Crystal Lake Mining Corp (CVE: CLM.V) (OTCMKTS: SIOCF) sentiments and prospects in the mining industry have started edging higher following the conformation of a hydrothermal system at its key project. Exploration works at the Chachi Corridor at Newmont Lake Gold Corridor came out positive, showing the presence of high-grade gold, silver, copper, nickel, cobalt, among other metals spread over a massive area.
Crystal Lake Mining Stock Analysis
The discovery came just days after the mining and exploration company confirmed the copper-gold porphyry mineral zone as part of the Burgundy Ridge mineralization at the Newmont Lake project. The discoveries have helped strengthened the stock’s sentiments in the market, helping trigger a bounce back.
Crystal Lake Mining has been under immense pressure since the start of the second half of the year. The stock has lost more than 50% in market value amidst soaring short-selling pressure. However, if recent price action activity is anything to go by, then a string positive news could be the catalyst to help fuel a bounce back from current lows.
Newmont Lake Project is at the heart of Crystal Lake Mining prospects. The company is aggressively expanding known mineralization zones at the mine as it also continues to discover new expansive footprints. Two-diamond drill rigs at the Burgundy Ridge and the Gold Corridor Trend underscore the project’s tremendous potential in driving the company’s growth metrics and long-term prospects going forward.
The multi-element system discovery in Chachi Corridor is a major breakthrough for the company as it is the most underexplored area with tremendous potential. In addition, the discovery of high-grade nickel, copper, cobalt, and zinc was unexpected, all but validating the exploration works. Buoyed by the results Crystal Lake mining intends to carry out an aggressive exploration program to expand IP coverage as well as utilize Electro-Magnetic geophysics to study the area further.
In a bid to accelerate exploration works at the flagship project, the mining and exploration company has also moved to strengthen its balance sheet in the recent past. The company has already closed two private placements with strategic investors and in the process, raised $1.29 million in gross proceeds. Proceeds from the offerings will go towards the exploration program at the Newmont lake project as well as for general working capital purposes.
Crystal Lake Mining Peers
Just like Crystal Lake Mining, Bluestone Resources Inc. (TSXV:BSR) (OTCQB:BBSRF), is another small-cap mining stocks showing tremendous potential. The mining and exploration company owns one of the highest-grade underdeveloped gold projects set to go into production. With gold prices flirting with highs of $1400 an ounce, the company could be on its way for a big cheque as it eyes a production rate of 146,000 ounce per year.
Eldorado Gold Corporation (TSX:ELD) is another Canadian mining company with diverse gold and base metals mining and exploration projects. The company is currently working on projects in Turkey, Canada, Greece, Romania, and Brazil. In Canada, the company operates the Lamaque underground gold mine, which is in the process of expanding as it seeks to increase throughput from 1,800 tonnes per day to 2,500 tonnes per day.