On April 6 Cartier Resources (ECR, TSX-V) announced that its board of directors has approved a 50,000-m drill program to be conducted over the next 15 months.
“This is a significant investment intended to demonstrate the depth and lateral extensions of the existing Gold mineralization and historical resources on the projects,” commented Philippe Cloutier, President and CEO. “Our objective is to have these assets graduate to the next level towards new resource estimates and believe this will reward our shareholders.”
Cloutier and his team capitalized on the industry’s worst downturn in decades by acquiring 4 advanced Gold projects, including the past producing Chimo mine (an estimated 379,012 ounces) just east of Val d’Or in a Camp the BMR team is intimately familiar with. Agnico Eagle validated Cloutier’s moves by making a strategic investment into Cartier last December, acquiring 19.75% at 20 cents per share.
Notably, half of Cartier‘s drill program, or 25,000 m, will be focused on Chimo. Drilling will commence in June.
Cartier has already demonstrated continuity of high-grade Gold mineralization up to 650 m east of the former Chimo mine. Drill result highlights included 9.9 g/t Au over 4 m and 17.7 g/t Au over 3 m.
A 50,000 m drill program!
Cartier has a market cap of $30.8 million. I’m not aware of any explorers of Cartier’s size that are drilling so extensively on 4 advanced Gold projects (all within the Abitibi). Here’s the breakdown of what to expect:
- Wilson project – 1 rig will be drilling 18 holes for a total of 7,000 m. The program is scheduled to be completed by June. Recent channel sampling results returned 21.3 g/t Au over 5 m;
- Chimo mine project – 2 drill rigs will complete a total of 25,000 m (June through December);
- Benoist Project – 10,000 m of drilling will target 16 anomalies early in 2018. A previous operator intersected 5.6 g/t Au over 53 m.
- Fenton project – with partner SOQUEM, 8,000 m are planned with the drilling starting in 2017 or early 2018.
If you know of any explorers in the $25 million to $50 million range that are doing this amount of drilling, please let me know – Cartier seems unique in the sense that it’s punching way above its weight class!
By this time next year Cartier could have 2 projects (maybe more) that are advancing toward an impressive NI-43-101 resource estimate and/or the feasibility stage.
Nothing moves the price of an exploration stock like drill results and, importantly, the anticipation of drill results. Given the extensive 50,000 m program underway, one could only expect Cartier will be a news release powerhouse over the next 12 months. Expectations have been building into the stock price but I don’t believe they’re fully baked in at this point.
Clearly, ECR is in a well defined uptrend and the volume is really beginning to pick up. Notice the +2 million volume bar from the first week of April – it pushed ECR from 20 to 23 cents. Any weakness down toward that level would create an excellent entry point for those looking for an aggressive drilling play selling for a reasonable price.
About the writer: Daniel T. Cook, the newest member of the BMR team, is from the great state of Texas and now resides in beautiful Arizona. Daniel has a strong passion for the junior resource sector and has followed the Venture and broader markets with great interest since he bought his first stock 18 years ago at the age of 12. He’s also a licensed investment professional who was a Bright Future’s Scholar at the University of Central Florida, graduating in 2010 with a major in Finance. We know our readers will enjoy his material and benefit from his wisdom and insight. We welcome him aboard!