquiring the rights to the New Métal area. New Métal is located right next to Amex Exploration’s (AMEX) claim (Perron Property) in the province of Quebec. Amex’s claim is located right next to the old Normetall mine, and their drilling results from Perron were very promising, making AMEX one of the best-performing stocks on the TSX in 2019. Amex’s drilling results hit a vein that continued to expand towards Starr Peak’s claim. Just as the mining industry was marveling at Starr Peak’s successful claim acquisition, news came that Starr Peak had also successfully claimed the rights to the old Normetall mine. Starr Peak’s stock rose sharply and settled around 2 CAD, awaiting further news. The results of the first drillings were somewhat surprising - there was a good amount of gold in the results, and the deposit appears large in that regard. What made the results surprising was the high proportion of other precious metals. After the planned winter drillings, Starr Peak first added one more drilling unit to the area, and on May 21st, an announcement came about a third drilling unit. Instead of the planned 5,000 meters, 20,000 meters of drilling will be done.
Starr Peak has 30 million CAD in cash for drilling, and the company’s market cap is currently approximately 200 million CAD. Below are links I found on the topic, which I hope readers will review before commenting.
Starr Peak’s stock price has risen over 100% YTD and is currently 3.88 CAD. Trading volume has also steadily increased, being over 800,000 on Friday, May 21, 2021.
The Canadian forum is speculating whether the high zinc content in the drillings could turn into more copper-rich deeper down. This happened with Normetall.
Currently, with the Canadian exchange closed, there’s a significant volume and over 5% rise on the OTC side.
Thanks @Perttu_Hamalainen for starting this company thread and for your work on Oroco. I don’t have much competence or expertise to evaluate the profitability, risks, or future of a mining company, so in these matters, I rely on the news and opinions shared by others on the Inderes forum. Of course, I’ve learned a lot, but some messages are still Hebrew to me. However, that hasn’t stopped me from investing in Oroco or this company, albeit with a very small stake.
I got excited about this company based on the oilprice article you shared in the Oroco thread, which very well explained what Amex had managed to do in the same area in Canada. I hope I interpreted the news correctly that Starr Peak, like a parasite, bought land and started excavations right next to Amex’s excavation, hoping that Amex’s findings would continue there. The company also brought in Amex’s founder and chairman as its chief geologist. I don’t know if a merger between Amex and Starr Peak could be possible at some point, who knows.
And based on the drillings already published, the results have been encouraging (this understanding of mine is based on the superlatives I’ve read in the news). According to the oilprice news, new results would also be coming in the coming days. I, for one, will follow the company’s excavation progress with interest, and if I come across any new news, I will share it here as well.
These junior miners are a bit challenging: 99% of them just squander investors’ money. However, a small portion of them succeed in their projects, and so far Starr Peak has done so. I understand enough about these drilling results to know that not only ore grades matter, but also, to a great extent, the size of the deposit/vein. High grades don’t mean much if the vein is very thin. Starr Peak’s drilling results suggest that high grades extend over a long distance. The market cap also indicates that this has not yet been valued very highly despite the discoveries. I haven’t found any calculations on the size of the ore reserves anywhere, and it would be absolutely great if someone truly dedicated to the matter could make some calculations - to prove my statement right or wrong.
I also have a few junior mining companies in my portfolio, so I looked into this a bit. In my opinion, the biggest company-specific risk is precisely the lack of a recent NI43-101 compliant technical report, and the estimates of ore reserves are based on historical assessments.
The drilling results do look promising, and the team and location are good. If the company hits that “The” golden vein, the probability of the project being bought out by a larger mining company with a good premium increases significantly.
Completely agree!
In Canada alone, there are hundreds of listed small mining companies with at least on paper promising projects underway (it’s strange, by the way, that whenever precious metal prices enter a bull market, new juniors start popping up like mushrooms after rain :)).
Without taking a stand on whether Starr Peak Mining is a good or bad investment, I can say that I don’t have the expertise (or the money) to speculate on all promising-sounding juniors. Instead, I invest in those that already have some facts to present, proving that they truly hold significant mineral resources… preferably with a PFS or PEA done, allowing for some valuation of the company. The largest possible speculative returns will likely go unachieved by being so cautious, but on the other hand, the risk of losing capital also significantly decreases when not buying a pig in a poke, so to speak.
Sorry if I went a bit off-topic regarding this specific company, but perhaps it’s good to remind fellow speculators that not everything that glitters is gold… The Lassonde curve is, in my opinion, a good example of the roller coaster ride junior stock prices can take at different stages of development.
Exactly. I only have certain assumptions about this in addition to the drilling results. Everyone draws their own conclusions from these, of course. Increasing the number of drilling units from one to three (obviously an expensive endeavor). Successful recruitments (from what little I’ve looked into those names). This was recent and would seem somewhat pointless unless the team itself at least had faith in the future. Increasing drilling meters from 5,000 to 20,000. And indeed, I’m pretty much on the same page regarding these expectations. I personally consider these risky and uncertain, even if studies have been done on their reserves. That’s why I only have a few juniors left in my portfolio. They’re there with the idea of HR & HR (High Risk & High Reward).
It’s also important to remember that the development of the underlying commodity price is probably the biggest driver of juniors’ stock prices in the short term.
The price of gold is on a strong upward trend again, and my wild guess is that we will see new ATH (all-time high) figures within the next year or two… if this happens, it will (with leverage) boost the stock prices of almost all juniors whose company presentation mentions the words ‘gold’ or ‘mining’, regardless of how good or bad the company is.
Unfortunately, the same leverage also works in the other direction… while the price of gold fell by just under 20% from its August 2020 highs to its March 2021 lows, during the same period, GDXJ (junior ETF) fell by ~35%, and individually, even wilder declines were seen, with the most speculated juniors falling by as much as -80%.
This is one reason why my own portfolio, with the exception of Oroco, no longer holds gold-heavy or single-metal focused investments. In this case, other metals are very strongly present in the samples.
Let’s hype it up here, as the thread hasn’t gotten very popular yet. ATH again today. It did that yesterday too. Nice to see how high we’ll climb here. Let’s enjoy the ride.
Starr Peak Mining Ltd. (“Starr Peak” or the “Company”) (TSX-V: STE) (OTC: STRPF) is pleased to announce that it has closed a strategic institutional private placement of Flow-Through Units at $3.60 per Unit. The Company has issued 1,043,333 Units at $3.60 per Unit for gross proceeds of $3,755,998.80. Each Unit consists of one flow-through common share and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder to acquire an additional common share of the Company at a price of $4.50 per share for a period of 18 months from closing.
The proceeds from the financing will be used for drilling and exploration work on the Company’s Quebec properties. After today’s closing, Starr Peak’s current cash position is currently in excess of $5.3 million and currently has 37,599,978 shares issued and outstanding
Starr Peakin analyysit viivästyneet koska tutkimuslaitoksella on ruuhkaa, näin on eri vahvistamattomat lähteet kertoneet. Lisäksi ilmeisesti shorttihyökkäys.
Anson short attack but going back up
Anson are caught upside down on Starr Peak. This past weeks share decline has been nothing more than a deliberate push down by Anson in an attempt to try to cover. This is exactly the thing that is wrong with this exchange. Well guess what Anson? You shorted the wrong stock - Starr Peak has a major discovery and every drill hole is adding tonnage. See you at $5
