Could This Metals Co. Have A Massive Sulfide Zone?

Source: Michael Ballanger 06/21/2024

Michael Ballanger of GGM Advisory Inc. shares why he believes Vortex Metals Inc. (VMSSF:OTCMKTS; VMS:TSX; DM8:FSE) is currently a Buy.

Vortex Metals Inc.’s (VMSSF:OTCMKTS; VMS:TSX; DM8:FSE) stock traded 5.3 million shares yesterday as the block held by the estate of a recently deceased director was mostly absorbed with less than a handful of orders. The balance of the block will be cleaned up at the opening, after which you can expect a series of news releases with one critical and very strategic appointment that could change the entire face of Vortex, the company.

To refresh the memory banks, Illapel is a Chilean project located next to the Rio-27 mine (upon which VMS has a ROFR), which is estimated to contain 6.2m tonnes of 1.37% Cu. Initial sampling at Illapel has confirmed similar grades emanating from structures similar to what is occurring at Rio-27. Drilling is expected to begin in August (at the very latest) with an initial 2,000-meter program in two copper-bearing targets and one gold anomaly as their Phase One initiative.

Lurking in the background for VMS are two wonderful targets located in Oaxaca, Mexico — Riqueza Marina and Zaachila, both high-octane “VMS” targets. “VMS” is known throughout the mining industry as a short-from for “volcanogenic massive sulfides,” typically the largest and richest ore bodies on the planet. As an example, the Kidd Creek Mine in Timmins, Ontario, is the most famous and is still producing some sixty years after the initial discovery was made in 1963.

One of the characteristics of the Kidd discovery was the presence of andesites and rhyolites, two key pathfinder minerals known to be common to VMS deposits. At Vortex’s Riqueza Marina project, a huge rhyolite dome sits directly above a massive magnetic anomaly that can be one of two things: either a zone of worthless pyrite or massive sulfides. Given the presence of rhyolite, my guess is that it is a massive sulfide zone. And given the size of the anomaly, it could be huge.

Now, the problem has been for the past couple of years that the populist movement in southern Mexico has empowered the local communities to take an adversarial stance with regard to foreign mining companies (like Vortex), but with recent increases in unemployment and the newly-elected president and her centrist-vs.-populist leanings, it is felt that community agreements are imminent for both Zaachila and Riqueza Marina. So, with Illapel in the forefront and the two Mexican assets as backup (with Riqueza as the “dark horse”), Vortex is now moving quickly to the head of the GGMA list as a possible first mover.

Buy Vortex at the $0.15 limit. (last at $0.105)

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1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Vortex Metals Inc.
2. Michael Ballanger: I, or members of my immediate household or family, own securities of: Vortex Metals Inc. I determined which companies would be included in this article based on my research and understanding of the sector.
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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: VMSSF:OTCMKTS;VMS:TSX;DM8:FSE, )