It has been nearly a year since we posted on this blog. Last March 18th, we wrote a bullish call on Awalé Resources Limited (ARIC.V) after high grade gold intercepts were announced. The next several trading days saw it move from $0.26 to as high as $1.00. We don't post often here because we are very selective with our picks to ensure that we are picking winners. Beyond ARIC, five of our last 11 picks going back to June 2022 have been massive winners (2-10x) that have kept or increased their gains with time. A near impossible track record on the junior exchanges. That includes Simply Better Brands Corp. (PKANF) (SBBC.V), GobiMin Inc. (GMNFF) (GMN.V) (since bought out), Surge Battery Metals Inc. (NILI.V) (NILIF), Valeura Energy Inc. (VLE.TO) (PNWRF), and Sintana Energy Inc. (SEI.V) (SEUSF). The remainders were GSI, FUU, EQTY, DYG, HAR and GBML, with only the latter two being excessively poor performers. We find picks that we think can run in the short and the long term. And we believe that the next one will be San Lorenzo Gold Corp. (SLG.V), which has similar traits to ARIC. We are up to 1,031 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 121 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.
From SLG's news released yesterday:
San Lorenzo Drills Discovery Hole at Cerro Blanco, Reporting 153.5 M of 1.04 g/t Gold and Reports 39.6 Metres of High-Grade Gold in Three Intervals in the First Hole at Arco De Oro
CALGARY – TheNewswire - March 3, 2025 - San Lorenzo Gold Corp. (" San Lorenzo " or the " Company ") (TSXV: SLG) is pleased to announce assay results from the first of 3 recently drilled holes on its Cerro Blanco gold/copper porphyry target as well as partial results from the first of 3 holes recently drilled on its Arco de Oro epithermal gold target. Cerro Blanco and Arco de Oro are targets located within San Lorenzo’s flagship Salvadora property in Chile.
San Lorenzo’s CEO Al Kroontje commented that “it’s extremely gratifying to be announcing a discovery hole with our first drill test of Cerro Blanco, a target management has had high conviction about. Cerro Blanco is a very large target and we’re just scratching the surface with the three reconnaissance holes in the current program. Arco do Oro has, again, generated results that confirm the robustness of this large, high-grade gold system. Arco has the scale to contain a large resource. San Lorenzo is fortunate to control a property that has not one or two, but five high quality target areas. We plan to expand on our exploration efforts to advance this high-quality project.”
1) Cerro Blanco
The table below shows the mineralized intervals and assay results from Hole SAL 01-24 - the first of the 3 holes recently drilled on the Cerro Blanco copper/gold porphyry target.
Hole # | From(m) | To(m) | Width(m) | Au g/t | Ag g/t | Cu % | |
SAL 01-24 | 229.0 | 382.5 | 153.5 | 1.04 | 1.0 | 0.05 | |
including | 290.5 | 382.5 | 92 | 1.38 | 1.1 | 0.06 | |
including | 331.7 | 335..5 | 3.8 | 12.78 | 6.5 | 0.51 |
Cerro Blanco is a two-by-two kilometer area of coincident copper/gold soil and rock geochemistry, IP chargeability and exposed lithocap that San Lorenzo believes overlays a mineralized porphyry center. Cerro Blanco has never been drilled before. Mineralization in hole 01-24 continued to the bottom of the hole, indicating the mineralized system remains open to depth.
Commenting on the Cerro Blanco results, Terence Walker, San Lorenzo’s VP of Exploration explained : “ The initial drill program on Cerro Blanco was designed as a widely spaced first pass recon program. It was intended to confirm the company's opinion that the coincident strong surface copper and gold sample values, the alteration types observed in the local intrusive and volcanic rocks and the underlying IP/Chargeability anomalies are part of a local gold/copper enriched porphyry deposit similar to those at the nearby El Salvador mine complex. These assays results indicate the hole’s position in the outer margin of a porphyry deposit, and we feel extremely fortunate to have received such significant results from the very first hole drilled on this exciting target.”
Terry Walker continued: “The assay results correspond exceedingly well with our IP interpretation which reinforces our belief that IP will continue to be a valuable tool during future drilling.”
San Lorenzo has been advised that assay results from the other two holes recently drilled on the Cerro Blanco porphyry target will be forthcoming during the next approximately 2 weeks. Holes two and three contain alteration and mineralization similar in appearance to hole one.
2) Arco de Oro
The table below provides assay results from Hole SAL 01-25 - the first of the 3 holes recently drilled on the Arco de Oro epithermal multi-vein feature. This hole is a 300 metre step out to the northwest along trend from past drilling at Arco.
Hole # | From(m) | To(m) | Width(m) | Au g/t | Cu % | |
SAL 01-25 | A | 15.7 | 22.2 | 6.6 | 5.61 | Pending |
including | 15.7 | 18.0 | 2.3 | 11.14 | Pending | |
B | 110.0 | 119.7 | 9.7 | 4.4 | Pending | |
including | 117.0 | 118.4 | 1.4 | 12.2 | Pending | |
C | 151.1 | 174.4 | 23.3 | 4.8 | Pending | |
including | 152.8 | 156.8 | 4.0 | 17.95 | Pending |
Terry Walker provided the following observations regarding Hole SAL 01–25: “The gold assays received from the first of the 3 holes recently drilled on Arco de Oro confirm our thesis that several epithermal vein systems are converging in a northwesterly direction – as suggested by the strengthening and widening of the IP chargeability anomaly in that direction. With extensions of high-grade mineralization over significant widths continuing as we head northwest, the need to actively explore the additional 2.5 km of strike to the northwest - evident from shallow artisanal workings - is very much warranted.”
Arco de Oro is a five-kilometer trend of epithermal veining indicated by surface exposures and numerous small shallow artisanal workings. Every hole drilled by San Lorenzo at Arco de Oro has reported at least one significant gold intercept, indicating the strength and consistency of this large gold system. High grade results have been obtained to a depth of 300 metres.
San Lorenzo is only in receipt of the gold assays from Hole SAL 01–25 with copper and other elements expected during the upcoming week.
Management is planning significant follow up programs at both Cerro Blanco and Arco de Oro with additional drilling also planned for the Tres Amigos copper-rich epithermal system. Further drill results from Arco de Oro and Cerro Blanco will be reported as they are received and interpreted, and future exploration plans will be announced once all current drill results are received.
This is unprecedented to see not only one but two major discoveries on the first holes announced of two separate drill programs. ARIC currently has a $40 million market cap and last March closed in on a $100 million market cap days after announcing what we would consider comparable results to SLG - twice the grade at half the length - and that was on one property, not two.
SLG initially shot up over 300% to $0.30 yesterday, a very deserving reaction to these results. The stock has since pulled back to $0.18, representing the perfect level to buy in as more results are expected in 2-3 weeks. A similar pattern of news as on ARIC last year. Why has it pulled back to this level? Other than the obvious market volatility, there are 8.3 million warrants with an exercise price of $0.18. Those warrants expire within the next two weeks. Clearly the goal here for shareholders/warrant holders and management alike is to get all 8.3 million exercised. That would bring in $1.5 million in cash and would essentially replace any capital raise at this level. To incentivize exercise, the shares would have to be a few cents in the money, at $0.20 or higher. Then immediately after expiry at the end of next week, we expect the stock to fly as the warrant overhang would be eliminated and peak speculation would take over.
Inclusive of the warrants, shares outstanding would be 80 million. We expect a stock price of $0.50 to come in line with ARIC's valuation, but can't rule out a run to $1.00 or higher should the follow up results equal or better the initial results on one or both of these properties.
Disclosure: We are long SLG.V
