SSR Mining owns and operates the Seabee Gold Mine in Northern Saskatchewan province in Canada. In 2019 the company produced over 112,000 ounces of gold at the project. Right next door a tiny junior named Taiga Gold (TGC-C), a spinoff from Eagle Plains, owns the Fisher deposit. The Fisher project contains more than 20 km of the same Santoy Shear Zone that is currently being mined by SSR at Seabee. SSR has a joint venture with Taiga on the Fisher property. In January of this year SSR paid Taiga $3 million and formed an 80/20 JV.
A few weeks ago Taiga announced commencement of a new 2,800-meter drill program that has 15 holes planned. Drill results to date confirm similar grades and widths as that of the Seabee mine. SSR has another 6-8 years production at Seabee but obviously would like to have more in reserves nearby. SSR has actually spent over $12 million in exploration at Fisher when they were only required to spend $4 million to earn their interest.
SSR will buy out Taiga at some point. SSR has over $860 million in cash, and they earned $140 million last year.
You have a cash rich major looking for ounces.
Right next door is SKRR Exploration Inc. led by Ross McElroy and a stacked advisory team and some interesting large shareholders including some of the big mining funds.
It is rare for a junior exploration company like SKRR to have management with such a depth of experience and breadth of success. This credibility will enhance their ability to readily access capital markets for SKRR when funding is required.
SKRR obtained an option for 75% of the Leland Project from Taiga. This combined with SKRR’s Irving Project, results in a 23,500-hectare land package. Both have shown gold mineralization from previous work done on the properties.
The Trans-Hudson Corridor has not been heavily explored in the past and it does not carry the cachet of Red Lake, the Abitibi Greenstone Belt, or the Golden Triangle. It has had, though, a number of successful high-grade gold mines in a proven mineral rich region.
Companies currently operating there know the region intimately and their management teams have the experience and expertise to identify and develop promising exploration properties into economically viable operations.
As with investing in any exploration ventures, there is a high-risk/high-reward element to any of these situations. These companies mentioned could enjoy first-mover advantage by being early entrants and becoming big fish in a small pond. And unlike some of the more popular exploration regions, it’s easy to track developments. Who knows – a significant discovery could potentially bring a gold rush to Saskatchewan?
The core pictures are very encouraging, and assays are pending.
SKRR is incredibly cheap with a very tight share structure.
SKRR Exploration Inc.
SKRR-C .22 cents
SKKRF OTCQB 40 million shares
Taiga Gold Corp.
TGC-C $.18 (Apr 01, 2021)
TGGDF OTCQB 80.8 million shares