Investors Pivot from Gold & Silver Into Other Mining Stocks

At the beginning of the year, the speculation that the price of precious metals would decline was all over the place. Gold and silver prices just didn’t do that well in 2021. When you consider the steep increases in price from 2020, there was simply no follow through.

And although there are positive expectations for the long-term performance in precious metals, it might take a little bit longer than most gold and silver bugs would have hoped.  

That’s why a lot of mining investors seem to be pivoting into some of the less visible metals companies like Copper and Zinc mining stocks.  

Case in point, there is one junior mining stock that has been making steady gains since August of 2021. This stock is York Harbour Metals, which trades as YORK on the TSXV and YORKF on the US OTC showed a dramatic increase recently when its shares soared to a 23.81% profit on its biggest day in over a year. 

The stock has been outperforming the S&P 500 for over a year and as such has high relative strength. However, the recent big win is not just because people began to notice its steady gains. The company announced its progress with their ongoing diamond drilling program.

York Harbour Metals (OTCMKTS: YORKF) 

The press release from the company provided an update on its Phase 3 diamond drilling program at the York Harbour Copper-Zinc Project (the “Project”) which is situated approximately 27 kilometers from the city of Corner Brook, Newfoundland.

Phase 3 Exploration Highlights

● Completed 28 NQ-size diamond drill holes totaling 4,980 meters; 

● 66 diamond drill holes for a total of 10,764 meters completed since July 24th, 2021; 

● Long delays at the assay laboratories;

● Analytical and assay results from Phase 3 drilling program expected shortly; 

● All Phase 1 and 2 drill core sample results have been reported;

● Encountered multiple zones of copper- and zinc-rich mineralization with attendant silver and cobalt within the Main Mine Area; and

● Phase 3 drilling results, based upon the visually observed VMS mineralization, will both confirm the earlier drilling results and extend the drill indicated mineralization both along strike and downdip.

“The analytical results from the Phase 1 and 2 drilling programs suggest that there may be several stratiform layers of volcanogenic massive sulfide (“VMS”) mineralization, some more copper-rich and others more zinc-rich. 

Also, given the structural setting within the property, there is good potential for structurally repeated zones of VMS mineralization within the favorable stratigraphic contact and across the width of the folded synform. 

Detailed advanced geophysical surveying and follow-up exploration drilling will facilitate assessing the property’s excellent exploration potential,” reads the press release the company issued.

Basically, it seems they’ve got the goods…  

Bruce Durham, the Chairman, goes on to say, “Phase 1 & Phase 2 drilling programs have successfully identified, delineated, and discovered several copper-rich and zinc-rich mineralization lenses in the Main Mine Zone. The systematic drilling in Phase 3 was to infill the Main Mine Zone and begin our expansion of the 400-meter strike length. With the Permit in place, we can aggressively continue our drilling program to further expand both along strike and at depth.”

Now why is this meaningful from an investment standpoint?  

Volcanogenic Massive Sulphide (VMS) deposits have been around for many centuries and have become a necessity for the global clean energy revolution. This is due to its high content of metals such as Copper, Zinc, and Lead in high degrees. In the present worldwide metal production, VMS deposits account for 22% of zinc, 9.7% of lead, 6% of copper, 8.7% of silver, and 2.2% of gold.

Although there are about six different types of VMS deposits, the VMS associated with York Harbour mineralization is the ‘Mafic Volcanic’ type. The ‘Mafic Volcanic’ shares similarities with host rocks, copper-zinc dominant mineralization, and other structural and alteration characteristics. As such, this type of VMS is also referred to as the ‘Cyprus-type’.

There are all sorts of fundamentals that make YORKF likely a good play in the smaller mining sector stocks, but I always like to look at the chart.  And watching a steady rise above a 50day moving average for nearly a year now is a very good sign for York Harbour.  

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