Home » Drill Play » My best idea: The case for Aston Bay

The junior mining market is starving for new world-class discoveries.

Let’s take a look at some of the hot exploration plays over the past year.

All of the companies above still have more questions than answers. Yet the share price went ballistic in the euphoria/anticipation of “the next big thing”. The takeaway from the charts above is that the market is happy to pay up big time at the first signs of blue sky potential.

Enter Aston Bay (BAY)

BAY is an early stage exploration company looking for copper and zinc. They are way up north in the Arctic in Nunavut, Canada. Don’t let the location deter you – this area can work – they’re right next to the past-producing Polaris zinc mine that operated for over 20 years.

A little background

BAY’s main projects are their 100% owned Storm Copper and Seal Zinc. Back in 2016, Aston Bay inked an option deal with BHP Billiton (the world’s largest mining company) – the deal would have given BHP 75% interest in the project if they spent $40M in exploration costs over 9 years. The initial drill results were not great and BHP subsequently dropped the option.

Enter Dave Broughton

Just days after the BHP deal fell through, BAY made a move and landed Dave Broughton as their Chief Geologist. Broughton (of Ivanhoe Mines) is widely recognized as one of the world’s foremost experts in sedimentary-hosted copper deposits. Broughton co-discovered the world-class Kamoa deposit in the DRC and the Flatreef deposit in South Africa. Simply put, this guy is a beast. I can only assume he’s not out here in the Arctic with a podunk $20M market cap company for shits and giggles. I believe he’s here because he’s intrigued by the geology and thinks there’s a real shot Aston Bay is sitting on top of a giant deposit.

I’ll let Mr. Broughton explain the geology:

Moving forward

BAY should have an exploration plan out within a few weeks and should begin drilling mid-summer. I believe this will be the most anticipated drill program of the year. Retail interest is already starting to buzz after the MIF/PDAC conferences. The story is just getting out. You have a world-class geologist with a 100% owned, world-class target, in a mining-friendly jurisdiction.

BAY is currently sporting a measly $20M market cap. They are fully funded for the upcoming drill program. The share structure is not overly bloated, unlike the vast majority of junior companies.

 

As far as pure exploration plays go, this is as close as you’ll come to the market giving you a fat pitch. Make no mistake, this is a high risk, swing for the fences type of play, but the potential reward is enormous. I started buying when I first heard the story at 14 cents, and I’ve been adding on the way up. I fully expect this stock to be trading in the 40-60 cent range later this summer on anticipation of drill results. If they hit anything near what they’re looking for, well, you do the math. $20M MC with a ~$1B target. If you’re into exploration plays, this thing ticks all the boxes.

 

The above references an opinion and is for information purposes only.  It is not intended to be investment advice. As always, do your own research and due diligence and seek a licensed professional for investment advice.