These are very positive results, IMO, although I just admit that with all the pre-release price movements, it was hard to know what was a reasonable expectation...
For me, the key points are these:
- "The best result was 8 metres at 3.7% Cu from 32 metres down‐hole within a broad zone of 25 metres at 1.44% Cu."
- The company states that this discovery in this North Lode is potential amenable to open pit mining
- It is entirely out of the existing JORC resource
- AND, they may have actually missed the mark with some of the drilling - "the high grade core of the lode is possibly plunging at a shallower angle than anticipated (ie: external to the JV tenement) and that the holes drilled MAY HAVE INTERCPETED THE LOWER EDGE OF THE LODE." (my emphasis)
SMD still trades at a small mcap and EV, and with metals markets recovering, sentiment bodes well for copper producers and explorers alike. (Not to mention the considerable value in the free-carried Cu/Mo JV with Kings)
Y
SMD Price at posting:
22.5¢ Sentiment: LT Buy Disclosure: Held
