Anacortes is About to Turn Some Heads

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Disclosure: The following represents my opinions only. I am long XYZ.V (Image c/o imgflip)

I know that no one can see into the future, but sometimes I think I can see the shape of it if I squint just right. In this case, I thought I’d highlight this morning’s drilling update from Anacortes Mining (XYZ.V, last at $1.01). If you knew nothing about XYZ before you read this morning’s press release, assuming you even knew about the company (because why else would you read the news), the initial response might go something like, “Meh.” However, if you’d done a little homework and knew what you were looking at, the reaction might be a little more eyebrow raising; which is the situation I find myself in today.

This morning XYZ said that 860 metres out of a 3,000-4,000 metre drill program have been competed, consisting of holes ATC-500, -501, -502, and -503. If you read the news carefully, you will notice that one of those holes is not like the other. ATC-501 is a twin of hole “255”, a hole drilled by Barrick nearly 15 years ago, which bottomed in mineralization at a depth of just 265 metres. That hole returned 228m of 2.95 g/t Au. You could spend a while looking for a deposit that can produce a hole like that, and a little while longer looking for it in a company with a $50 million market cap, but I digress. Despite returning a sub-interval of 68 metres of 5.4 g/t Au in sulphides (from 197 metres to the end of the hole), hole 255 was never followed up on. Fast forward fifteen years and CEO Jim Currie’s stated goal was/is to test the depth extent of the mineralizing system at Tres Cruces… and now he’s reporting that the “twin” of hole 255, ATC-501, has been drilled to a total depth of 496 metres, a full 230 metres deeper than hole 255. On numerous webcasts over the last year or so, I’ve heard Jim say that he would drill the twin of hole 255 until he ran out of mineralization… and now here he is, saying the twin of 255 has been drilled to 496 metres. Hmmmmmm…

Now, for me to bust out the meme generator, I’m obviously hopeful… but I don’t care what day it is, what market we’re in, what the price of gold is, or which way the wind is blowing, XYZ is going to turn some heads when the assays come back from ATC-501. That day is coming, and on that day, even the most crusty mining guy will take notice. Where things go from there is anyone’s guess, but when was the last time you saw a junior gold company drill 400 metres of 2-3-4 g/t Au? What if some of those deeper metres encountered high grade structures (feeders) like the ones already known to exist on the property? For someone who’s been following along, this is all old hat, but for someone seeing this for the first time, Tres Cruces will look like it dropped in from outer space.

As it stands, XYZ already has one of the highest grade oxide gold deposits in the industry, but what lies beneath has always been a nagging question. The prospect of high-grade feeder zones has always intrigued me, but now Jim has hit Tres Cruces with the Truth Stick and assays are expected in July. In small cap gold land, sometimes the hardest part is just getting noticed — and I’d guess that something pushing a grade-thickness of 800-1000+ (?) gram-metres would turn some heads…

Time will tell.