Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. KRO offers a USD $450 Annual Individual Membership. This Discovery Watch session is available via YouTube or Podcast.
Opus One Gold Corp was introduced to DW in March 2017 as a proxy for a potential area play surrounding Osisko Mining's rethink of the Windfall gold project in the Urban-Barry area of Quebec. Although a greenstone belt this area unlike the Abitibi was not know for robust orogenic gold systems. Windfall was as an erratic gold system which yielded high grades but the zones did not hang together well. The Osisko team felt that Windfall was in fact a mis-understood Timmins style system, and undertook a massive drilling campaign which figured out the plunge of the vein systems, chased them deep, and eventually delivered a 6 million oz plus resource. Osisko started this during a bear market and there was a flurry of activity in adjoining juniors, but that didn't answer the question of whether Osisko had turned Windfall into something new and important on a regional scale rather than a local scale. Osisko had staked land to the east, surrounding the Fecteau project which Opus had optioned because of its apparent VMS potential. Opus itself was created to host a group of properties optioned from Adventure Gold before Probe Metals absorbed Adventure to get at the Val D'Or East project. The lack of visible skin in the game by the board of Opus was because they were custodians for hidden Quebec players. I turned Opus into a canary that served as a local proxy for the Windfall area play and a broader proxy for the Quebec resoruce sector. Opus One went from a tweety bird to near dead canary when Windfall failed to excite beyond Osisko and results of work done at Fecteau failed to excite the hidden shareholders. In early 2019 Opus optioned the Noyell project on the Casa Berardi Break east of the old Vezza Mine where Opus owned the Vezza North and Extension properties. Opus One's geologist Pierre O'Dowd was behind this project; a decade ago he had worked on it for a junior that used it as stepping stone for something "better" in Africa, and pulled the plug on the exploration strategy. Opus resumed that strategy in March 2020 with a 10 hole drill program but only got 2 holes done before Quebec pulled the plug on exploration due to Covid-19. This was a big disappointment because the Noyell target can only be drilled in winter when the swamp is frozen. When the holes were reported in early July and showed that the iron formation system was robust at depth and continued to the east if the IP survey is to be trusted, this near dead canary dragged itself off the cage bottom. Fecteau will only get some till sampling this summer, and even if it gets a couple holes to spend the flow-thru money, it would be very lucky to tag into a VMS zone right away. So this stock's market action will be about the resumption of drilling in January 2021 at Noyell, and thus it is now serving as a proxy for the awakening of a resource junior bull market. (Jul 15, 2020)
Disclosure: JK owns Cons Woodjam and Opus Gold; Cons Woodjam is a Bottom-Fish Spec Value Favorite, Northern Superior is a Good Spec Favorite; Opus One is Bottom-Fish Spec Value rated.