The Critical Investor reviews the latest updates with Alianza Minerals Ltd., including their closing of a CA$750K private placement.
As Alianza Minerals Ltd. (ANZ:TSX.V; TARSF:OTCQB) is looking to do at least 2,000m of diamond drilling at their fully owned Haldane Silver project this year, they needed to fill up the treasury before the winter break was over, and it appeared they did that just in time. On May 19, 2022, they announced the closing of a financing of CA$750K, consisting of 10M shares with a half three-year warrant, with an exercise price of CA$0.125 until May 19, 2025. It was good to see Chairman Mark Brown buying 1.7M shares again, topping up to an impressive 13.2M shares, almost 9% of outstanding shares. This financing was the first step, with another one sufficient to fund the Haldane program to follow. Being a hybrid prospect generator, they have other projects in the works as well, paid for by JV partners.
The company is eying potentially up to five different drill programs this year at their various projects, as the optioned out (Allied Copper) Klondike and Stateline copper projects in Colorado, operated by Alianza, are both in the targeting phase now, with drilling likely to start in July. Coeur Mining, which has optioned the Tim Silver project in the Yukon, has notified Alianza Minerals that the results of the 2021 program have been compiled, and once Alianza has reviewed the data, a news release will detail the results of that work. Alianza expects to hear more about 2022 activities in early summer. The Twin Canyon gold project in Colorado also has seen its fair share of prioritizing drill targets, and a drill permit for a 10-hole RC drill program is also expected in June. Alianza has the intention to seek a partner for this drill program.
As a reminder, this is why Alianza thinks there is great potential, as the Haldane area very much resembles the geological make-up of the eastern part of Keno Hill, containing several significant high-grade silver deposits and mines:
Recent exploration of the past few years by Alianza has focused on the Mount Haldane Vein System (MHVS), and considering high-grade results (HLD20-19: 1.78m @ 818g/t Ag and HLD21-24: 1.26m @ 3,267g/t Ag) at the West Fault target, management is narrowing its focus at this specific target even more:
According to CEO Weber, their insights on Haldane mineralization are improving, and they are looking to delineate a deposit here. He regularly talks to nearby exploring Alexco geologists, and they have confirmed to him that they are on the right track, as Alianza has hit the right type of geology, veins, and structures. Weber expects to drill further step-outs at the West Fault and Middlecoff targets around June, depending on the availability of drill rigs, and targeting for the Bighorn and Ross targets will be finalized in the spring, and drilling will probably commence later this year as it is a combination of crew and drill availability.
Alianza Minerals is working on a drill permit for Twin Canyon, which is expected within weeks, and are looking for a JV partner, with discussions still ongoing.
The latest financing is lower than expected, but nevertheless sufficient to provide adequate funding for Haldane drilling for this year. Besides Alianza’s flagship project, Klondike and Stateline copper projects in Colorado have drilling coming up for both projects this year. The Tim Silver project will very likely also see drilling this year by JV partner Coeur Mining. After the first CA$750k was raised, drilling at Haldane can begin soon, and I am curious if Alianza can expand the known mineralization into something significant, which leads to an economic deposit. But they have more irons in the fire for this year. Stay tuned!
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The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed, and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high-quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.
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The author is not a registered investment advisor, and currently has a long position in this stock. Alianza Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.alianzaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.
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