Newsletter Writer Backs High-Grade Gold, Exits Space Play

Source: Ron Struthers 08/28/2026

As August is coming to a close, Ron Struthers of Struthers Resource Stock Report shares an update on stocks on his list.

The dog days of August are coming to an end as we approach a typical stronger season for the miners and junior explorers that often see a jump higher after summer.

Today, an update on three stocks on my list.

South Pacific Metals

^{Recent Price: CA$0.92}

^{Entry Price: CA$0.52}

^{Opinion: Hold, buy on weakness}

South Pacific Metals Corp. (SPMC:TSXV; SPMEF:OCTCQB) is a prime example of a stock that has run higher on drill results. At the end of July, when the stock was around CA$0.70, they announced assay results from five drill holes, ONED26-010 to ONED26-014, at its 100%-owned Osena Project, located immediately southwest of K92 Mining’s Kainantu gold-copper mine in Papua New Guinea.

The program involved step-out drilling along the Megabe structures and a first test of an adjacent structure to the southwest. All five holes intersected mineralized structures.

The four holes on Megabe mapping strike extension to more than 300 meters, and the structures remain open along strike in both directions and at depth; ONED26-010 confirmed that mineralization extends beyond the Megabe corridor.

Highlights:

More than 300 meters of confirmed mineralized strike at Megabe. Step-out drilling has traced continuous mineralized structures from ONED26-014 in the northwest to ONED26-012 in the southeast.

• ONED26-011 intersects a potential fourth mineralized zone. The hole returned 5.1 m at 1.79 g/t AuEq from 313.3 m, including 3 m at 2.66 g/t AuEq beyond the window predicted by the Company’s interpretation.

• Information to date indicates the Company is above a significant intermediate-sulphidation epithermal vein system. Every reported hole targeting Megabe has intersected mineralised structures, from the first intercept in ONED26-007 (12 m at 1 g/t Au, including 1 m at 18.1 g/t Au) (see news release dated June 16, 2026); through the ONED26-009 discovery; four of the five step-out holes reported today cut Megabe in the upper part of the system, above the high-grade target zone.
• Megabe is one of eight identified mineralized structures at Ontenu — most remain. Only small portions of three of the eight NW-trending structures — Jorkol, Onki, and Megabe — have been drill-tested across the five-kilometer Ontenu trend.
• Geometry defined — drilling now turns to the high-grade target. The step-out program has delivered the structural framework to drill the high-grade target at depth and down-plunge to the southeast of discovery hole ONED26-009 — 5 m at 12.84 g/t AuEq (including 2 m at 28.06 g/t AuEq) and 12.2 m at 6.24 g/t AuEq (including 2 m at 16.65 g/t AuEq) (see news release dated July 6, 2026).

The CEO’s comments make some very good points, and I have pasted them in here.

CEO Timo Jauristo commented, “These four holes confirm the Megabe structures hold together along strike, are mineralized, and indicate the upper margins of an epithermal system. We think the high-grade zones in hole ONED26-009 have only clipped the upper edges of the main system, and we will drill a few deeper holes below ONED26-009 to test for continuity of high grade in that direction.

“It is important to note that we are currently drilling only one small section of Megabe, and it is just one of eight currently known NW-trending mineralized zones that have been mapped at Ontenu, most of which have yet to be drilled. We have commenced planning for the next phase of exploration to test these other known structures. Much of the Ontenu area remains to be mapped. Our immediate focus is the deeper high-grade at Megabe, targeting veins showing the same character as Kora and Judd next door at K92 — and will start drilling the first of these holes shortly.”

Last financials show about CA$6.94 million in cash. They have about 8.5 million warrants that can exercise at CA$0.90, so this could bring in significant cash

Drilling has continued without pause. While assays from the Megabe step-outs were pending, both rigs advanced to Ontenu Central to test the newly mapped NW-SE mineralized trends; two of the four planned holes are complete, and two are nearing completion. Assays from Ontenu Central will provide a first test of these trends while drilling advances at Megabe.

At Megabe, the next two holes are planned to test for further high-grade targets below and down-plunge to the southeast of the high-grade intercepts in ONED26-009, where the structures remain open. The first rig will move to Megabe, with the second to follow on completion of the final Ontenu Central hole.

Management and Insiders own about 1/2 the stock, and warrants exercisable at CA$0.90 could keep the stock down below CA$1.00 for a while, but it appears to be about to break out to the upside.

I would hold the stock and buy on any weakness. You can review my original report here.

Destiny Tech

^{Recent Price: US$34.85}

^{Entry Price: US$28.30}

^{Opinion: Sell}

I suggested Destiny Tech100 Inc. (DXYZ:NYSE) as a way to play Space Exploration Technologies Corp. (SPCX:NASDAQ) before its IPO, as Destiny held the most pre IPO SpaceX shares.

However, Destiny in no way traded as any kind of proxy to SpaceX; it was just a huge over-priced speculation ahead of the SpaceX IPO. And this is why the Call options had extreme premiums that we took advantage of. These call option premiums have now collapsed

I suggested writing/selling the September US$50 call that was bid for around US$14. You could have bought the stock at US$42.30 and sold/written the September US$50 call for US$14. In effect, this reduced your buy price to US$28.30 (US$42.30 – US$14).

Judging by no volume on the calls, nobody took me up on this trade. Regardless, I now suggest closing the trade now that the call premiums have collapsed. The September US$50 call is now US$0.35, so you can sell the stock at US$34.85 and buy back the call for a closed position at US$34.50 (34.85 – 0.35).

It is not worth waiting for the call to expire in September, in case we see a market correction in September.

HelioStar Metals

^{Recent Price: CA$2.32}

^{Entry Price: CA$2.20}

^{Opinion: Buy}

Since I suggested averaging down from CA$2.86 to CA$2.20 in late June, the stock has been moving up nicely. Yesterday, Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTCQX; RGG1:FRA) announced the commencement of mining at the Veta Madre pit at the company’s 100-per-cent-owned La Colorada property earlier this week.

Charles Funk, chief executive officer, commented: “The restart of open-pit mining at La Colorada is another important milestone for Heliostar. This progress is part of our corporate plan to secure cash flow through 2027 and 2028 to support construction at Ana Paula. We see production from Veta Madre as a critical part of that plan. Gold production is moving from the innovative approach of stockpile-and-injection leaching that has driven our current production to stacking higher-grade new gold ore for production starting next year. The company has designed a larger pit than detailed in the 2025 technical report as a result of our recent exploration drilling campaign. Called the Veta Madre Plus pit, it targets an additional 20,000 ounces of gold beyond the current reserve. We see significant potential for additional growth at La Colorada and now have a steady production base from which we can continue to expand the future of the mine.”

La Colorada mine details:

The La Colorada mine hosts reserves of 376,000 ounces of gold grading 0.68 gram per tonne in

17.1 million tonnes of ore. The current technical report and operating plan for the mine show a six-year mine life averaging 46,100 ounces of annual gold production.

Within the larger reserve, the Veta Madre pit hosts 48,000 ounces of gold grading 0.71 gram per tonne in 2.1 million tonnes of ore. Through the first half of 2026, the company completed a drill campaign at the Veta Madre Plus pit area and is targeting an additional 20,000 ounces of gold beyond the current reserve base in the currently planned Veta Madre Plus pit.

The operation is currently producing gold from injection leaching and is on track to meet its production guidance of 20,000 to 22,300 ounces of gold in 2026.

The stock has moved up through first resistance and is now above the 200-day MA. The next resistance is around CA$2.70 and should be reached soon.

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Important Disclosures:

1. Ron Struthers: I, or members of my immediate household or family, own securities of: Heliostar. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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Struthers Resource Stock Report Disclosures

All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.

( Companies Mentioned: DXYZ:NYSE, HSTR:TSX.V; HSTXF:OTCQX; RGG1:FRA, SPMC:TSXV;SPMEF:OCTCQB, )

Source: https://www.streetwisereports.com/article/2026/08/28/newsletter-writer-backs-high-grade-gold-exits-space-play.html