JRI This Week #37: Gas, Gold and Glory
Two interviews recorded - a Canadian gold developer in BC and the other an Aussie Nat Gas explorer in Zimbabwe, plus an article digging into the history of discovery in the famous Vicuña district.
tl;dr:
Three pieces due out this week. I’ve got a recording of a live fireside chat from Scott Macmillan of Invictus Energy, as well as a drill campaign review for Thesis Gold’s 2023 Ranch Project with CEO Ewan Webster. In addition to that, I have a “history of discovery”-themed article I want to get out exploring the Filo del Sol discovery’s early days in the now world-famous Vicuña district. Sendero Resources looks like it might have something at its La Ollita target and I thought it would be a useful exercise to demonstrate the power of making a true, new discovery in the market.
Tickers Mentioned: IVZ.AX; SEND.V; TAU.V
Short and sweet to queue up the next week of work for me. I’ve got two interviews plus a research article I plan to get out before Sunday coffee. The trip to Suriname looks (mid-April is already fast approaching) and there’s a lot I would like to get out before I disappear into the Amazon for a week.
Anyway, here’s what to expect out this week (roughly in anticipated order):
1. Invictus Energy: Fireside Chat Recording
I discussed Invictus Energy in a recent “steel your courage!” sort of update, so start there if you need a bit of a primer. But Scott Macmillan has been coming on my show from very early days to give his very large, very passionate fanbase investor base an opportunity to hear him answer their questions live. Scott has always managed to deal with this situations directly and with an honesty that is refreshing and rare.
Invictus - despite objective success - wallows near 52W lows. Scott joins me to try to reconcile what Invictus has accomplished with its current market valuations, as well as lead me through the plan to continue to advance the Cabora Bassa basin to commercial exploitation. Updates on financings (past, present, and future), the PPSA, flow testing and 2024 exploration all made it into this long, 2 hour chat. Look for the written summary I will also produce if you don’t have the time - or stomach - for listening to 2 hours of me.
I will admit I remain a firm believer. It has been rough - it is by far my biggest loser at this point. But yet, I have been buying the last couple weeks. I obviously believe this is one of those contrarian moments you need to be comfortable with if you wish to succeed in this space and have put my money where my mouth is.
2. Thesis Gold: 2023 Ranch Drill Program In Review
Thesis Gold is turning into one of my favourite, underappreciated, plays on the market. Not to overstate things - I’ve always thought it was a strong company, and liked their CEO Ewan Webster - but they’ve got a heck of 1-2 punch with their Lawyers and Ranch projects. With an economic mine plan in their back pocket in Lawyers, Thesis has continued to tap into Ranch for its blue sky exploration potential.
And so far, those efforts have been successful. In 2023, Thesis continued to lay the groundwork for what will no doubt end up becoming a very rich, multi-million ounce deposit in its own right at Ranch. Old discoveries were extended with high-grade step-outs, targets were connected via extensive low-grade mineralisation, and new targets built off always-improving geological understandings turned into new discoveries.
I tried to build a visual presentation to help make sense of what Thesis accomplished at its Ranch targets so we can understand how they have continued to grow and Ewan did a good job I thought of building his conversation around it so people can better understand what Thesis is accomplishing. With a 2024 filled with updated MREs, PEAs, and further blue sky discovery drilling, Thesis looks primed to continue to build off its recent, undeserved, bottom.
3. Sendero Resources: A History of Discovery in Vicuña
Sendero Resources will soon be coming out with its first batch of assays from its first drills at its various targets. Tea leaf reading suggests the first two targets didn’t quite make the grade, but that Sendero is in pursuit of something at its 3rd target - La Ollita. The plan initially was for Sendero to poke a hole through the heart of each of its 4 or 5 targets in turn and then adjust the campaign to pursue the most attractive drill result. That, apparently, is La Ollita, as Sendero is now onto its 3rd drill hole at it.
The market has been jittery - delayed assay results have people fearing the worst, which isn’t unreasonable. But it can also make sense if they believe La Ollita is the prize the market will be waiting for. Oh the drama of pre-discovery speculative investing.
Regardless, the point here is that if Sendero does come good and makes a new discovery in one of the hottest mining districts in the world, it doesn’t really matter if it was the first hole or the last of the campaign. If Sendero can come good and demonstrate a few hundred meters of 0.5%-1.0% CuEq in this area code… what do you think the market’s response would be? Hard not to get excited - this is the bluest of blue sky discovery stories, and why you’re in this space in the first place.
My project, then, is to do a deep dive into one or two other discovery stories that have since gone on to make Vicuña famous to show how rapidly value can be created when fantastic success is found. I will be drawing comparisons to Filo del Sol (not that I am not implying Sendero will be the next Filo del Sol, but nor does it need to be - even something a fraction of that monster would lead to incredible returns for current shareholders). And with any luck, it won’t be long after my article we will watch Sendero take its turn in announcing another Vicuña discovery.
And I will call it there. Trip to the city in the cards today. Look for content to start coming out as we get into the weekend. Something to read while you recover from your Easter ham, perhaps. Enjoy the long weekend.
And, of course, thanks for reading.
-Matthew from JRI