Nine Mile Metals(NINE.CN) announced in late September it has filed for drill permits with the New Brunswick Department of Energy and Mines for its initial phase 1 drill program at its California Lake VMS Project. The project is located in the world-famous Bathurst Mining Camp, New Brunswick. This project is a high priority for the company. The drill program is planned to explore up to 2,000m while utilizing the Lantech Drilling company track-mount drill rigs that are expected to arrive on site in October.

Company Overview

Nine Mile Metals is a junior mining exploration company headquartered in Vancouver, Canada. The company owns projects located in New Brunswick, including the Nine Mile Brook project, the California Lake VMS Project, and the Canoe Landing Lake West project.

Nine Mile Brook Project

The Nine Mile Brook project comprises 25.13Km2 of land. It is located 10 Km Southwest of the historic Brunswick 12 mine, known as one of the largest underground zinc mines in the world. 2 months ago, this project was identified as the company’s flagship project and recognized new high VMS priority targets. The company filed drill permits to drill up to 5,000 meters. Nine Mile secured 2 track mount drill rigs and will use two 12-hour drill crews per drill rig, resulting in a 24hr drill program field team on both rigs. This plan aims to achieve its exploration program goals more quickly and allow its assays to be submitted to the Certified Lab much sooner.

“The work program at Nine Mile Brook is progressing as planned. Data integration continues to define Priority Targets on the western flank of Brunswick #12. We look forward to expanding the footprint of the Lens Area mineralization with Stage 2 drilling while also discovering other VMS bodies at depth within the Priority Target Areas defined by EarthEX.” G. Lohman, B.Sc., P.Geo., Director, and VP of Exploration.

Nine Mile also discovered massive VMS source targets and new Spruce Lake formation target systems thanks to the UAV magnetics drone survey. It found 3 huge VMS source targets, 2 additional new Spruce Lake formation VMS target systems, and a host of high-priority lens targets. To accomplish all this work thanks to EarthEx Geophysical Solutions. A total of 1,000-line Kms survey grid flown at a line spacing of 25 metes has been done to cover the recently drilled lens. The drone used could define all geological structures, identify all structural mineralization folds in the system, and be integrated into the company’s evolving 3D project model.

California Lake VMS project

This project covers 24.42 Km2, immediately North of the Canoe Landing Lake Project. The land package includes 4 known base metal mineral occurrences (Cu, Pb, Zn). Historical work on the site showed a variety of VMS depositional styles, including disseminated and stringer sulphides in addition to massive, massive tabular sulphides as at the California Lake 32 South Zone when work done in the past showed values ranging from 7.86% Zn, 2.51% Pb, 73.9 g/t Ag and 1.41 g/t Au over 6 meters. On September 2022, the company announced it had filed for drill permits with the New Brunswick department of energy and mines for its initial phase 1 drill program. Nine Mile Metals targets to drill up to 2,000 meters, utilizing the Lantech Drilling company track-mount drill rigs due on-site during October.

Canoe Landing Lake West project

The property is located 10 Km West of Nine Mile Brook and covers 5.24 Km2. There, exploration will focus on finding targets along the north-trending sediments, volcanic and their contacts, the latter key to mineralization at the Wedge, California Lake, California Lake 68S, Wested (Tribag), and Lower Forty Mile Brook. The property is central to 9 occurrences/deposits, including 3 kilometers northwest of the Canoe Landing Lake Deposit (22.8 million tons), with geological reserves of 0.64% Pb, 1.82% Zn, and 0.56% Cu. 0.94 oz/ton Ag and 0.034 oz/ton Au and the historic Wedge Mine produced 1.5 million tonnes grading 2.88% Cu, 0.88 % Pb, 1.75% Zn and unspecified Ag credits. This will be accomplished by utilizing Cutting Edge 3D – AI Technologies and advanced modeling. Targets will be defined and followed up on the ground with detailed prospecting and soil geochemistry.

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Share Structure/Fundamentals

The company shared on August 24 its financial statements for the period ending June 30. On the balance-sheet side, the company had $99k in cash for $4.2M in total assets and $101k in total liabilities. The company had 53M shares outstanding, 13.9M warrants (avg. price: $0.51), and 4.6M options (avg. price: $0.24).

On the stock price movement, investors’ sentiment is optimistic. The stock is currently flirting with the 52-week high worth $0.33. Year-over-Year, it gave a positive return on investment of 67%. Not many companies were able to provide this return. In comparison, the CSE index gave a negative -56% return on investment year-over-year.

Bottom Line

Nine Mile Metals (NINE.CN) has many exciting catalysts, and investors understand them. With the work program at the Nine Mile Brook project progressing as planned, and the massive VMS source targets discovered, it could provide excellent results for the company and the shareholders. Drill permits for the California Lake VMS project are filled and should provide more upside to the stock price.

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