Yesterday, GSP Resource Corp. (TSX-V:GSPR) announced results from two holes from its summer drill program at its Alwin Mine Project in southern BC, Canada. GSP conducted a 5-hole 1,439 meter drill program with the objective of testing deeper targets at both the 4 South Zone and 4 North Zone.
Notably, hole AM21-101 intersected an impressive 4.4 meter section grading 4.42% copper, 3.5 gpt gold, 92.8 gpt silver, and 0.14 ppm rhenium (6.15% CuEq). The hole returned an overall broad bulk tonnage 158.5 meter intersection grading 0.284% CuEq from a combination of both Alwin and Highland Valley style mineralization.
AM 21-101 was targeted to intersect an unmined portion of the historic 4 South zone and this hole intersected higher precious metal grades than were previously known to exist at Alwin, or Teck’s neighboring Highland Valley Copper Mine (the largest copper mine in Western Canada). The hole was collared from the south of the Alwin deposit near its known eastern extent and successfully intersected portions of several known and previously unrecognized copper mineral zones.
One of the other key aspects of hole 21-01 is that it extended Alwin’s mineralization to the southern property line with Teck’s Highland Valley Property. Moreover, the grades intersected in hole 21-01 compare favorably to Highland Valley (average head grade .27% Cu) and continue to add confidence that Alwin has the makings of a viable economic bulk tonnage deposit.
Assays remain pending for holes 21-02, 21-04, and 21-05 – all of these holes have the potential to expand the deeper copper porphyry targets at Alwin and GSP expects the results within four weeks. GSP is well funded for a follow-up drill program at Alwin which is likely to commence shortly after the company has received and compiled the rest of the results from the summer drill program.
Based on Monday’s closing share price of C$.27 GSPR has a C$5.5 million market cap. A very modest valuation for a company with a growing resource next door to a very large and profitable copper mine; Alwin’s location adjacent to the largest open pit copper mine in Canada makes it a unique project and significantly more attractive to a potential acquirer.
GSPR recently added a new 10%+ shareholder, a man named Richard Billingsley. Billingsley is the person who vended the Alwin Project to GSPR and in a vote of confidence in the company’s future he recently chose to increase his stake in the company by participating in a private placement financing at C$.35 per share. Together with GSPR founder & CEO Simon Dyakowksi insiders own more than 30% of GSPR shares. This leaves a tight free trading float of roughly 12.5 million shares.
GSPR.V (Daily – 2 Year)
Copper is in a powerful bull market cycle underpinned by long term structural supply deficits and steadily growing global demand. Permittable brownfields copper projects in safe jurisdictions with first world infrastructure are in short supply. Alwin offers an attractive call option on the price of copper and GSPR is committed to steadily de-risking the project through systematic exploration/infill drilling.
At its current share price GSPR shares are too cheap to ignore.
Disclosure: Author is long GSPR.V shares at the time of publishing and may choose to buy or sell at any time without notice.
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