Last week we reported that Sentinel Resources has staked and acquired eight gold exploration concessions, encompassing 945 square km in the state of New South Wales, Australia.
This week the North Vancouver-based company adds to its portfolio with seven silver concessions, also located in New South Wales.
Sentinel Resources (CSE:SNL, OTC:SNLRF)
Having recently IPO’d on the Canadian Stock Exchange at a dime a share, SNL has already conducted field work at its Pass property near Nelson – one of three British Columbia projects the North Vancouver-based company has in its portfolio – and announced a work program at its Waterloo property, near Vernon. Sentinel has also gone on an acquisition spree, that includes the coveted Salama gold project in Peru, eight gold concessions and seven silver concessions in New South Wales.
A junior resource company is only as good as the management and technical team behind it. Joining an already aggressive capital markets and development team are recognized industry veterans Dr. Peter Pollard (Chief Geologist), Danny Marcos (Exploration Manager) and Chris Wilson (Senior Advisor).
The new team is already bearing fruit with a robust, large-scale acquisition in a highly productive region of Peru; and a commanding land package in Australia, with numerous high-grade historic gold mines and showings.
The retail-focused company seeks to expand their shareholder base to a wide and engaged retail base so that small investors can be part of the company’s future.
Rob Gamley, Sentinel’s President & CEO, must have laid out a corporate plan impressive enough to sign a team of this caliber.
Peter Pollard is a regular speaker at major conferences and has presented short courses on ore deposit geology for more than 25 years. A 43-101- and JORC-compliant Qualified Person (QP), Dr. Pollard is a skilled communicator capable of breaking down and presenting complex technical material to analysts, shareholders and board members.
Danny Marcos was a key member of the WMC technical team that discovered the massive Tampakan deposit in the Philippines – 15 million tonnes of copper and 17.6 million ounces of gold. With over 30 years of field experience, he is a results-driven geologist with proven ability to effectively manage all aspects of international projects ranging from early stage (greenfields) to advanced/resource stage.
Chris Wilson was an Exploration Manager for Ivanhoe Mines Mongolia, responsible for an 11 million hectare portfolio. He is a 43-101- and JORC-compliant QP, bringing over 30 years of “international area selection and prospect generation, target generation, and the design and management of large resource definition drilling and pre-feasibility programs.”
On Monday Sentinel Resources announced it has acquired, by staking, seven silver concessions – Wallah Wallah, Stony Creek, Carrington, Dartmoor, Glens Skarn, Broken Hill West and Goongong – totaling 386 square kilometers in New South Wales.
Among the silver projects are at least 23 historic silver mines and three past-producing gold mines. According to government documents, production records indicate that silver grades were generally high-grade and exceeded 1 kg/t Ag in some instances.
Six of the concessions are located with the well-mineralized Lachlan orogenic terrane (a fragment of the Earth’s crust), and one is in the renowned Broken Hill region of Curnamona Province.
According to Sentinel,
The Lachlan Orogen comprises a series of well-mineralized accretionary terranes formed during the Ordovician and Early Carboniferous Period. Despite being known as a major copper and gold producer — the exploration potential for silver is excellent.
All seven concessions will be 100% owned with no royalty obligations or back-in rights.
Sentinel has acquired these projects at remarkably low cost – just AUD$10,000 per concession, plus required exploration expenses amounting to $25,000 in the first year and $50,000 in the second.
The company’s technical team is currently reviewing historic data, to fast-track reconnaissance follow-up and to define drill-ready targets.
“The acquisition of seven strategically located silver projects, within the prolifically mineralized Lachlan orogenic terrane and the world famous Broken Hill Block, provides an excellent complement to the Company’s New South Wales gold projects,” states Rob Gamley, President & CEO.
He adds that the silver properties come with a significant historic database, and encompass a range of deposit including skarn mineralization associated with porphyry intrusions, volcanic massive sulfide (VMS) deposits, orogenic vein deposits, and Broken Hill-type.
“The company believes that targeting different styles of mineralization significantly reduces exploration risk,” Gamley states.
Sentinel is shifting its focus from the Waterloo project in BC, to its newly acquired silver and gold concessions in Australia.
This makes sense, given they can work there year-round; there are some 3,000 data points compiled from historical exploration of the eight gold projects, providing practically endless news flow; and the fact that they now have an in-country team – two members of the technical team live in Australia and have expertise in the continent’s complex geology.
The silver projects look incredibly prospective. Among them are at least 23 historic silver mines and three past-producing gold mines. Production records indicate that silver grades were generally high-grade and exceeded 1 kg/t Ag in some instances!
Sentinel Resources is retail investor-focused, which I like, and management appears to be good stewards of capital. Gamley told me they’ve really excelled at finding projects that have low cost of entry, and minimal carrying costs as they are developed.
Indeed. At just AUD$10,000 per concession, plus required exploration expenses amounting to $25,000 in the first year and $50,000 in the second, this is a great deal for Sentinel and its shareholders.
We are talking major upside at rock-bottom acquisition costs. Not only are stockholders exposed to blue-sky exploration potential, in Australia, the second-largest gold producer in the world, known for its favorable geology and easily extractable ore – resulting in low costs and high margins for the country’s gold mining industry – they are also getting exposure to silver prices at an ideal point in time.
Sentinel Resources Corp.
Shares Outstanding 18,555,000m
Market cap Cdn$12.98m
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The white metal is poised to move higher on the back of continued strong investment and industrial demand, and silver juniors have historically offered the best leverage to rising prices.