Today, we are lucky to have Spearmint Resources CEO James Nelson with us and want to thank you for joining us. The company is a Canadian junior minor that owns a number of properties and that is executing on a multi-faceted growth strategy.
- Spearmint Resources owns a portfolio of strategic resource assets that are in various stages of discovery and we are favorable on the diversity of the portfolio. Can you please tell our readers about the company and the properties that it owns?
A: Spearmint Resources is a Canadian junior resource exploration company dedicated to the aggressive pursuit of world class mineral deposits. The company is focused on assembling a portfolio of low risk, high reward properties at the exploration stage and developing them so as to maximize shareholder value. Several upcoming project milestones including multiple near-term work/drill programs make this an exciting time period for Spearmint’s corporate growth potential. Spearmint has a robust portfolio of twelve projects focusing on a basket of resources which include Gold, Lithium, Cesium, Platinum/Palladium (PGM’s), Silver, Copper, & Vanadium.
- Out of the projects that Spearmint is focused on, which are expected to be the most significant value drivers for the business and why do these assets stand out?
A: There are many exciting developments coming ahead for the Company. Gold has recently broken out to all-time highs. Many junior mining stocks have also broken out on strong volume and Spearmint will be very active on multiple projects in September and throughout the fall. With a current market capitalization of under ~$10 million, you can see why management is so excited for the coming months with so many potential value drivers ahead.
In Nevada, Schlumberger Limited (NYSE: SLB) is currently drilling the Clayton Valley deep brine lithium area directly bordering Spearmint’s ‘Clayton Valley Lithium Prospects’. Spearmint is about to commence a multi-hole drill program imminently on its Clayton Valley Lithium Project to test the known claystone hosted lithium mineralization within Spearmint’s McGee claims, upon which, previous drill results have intersected Lithium values as high as 1670 ppm Li.
Another company making headlines for their Nevada Lithium presence is Cypress Development Corp. (CYP-TSX.v), a company that Spearmint directly borders, and shares the same lithium claystone deposit with. Cypress has gone from a share price low of under $0.10 in March 2020 to a recent high of $0.55 in August 2020, giving Cypress a market capitalization of approximately $50 million. With its recent share price surge driven by the fact that Cypress has just announced a 55% increase in their lithium mineral resources from its Clayton Valley Lithium Project in Nevada which targets the lithium clay formation. Cypress now has a measured resource estimate pegged at 3.3 million tonnes of lithium carbonate equivalent (LCE).
Spearmint Resources has received permits for a work program to begin immediately on the 100% owned ‘Goose’ Gold Project directly bordering the discovery made by New Found Gold (NFG.v). New Found Gold had recent drill intercepts of 92.9 g/t Au over 19.0m which was one of the best drill intercepts globally in 2020, and Spearmint’s Goose Project is the closest company to these drill holes.
The much-anticipated IPO of ‘New Found Gold’, which began trading on August 11, 2020 was priced at $1.30, giving the company a market cap of ~$185 million out of the gates. Since its IPO less than a month ago, NFG has traded as high as $2.56 (with a market cap of over ~$350 million) in anticipation of the potential results which could come from the 100,000-metre drill program that is currently underway.
Similarly, work programs are planned to also begin shortly on Spearmint’s ‘Perron-East Gold Project’ in the direct vicinity of Amex Exploration Inc. (AMX.v) who has an approximate $260 million market capitalization versus Spearmint which is currently under $10 million market cap.
Another company in proximity to Amex, Starr Peak Exploration Ltd. (STE-TSX.v), has already enjoyed a substantial move in its share price. In 2020, STE has gone from a share price of just over $0.30 in April with a market cap of ~$6 million, soaring to an all-time share price high of $2.94 in September, giving STE a market cap of over $82 million in just over four months. This goes to show the potential of the area and of Spearmint’s Perron-East Gold Project
Management is very optimistic about the remainder of 2020.
- How does the management team determine the projects that are classified as primary or secondary? How many projects fall under each category?
A: Of Spearmint’s twelve highly-prospective projects, 4 will have near-term work/drill programs conducted on them beginning in September and throughout the remainder of 2020. Due to the fact that Spearmint has such an extensive and diversified portfolio of strategically located projects throughout North America, we consider the projects that we are currently working on to be the Company’s primary projects. Often, the projects that we choose to focus on are the ones experiencing regional excitement and a booming commodity price.
- Several of the properties that Spearmint owns are located near properties that have been the site of major discoveries. How does the data from other projects help de-risk the opportunity that is associated with Spearmint’s assets?
A: Sometimes the best chance to find a discovery is near a discovery. With this philosophy, Spearmint has been able to strategically acquire a robust and diversified portfolio of projects, directly bordering or in very close proximity to major discoveries. Data from our neighbors is strongly considered when deciding to enter a prospective regional resource play.
- From an exploration and mining standpoint what precious metals or resources is Spearmint focused on?
A: Clearly with gold prices spiking to all-times highs in 2020, Spearmint is focused on its gold assets which are located in close proximity to, or directly bordering, significant discoveries made by companies with much larger market capitalizations than our own. There has also been a resurgence of interest in companies that explore for and develop lithium, specifically in Nevada. One company who has been a great example of this recently is American Lithium Corp. (LI-TSX.v). A recent move in the share price from a low of $0.15 in April 2020 to a high of $2.99 by July 2020 goes to show just how much excitement and market interest there is in the resurgence of Nevada lithium companies. In addition, the fact that Spearmint’s first drill program in Clayton Valley was able to achieve results as high as 1670 ppm Li, is a very strong indicator that the phase-two multi-hole drill program can have similar success and go a long way towards defining a resource like that of our neighbor Cypress Development Corp. (CYP-TSX.v), who trades at an approximate ~$50 million market capitalization, more than 5 times higher than Spearmint’s.
- What are the most significant potential growth catalysts for Spearmint?
A: Drill results from our Clayton Valley Lithium Project, in addition to work programs results from our Gold & Cesium projects. Macro catalysts are also welcome, such as tailwinds from a very active and buoyant junior mining market and sentiment driving volume. Continued uptrends in precious metals and commodity prices.
- Governments across the globe are printing cash to support economies from the COVID pandemic. Where do you see the price of precious metals going over the next five years?
A: Given the uncertain global climate, we firmly expect to see a continued and steady bullish sentiment in regard to precious metals/commodity prices with an emphasis on gold, PGM’s, silver & copper. Furthermore, the fed has recently projected that they have no plan to raise interest rates for the foreseeable future therefore keeping upward pressure on gold prices.
Not to mention the fact that Electric vehicles (EV’s) are here to stay, which currently use lithium battery technology… One thing is clear, with Tesla recently becoming the most valuable car company in the world, Electric Vehicles (EV’s) are the future of global automobile transportation and the demand for EV’s will only get stronger. Tesla already has an operational giga-factory manufacturing its EV Batteries located in Nevada and has recently announced they plan to open their second major North American Giga-factory in Austin, Texas. Lithium is a necessity in Tesla’s current EV Battery technology.
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