{kanada_flagge} On the occasion of today’s release of the Maiden Resource, we would like to raise a toast to Group Ten (TSXV: PGE; FRA: 5D32), ”Welcome to the Club!” As of now it is official and proven what astute observers already recognized: the Stillwater West project has an enormous mineral endowment that will only grow from today. According to the polymetallic nature of the deposit, the resource includes 2.4 million ounces of 4E (platinum, palladium, rhodium and gold) and, on top of that, 1.1 billion pounds of nickel, copper and cobalt. There is a considerable amount of high-demand metals in the 157 million tons of ore, including: 694 million pounds of class 1 nickel, 247 million pounds of copper, and more than 69 million pounds of cobalt.
These behemoths are less common and less well understood than gold projects. That’s the only way to explain why Group Ten is stuck at a stock market value of about CAD 50 million, despite its substantial resource. If the resource were gold equivalent, the valuation would certainly be in completely different dimensions. One could almost go so far as to say that the comparatively low valuation stems from laziness of thought among mining exploration investors.
But let’s get back to the facts: Looked at closely, the 2021 resource is comprised of five starter deposits lined up along an 8.7 km portion of the 32-kilometer-long project. Group Ten inherited most of the data upon which the resource was based as part of the initial property acquisition and these holes were drilled over the past decades for a variety of reasons – BUT no one had Stillwater West as a whole in mind. Group Ten is the first company to consistently focus on the polymetallic nature of the deposits, following the example of Bushveld in South Africa and particularly the Platreef where such monstrous deposits as Ivanhoe’s Flatreef and Anglo’s Mogolakwena reside. If “Platreef in Montana” has been only a working hypothesis to date, it becomes fully apparent in the resource now released.
Group Ten, in the spirit of economy, has evaluated the extensive archive of drill results and supplemented them with some mandatory drilling in such a way that the present resource could be published. It is almost a miracle that this has resulted in a considerable resource at the first go, because the disparate drill holes were not originally aimed at a resource at all, nor optimized for developing a bulk tonnage project.
Strictly speaking, a resource is a bureaucratic or regulatory act. But there’s also a lot of math and statistics involved. The way Group Ten has prepared its numbers is again exemplary and transparent. The lower and higher cut off grade variations and even a sensitivity comparison make for easy reading, especially for professionals (for whom this report is probably primarily intended). It also provides some clues as to varying potential development scenarios that are likely to be explored.
By referring to the results of this year’s drilling campaign, Group Ten makes it clear that the resource now published is only a snapshot. To understand this, one need only look at the IP record of the entire complex. All the drill holes that will be (and have been) drilled this year will soon add to this resource calculation. What is particularly exciting is that it is only this season that Group Ten has been able to drill for the first time where its own IP surveys have provided the best signatures. IP has already proven itself as a tool in the past. In this respect, the new results could offer some surprises.
We stick to our thesis: Group Ten is on its way to becoming a real heavyweight. Those who do not yet understand this today will experience it in the coming years. The foundation has been laid.
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