(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long MMV.V)
Several months ago, a long-time acquaintance brought a little gold company that I'd never heard of in South Dakota to my attention; Mineral Mountain Resources (MMV on the TSX Venture, last at $0.24). The asset of interest is 25 kilometres south of the Homestake District where its namesake mine produced a stunning 40+ million ounces of gold over a 125-year period from the "richest, deepest iron-formation hosted gold deposit in the world" (as quoted from the company's slide deck linked here... 152 million tonnes at 8.4 g/t Au).
Top-down (top left) and oblique (top right) views of the modelled magnetic bodies within the Rochford Project are shown below, followed by a "zoom in" on the Standby Mine target (bottom):
I should emphasize that this is a speculative venture, but historically I've found the best way to mitigate speculative risk is to get an entry price that is as low as possible. With MMV trading close to its lows of the year and on the cusp of drilling, I like the cost of entry. The stock trades around 50,000 shares per day on average, which means that buying or selling large positions in a hurry could be a challenge, but I've found that volumes tend to increase quite a bit when news starts to flow.
As it stands, I haven't come across a single person on Bay Street that is familiar with MMV, which is usually a good indicator that I'm early on a story. If the results from the initial drill program confirm continuity of mineralization down plunge from the known Standby Mine mineralization, the Rochford Project could attract real interest from the mining and investment communities given the size of the targeted magnetic bodies and Homestake-like geology. Sometimes new discoveries can seem to come from nowhere and that's often because they come from somewhere that no one else is looking... but if the results are good enough the market's eye always turns towards them in due course. Drilling should start later this month and the first batch of assays may be back before Christmas.