Today is our daughter’s birthday, 15 years, and here I thought I’d have a Michigan portfolio parcel at her door.
I just spoke with Mike Carr at Bitterroot Resources.
Deviation is a bad thing in exploration drilling. It ends with no birthday present from Michigan.
The meta-sediments at Bitteroot Resources’ Michigan platinum-group-metals target on the upper peninsula are, well, not in his words, but they are a metal-lover’s exploratory bitch. The nature of the rock causes standard diamond drills to deviate from their intended azimuths. “We’ve got it pretty much figured out but we need more financing,” Mr. Carr says.
I have to note here that Bitterroot has been claiming properties in Michigan since the 1990s. So the Canadian geologist and CEO is surely telling the truth when he says, “I am not walking away from these holes.”
The news brief that Mr. Carr distributed is the shortest ever.
Bitterroot Resources Ltd. (BTT, TSX-V) has completed five drill holes totaling 1,704 metres on its Target H in the western Upper Peninsula of Michigan. Three of the five drill holes deviated significantly from their initial azimuth and dip and did not reach their planned target depth. Based on alteration observed in core samples, Bitterroot’s management believes that additional down-hole geophysical surveys and drilling are warranted, subject to financing.
Bitterroot (BTT in Canada) owns or controls 363 square miles of mineral rights in Michigan’s Upper Peninsula. The intention here is — or was, depending on the ability to raise yet more cash — to find nickel, copper, platinum group metals.
Mr. Carr goes on to say he is encouraged by the look and feel of the core that did make it to surface. No mineralization there, but he says the alteration of the rock on the southeast side of the target, along trend with what Rio Tinto has next door, would encourage any geologist to drill further.
TCR take: I have been with BTT for a long time, and was disappointed with the winter and spring delays this year. I believe Mr. Carr when he says he has other professionals who are optimistic about the Michigan rock in hand. I also believe that the company could get some mileage out of the commodities tear that the nickel price has been on recently.
Still, at $160 a meter for exploration drilling, and at least another 2,000 meters or more of exploration drilling needed, the math is challenging. This is a 3-cent CAD stock that will require at least another 25 percent dilution in an equity financing that can get the job done. I believe there are 135 million shares out there, and well more than that fully diluted.
Mr. Carr as a working geologist has been at this a long time. If he raises more cash from his Vancouver crowd, at the current price or near it, we can take that as a validation that someone besides yours truly believes Bitterroot’s Michigan tracts are worth continued pursuit.
He says he thinks he can use standard drill rigs again and not far more expensive directional drill rigs.
I probably own about 400,000 BTT shares, maybe more. I know some are in our daughter’s account. For now, I sit and watch.
In the meantime, perhaps I had better refresh my notebook with Wellgreen Platinum’s progress in Yukon on the nickel-copper-platinum group metals front. The WG resource of measured and indicated ounces (3-e: platinum, palladium and gold) shows a rise to 5.5 million up there. So far, Greg Johnson, the fresh CEO at Wellgreen, is hitting his targets without deviation. The stock is on a mini roll in Canada trading. It is WG in Canada.
Maybe next year at this time, there will be a Yukon birthday party.