Gladiator Metals - The copper explorer looks setup for a run
I took a small position in the stock this week, as we seen record daily volume come in as the stock looks ready to break out of some near term consolidation.
Gladiator Metals has been showing up in my stock screener regularly for many weeks, I looked into the story a little bit deeper and I really liked the potential of the stock in the near term. When these small copper stocks get some momentum going with good drill results they can really move quickly. Look at what happened to Hercules Silver price when they discovered a copper system on their property. It gained over 400% in 6 weeks.
As junior mining investors we are always looking for opportunities like the one presented above. I am not saying Gladiator Metals is going to perform anywhere close to this, but I do think there is the potential for some really nice share appreciation in the near term.
Alright so let’s get into Gladiator Metals a little bit more, the market cap of the company is only $15 million Canadian and the share structure is very favourable for a volatile run with only 50 million shares outstanding at this point. The company is cashed up after raising over $7 million dollars in the summer.
The company is advancing the Whitehorse Copper Project which is based in the Yukon Province of Canada. The province is home to several copper and gold mines and is known for its mining potential. The company is able to explore their project year round at this location which is very important and often an overlooked aspect of these projects.
The Whitehorse Copper Project is a brownfields exploration project due to the fact that the project was in production in the 1970’s when Hudbay Minerals owned it. They had both open pit and underground mining at the time and produced >10 mt @ 1.5% Cu. There is over 30 known deposits/prospects at the property, Hudbay Minerals had to shut down production in 1982 due to the economic conditions at the time.
The Cowley Park Prospect on the property reached the Feasibility Stage before the mine had to shut down in 1982, this has been a main area of focus for the company here some of the historic holes from the area.
You can see the very high grades at shallow depths over good lengths. These are very impressive holes and I would not expect this data from a company that is only worth $15 million dollars.
The company received 9 of 22 assays in December from Cowley Park, there is still 13 assays pending set to be released anyday now. The company discovered a new zone of mineralization 50 metres south of the current Cowley Park historical workings. Upon the news release of the first 9 holes the stock has risen over 30%. Which shows the potential for a run if the next 13 holes are of similar quality.
The company has lots of historical data they’ve been going through and recently released some data from the Middle Chief Zone which the company plans to start exploring in the near term as they just received the exploration permit. Look at some of these historic holes from this target, if the company were to release some of these holes into the current market, you’d have to think a re-rate would quickly occur.
This week the stock had record high daily volume come in when it was up over 7%, this usually a really good sign. Especially when assay results are due anyday. The stock doesn’t have a long history and not much resistance ahead. At a $15 million market cap I really like the risk/reward on this one. Even in tough markets the last couple years the market has rewarded good copper holes.
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