Two big achievements for Sun Metals in December

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In his first Discovery Watch interview of 2019, John Kaiser of Kaiser Research Online suggests that Golden Triangle driller Sun Metals (Sunny; SUNM) achieved two important accomplishments last month. Leading up to December of last year, Mr. Kaiser believes the company demonstrated via recent exploration activities that its Stardust project likely has a new dimension of higher-grade mineralization than the already outlined Canyon Creek resource. 

The big excitement last fall occurred when the company intersected in a single hole two substantial intervals of high copper-gold-silver-zinc grades in the $300 to $500 per tonne value range. But, and it's a big but, the associated geometry of this mineralization is not yet understood explains Mr. Kaiser:

They have gone through what that they think is a fault, they are in deeper than they've been before. There is lots of limestone there, so there is lots of potential running room. But, did they manage to drill some tabular zone on the end and get 50, 60 metres of very high-grade mineralization and when you step away from it you get nothing? We do not yet know that.

Mr. Kaiser reports that the company hopes to answer the question this year with a special type of precision drilling.

Stardust project hole 421 drilled last fall (click for larger)

Setting the stage for the New Year were two important developments in December. First, to gain 100% ownership of the project Sun Metals cut a deal with option writer Lorraine Copper (LLC) which fixes the number of shares to be issued to Lorraine (32,029,315 shares according to a December 18th press release). Secondly, Sum Metals did a $5.16 million flow through financing which ended up with Teck Resources (Sunny; TECK) as the end acquirer of the associated 12.5 million shares.

Mr. Kaiser believes this is a significant endorsement, especially given the concern that maybe Sun Metals simply scored a lucky hit with hole 421 and that there is not much else there. However, Mr. Kaiser goes on to muse:

The context of this Stardust play suggests that this a very big system that has had a lot of fluid flow in it

It should add up to an exciting year of drilling on the project, according to Kaiser who is following the stock as one his favourites going into the New Year.

In the broadcast, Mr. Kaiser also reviews recent news from Scandium International Mining (SCY) and Wolfden Resources (WLF). For the full interview, click here.

INK Edge outlook ranking categories (Sunny, Mostly Sunny, Mixed, Cloudy, Rainy) are designed to identify groups of stocks that have the potential to out- or under-perform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations. For background on our INK Edge outlook, please visit our FAQ #5 at INKResearch.com. Disclosure: one or more INK Research employees holds SUNM and LLC.

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