New Nickel, Copper, and Cobalt Mineralization Discovered in Montana Drill Results

Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) reported the first tranche of drill results from their 2023 expansion drilling at the Stillwater West project in Montana.

Funded by Glencore, which holds a 15% share position, six holes totaling 2,310 meters were drilled, focusing on expanding deposits off the west edge of the nine-kilometer-long resource area. Highlights include significant nickel, copper, and cobalt mineralization with high-grade intervals. Notably, hole CM2023-05 intersected 52.1 meters at 0.49% nickel equivalent (NiEq) containing 4.8 meters at 1.22% NiEq, which includes an impressive 2.8 grams per tonne (g/t) platinum, palladium, and gold.

These results, along with pending assays on three additional holes, continue to support the detailed geological model of the Stillwater Igneous Complex. CEO Michael Rowley emphasized the project's potential to advance as a large-scale source of critical minerals, leveraging its size, polymetallic nature, and strategic location beside Sibanye-Stillwater's producing mines.

The company also announced an upcoming presentation by Michael Rowley at the Emerging Growth Conference Metals Mining Resources & Energy 3.0 on May 29, 2024, where a comprehensive overview and update on the Stillwater West project will be provided, including Q&A.

Results Highlight From The Company Press Release:

• Six holes totaling 2,310 meters were completed with a focus on expanding deposits at the west end of the current nine-kilometer-long Stillwater West resource area.
• Holes CM2023-04, -05, and -06, reported here, successfully intercepted magmatic nickel and copper sulfide mineralization associated with a large and previously untested electromagnetic ("EM") anomaly that forms part of a string of anomalies extending over 12 kilometers along strike, as predicted by the company's geologic model.
• Results demonstrate significant potential to expand the 2023 Mineral Resource Estimate ("MRE") at three cut-off grades, with wide widths of higher-grade mineralization at >0.70% recovered NiEq cut-off grade contained within thick mid-grade intervals at >0.35% NiEq cut-off that are in turn set within long lengths of potential bulk tonnage mineralization at >0.20% NiEq cut-off grade, including:
  • CM2023-04:
    • Bulk tonnage: 98.8 meters at 0.27% NiEq (97.2 to 196.0m);
    • Mid-grade: 44.0 meters at 0.35% NiEq (100.7 to 144.7m);
    • High-grade: 2.6 meters at 0.71% NiEq (110.7 to 113.3m).
  • CM2023-05:
    • Bulk tonnage: 293.8 meters at 0.22% NiEq (247.5 to 541.3m)
      and 45.1 meters at 0.33% NiEq (284.7 to 329.8m);
    • Mid-grade: 52.1 meters at 0.49% NiEq (488.6 to 540.7m)
      and 14.9 meters at 0.60% NiEq (508.7 to 523.6m);
    • High-grade: 4.8 meters at 1.22% NiEq (492.0 to 496.8m).
  • CM2023-06:
    • Bulk tonnage: 158.9 meters at 0.22% NiEq (160.8 to 319.7m);
    • Mid-grade: 25.9 meters at 0.50% NiEq (251.2 to 277.1m);
    • High-grade: 5.8 meters at 0.96% NiEq (259.7 to 265.5m).
• Results continue to drive the first-ever detailed geological model completed across the lower Stillwater Igneous Complex, with these results informing three mineralization styles in particular: broad Platreef-style Ni-PGE-Cu-Co mineralization associated with the 12-kilometer-long EM anomaly, nickel sulphide-rich N-series mineralization, and stratiform reef-type PGE-Ni-Cu chromite mineralization, as detailed below.
• Final assays are pending from holes CM2023-01, -02, and -03, in addition to rhodium assays.
• All deposits and mineralization remain open for expansion in planned follow-up drilling.
• The company is looking at the potential to recover value from the ferrochrome content, driven by the 2.3-billion-pound chromium resource defined by the January 2023 MRE and historic production of chromium from the Stillwater district.

The High Demand For Copper and Nickel

Drilling initiatives like these are fueled by a rise in copper price this year. As Michael Ballanger of GGM Advisory Inc. wrote on April 30, "Despite the possibility of a correction, I see US$75-100 by the end of 2025. A copper-gold leviathan, it is a core holding in any growth portfolio looking for the leadership of the cyclical names to replace technology as the next mania."

Chris Temple of The National Investor wrote, "The company's Stillwater West project in Montana (benefitting anew from investments into the company by Glencore, most recently as the lead/major investor in a current private placement) is a rich, albeit complex, area sporting precious metals, base metals, and platinum group metals."

Stockhead, in a May 21 report on gold and copper, pointed out the upside of the metal, writing, "Lower rates make holding gold more attractive since there's less opportunity cost of holding non-interest-earning bullion . . . Meanwhile, copper prices on the LME hit a record high, surpassing US$11,000 a ton for the first time as investors flocked to the metal due to an anticipated supply shortage."

Another article from Stockhead on May 13 noted how Sprott's Steve Schoffstall spoke highly about nickel potential. 

"In our view, nickel miners are poised to offer investment attractive opportunities to investors," Schoffstall said. "Although nickel prices declined in 2023 on the back of softer Chinese EV sales and a flood of supply from Indonesia, the metal has been rebounding thus far in 2024 and benefiting the prospects of mining companies.

Schoffstall added, "The rise in nickel prices seems to be a combination of investor sentiment, potential supply constraints, and the underlying long-term demand for nickel in the clean energy transition."

Catalysts

The expansion drilling campaign at Stillwater West, funded by Glencore's strategic equity investment, continues to drive significant growth for Stillwater Critical Minerals. CEO Michael Rowley highlighted the project's potential to rapidly advance as a primary source of low-carbon critical minerals, emphasizing its size, polymetallic nature, and strategic location.

Additionally, the 2023 drilling season achieved a 100% success rate, with all holes intersecting significant magmatic sulfides. These successes, guided by high-resolution geophysical surveys, bolster confidence in the geological and structural models, paving the way for future drilling campaigns and resource expansion.

Dr. Danie Grobler, Vice President of Exploration, noted, "The successes attained with the 2023 drilling have further increased our confidence in our detailed geological and structural models. High-resolution geophysics is pivotal in providing definitive EM target anomalies for future drilling campaigns."

What Analysts Are Saying

On May 1, Chris Temple of The National Investor not only recommended the company's stock but explained why.

Temple wrote, "Stillwater Critical Minerals is one of my recommendations that has at least some meaningful copper component in the story . . . the company's Stillwater West project in Montana (benefitting anew from investments into the company by Glencore, most recently as the lead/major investor in a current private placement) is a rich, albeit complex, area sporting precious metals, base metals, and platinum group metals."

This current momentum is one that has been a long time coming.

As Couloir Capital said in October, "We are pleased by Stillwater Critical Minerals Corp.'s ongoing resource expansion drilling program at Stillwater West as the company's priority on high-grade structures could significantly impact its valuation . . . we believe Stillwater West is well positioned to rapidly advance as a potential large-scale, low-carbon source of nickel, copper, cobalt, palladium, platinum, and rhodium."

Ownership and Share Structure

Management and insiders own approximately 20% of Stillwater, according to the company. Executive Chairman and Director Gregory Shawn Johnson owns 2.95%, President and CEO Michael Victor Rowley owns 2.58%, Independent Director Gregor John Hamilton owns 1.64%, Independent Director Gordon L. Toll owns 0.51%, and Vice President of Exploration Daniel F. Grobler owns 0.21%, according to Reuters.

Institutions own approximately 25% of the company, high net-worth investors own about 27%, and Glencore Canada Corp. owns 15.4%. About 18% of the company's shares are in retail, Stillwater said.

There are 197.79 million shares outstanding with 162.25 million free float traded shares, while the company has a market cap of CA$30.66 million and trades in a 52-week range of CA$0.13 and CA$0.23.

Important Disclosures:

1. Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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