Nubian Expands Portfolio with Promising Silver Play
Recently, I’ve been keeping my eyes open for juniors likely to be gobbled up by senior firms amid the new bull trend in the metals space. Major producers wait for peak resource value before rapidly expanding asset portfolios with the help of smaller companies, creating opportunities for investors to potentially receive early dividends on their junior stocks.
Up until last month, Nubian Resources Ltd. (TSXV: NBR) (“Nubian”) had focused solely on locating potential gold-bearing deposits in Nevada, USA, but the company’s international acquisition strategy is beginning to take real shape with two recent Peruvian portfolio additions: the Rio Pampas copper/gold porphyry project and the Esquilache silver/lead/zinc project, both located in Southern Peru, a highly prospective area that many major companies operate in.
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The purchases follow the closing of an oversubscribed private placement which returned $415,000 in July. The company stated that the funds would be used for further acquisitions before advancing south of the border with the signing of two binding letters of intent, the first to eventually acquire 100% ownership of 800 hectares of Cu & Au project, and the second securing immediate 100% ownership of 1,600 hectares of high grade Ag Pb Zn Project from none other than Zinc One Resources Inc. (TSXV: Z).
Interestingly, Peru consistently ranks high in the world for zinc (2nd), lead (4th), copper (3rd), gold (6th) and silver (3rd) production, and so it makes perfect economic sense to drift down into these districts searching for paydirt. Further, the state of Peru holds a fond view of the mining industry since the minerals trade dominates the national economy and is responsible for considerable growth in the country spanning decades.
In terms of outlooks, the metals on which Nubian are focused are to be considered relatively safe in the long term. Copper has recently experienced a significant upward run on the back of increased construction and a ban on lower level scrap being imported into China. Gold and silver have both steamed ahead this year, cementing the bull trend that began its flirt last year amid a weakening dollar and continued geopolitical uncertainty.
Recent 2015 drilling results at Esquilache returned 24.2 metres of 131 g/t Ag, 0.4 g/t Au including 8.1 metres of 292 g/t Ag, 0.73 g/t Au, and so the area certainly contains economical quantities of mineralisation to be extracted. Additional exploration is required at Rio Pampas, but the mineralization on-site is consistent with that of copper-gold porphyry systems, quartz stockwork, mineralized breccias and polymetallic skarn systems that are strongly associated with successful producing operations.
Nubian has a strong management team that has extensive experience in acquiring and developing mining projects worldwide. Director & CEO, Martin Walter, has over 20 years of extensive operational experience in mine geology, especially in open pit gold mining, and has worked on a number of precious metal projects worldwide both in senior management and consulting roles. He has led a number of junior mining companies including Forrester Resources Corp. (formerly Vena Resources Inc.,), Treasury Metals Inc., Absolut Resources Inc., Sierra Minerals Inc., Aquiline Resources Inc., St. Andrew Goldfields Ltd., Crown Point Energy Inc. and Amarillo Gold Corp.
With a resume such as this, I’m intrigued as to what Mr Walter can achieve with Nubian. The recent acquisitions tell me that the company are preparing for major maneuvers, but regardless of whether a more senior operation likes the look of their menu, this particular portfolio is beginning to seem rather appealing to yours truly.
Lara Smith has spent over a decade covering commodity markets. She started her career as a buyside analyst in South Africa where she covered soft ... <Read more about Lara Smith>