SLS announced that commencement of a 5km program an Nanadie Well. Not much to say other than their disclosures are best in class compared to most other explorers as in the aerial and x-sec images, the company clearly shows the planned drill holes in a way that gives a good sense of how infill and/or growth in the resource can be achieved in the campaign.
This is similar to how I noted ORD reported and not enough explorers do this. With ORD, you can see how drilling would pan out and add value if the geology & market gods where on your side. These are little markers that help give continued confidence you're backing decent management teams that are exploring properly.
This is not so common let alone in an explorer this small. Despite some selling from Nero, $SLS has a relatively strong insto register. Creates a good foundation to re-rate off a discovery or make a transformational acquisition.
Been a while since SLS gave something to talk about, today releasing assays from the drilling done at the Bluetooth prospect.
Pros: thick hits with grade from surface over a strike of ~800m
Cons: only in the oxide with no indication of a source in the fresh (yet)
Whilst the con means scale will be moderate, higher grade low strip ounces in oxide have value and in this gold price environment, a lot of value as it opens up the potential to do a HV mining & toll deal that other juniors have been able to do to generate cash and fund ongoing exploration.
Below are some basic sums and given the level of density in drilling, particularly to the south, I will say there is a half decent chance that these may be overstated.
As illustrated above, there is a case that there could be up to 100koz loosely defined but I would hazard it’s a firmer ~20-40koz given the better definition at the northern end.
As some may recall, SLS sold off the 177koz at Hobbes for $12.5m in April 2024 to the neighbouring NST (Carusoe Dam) which at the same valuation ($71/oz) implies ~$1.6-3.0m here. I would say that the price for ounces to go into Carusoe Dam may have gone up since.
But as noted above, the surge in the gold price has opened up toll mining options which SLS could consider now as a way to monetise these ounces for a better RoI. The company has not indicated this as a pathway in any formal sense but will be considered more deeply depending on the results of follow up work. It would also be considered alongside success across this part of their tenement package (i.e. Statesmans Well, Edjudina).
Given the results, SLS stated they will be returning ASAP to test extensions and infill to support an inaugural MRE. With $13.6m in cash at the end of the last quarter, SLS remains cashed up to do this follow up program and maintain exploration across the tenement package.
With success starting to be recognised, good management and with a fully funded ongoing drilling programs across several prospects, SLS still remains an attractive exploration play.
Plays like SLS are one of patience but this slide highlights the potential to discover and delineate a gold resource in a good part of town over the coming 18mths. With $14m cash on hand, the co is resourced to carryout this plan and dial up exploration if they manage to stumble onto something of significance. As such it retains the "call option" like quality.
