Sun Metals (TSX-V: SUNM) CEO Steve Robertson on Latest High-Grade Step-Out Drill Holes Showing Great Grades & Continuity at the Stardust Project in British Columbia
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Sun Metals (TSX-V: SUNM)(OTC: SMTTF), Mr. Steve Robertson. Steve, I know you're busy presenting out at the RBC get together. So thank you so much for taking some time. How are you?
Steve Robertson: I'm doing just great. Thanks, Gerardo.
Gerardo Del Real: Let's get right to the meat on the bone. The stock is down some 13% today on 2.2 million shares approximately that traded. I did not expect that considering that you just reported three holes of step-out drilling, and frankly the grades were great, continuity is excellent. You had 58 meters grading 2.49% copper, 2.61 grams per tonne gold, and 44.3 grams per tonne silver, or 4.54% copper equivalent in the 421 Zone at the Stardust project.
None of what I just said would have led me to believe that shareholders would have been as finicky as they appeared to be today. So let's get right to some of the questions that I've had floated to me, if you don't mind.
Steve Robertson: Sure, that sounds great.
Gerardo Del Real: First off, let's talk about the three holes that were reported. Your thoughts about the grades both in copper and gold terms and how you feel about the three holes that you did report on thus far?
Steve Robertson: Well, we're really pleased with the results. We released two holes that were undercuts underneath of the hole 421 that we released last year. So that was a 2018 drill hole that returned 4.99% copper equivalent over 100 meters. The two holes that we drilled immediately under that showed similar grades over at least that size of mineralization. So we were pleased that we were showing signs of continuity and continuation of the high-grade nature of the mineralization.
Then we also had a hole that was a 50-meter step-out to the south, which was quite a substantial step-out, and again 90 meters of similar grade and over great continuity. So we're really pleased with these results, and I think that was a great way to start off the drilling campaign.
Gerardo Del Real: I'm glad that you touched on the step-out drilling to the south because that's another question that I've had presented to me. There's obviously eight other holes that we are awaiting assays on, and holes 12 and 13 I understand are actually in progress. Are both of those things accurate?
Steve Robertson: Yeah, that's correct. We're on drill holes number 12 and 13 at this point in the program. I think that we've got a lot of samples that are in the lab and we'll have a nice, continuous stream of results that are going to be coming out over the successive weeks here.
Gerardo Del Real: Let's be frank, we talked a bit off the record, and I asked you that a lot of people were asking me where the remaining holes that are in the lab were drilled. You gave me a pretty precise response. I would love for you to repeat that because I think the approach to assays, results, and location of drill holes is something that is on the minds of a lot of, I want to say, the more impatient shareholders. I think the long-term shareholders amongst us understand that the best systems tend to be complex, they evolve over time. That's why it's called exploration drilling, but can you speak a bit to the location of the holes or the approach with the remaining assays and the holes that are being drilled now?
Steve Robertson: Absolutely. Yeah, we've been doing this for a long time, and both myself and our VP of Exploration, Ian Neill, are very disciplined about the way we like to approach exploration program. We talked a lot about how we were going to treat the data in this program, knowing that there was going to be a lot of anticipation of what the results are going to come back like. We decided that we were going to release the drill holes when they were complete, and by complete I mean when all of the surveys are finalized, all of the assays are finalized, and so on, we'll put all of the information related to the hole out there for the market to digest.
And so we're not going to be releasing drill holes that are partially completed. We've got the surveys done, but we don't have the assays yet. I don't think that makes sense. It's not consistent with our approach, and quite frankly it's a matter of a couple of weeks before or a few weeks before we get additional results out, and so those results will be coming out, and the drill hole locations will be coming out on a fairly regular basis going forward, and I don't think in the long run it's going to make a lot of difference to the long-term investors.
Gerardo Del Real: Perfect. Let me ask you this without asking you to be specific. Are you getting a better understanding of the geometry and orientation of the system?
Steve Robertson: Oh yeah, we absolutely are. With this first set of results that we've put out, we didn't feel that we had enough information in those three holes to be able to make a determination on the orientation of the system, but as we release successive results you can expect that we're going to have an orientation determined, and we'll be able to start to put out true widths on the mineralized intervals and that sort of thing.
Gerardo Del Real: Excellent. I couldn't help but notice that you touched on the elevated gold to copper ratio in the higher grade intervals in hole 19, SD429M. Can we talk about the metal zonation a bit?
Steve Robertson: Absolutely, yeah. We're not seeing a lot of localized metal zonation. That's really the only anomaly that we'd seen in the first four drill holes in this 421 zone. Overall, this system is so well disciplined. Go 2.2km to the south, and you get into the high-grade, precious metal, epithermal veins, and as you come to the north you get into the zinc, silver-rich, manto, chimney part of the system. Going further to the north you get into the copper, gold skarn part of the system. So that zonation is absolutely predictable, and it's showing us a nice linear trend going to the north.
On a localized basis, these systems are highly complex, and they're irregular, and you see things jigging and jagging all over the place on a localized system. I don't know if we can draw too many conclusions from the fact that we've got these two high-grade intervals that are in the hole that's a 50-meter step-out to the south, hole 429, and the gold to copper ratio is elevated, that's fantastic to see. Whether that trend continues or not, I don't know. It's only a 50-meter step-out, but it's interesting and something that we're certainly watching.
Gerardo Del Real: Fantastic. Steve, anything else that you want to add before I let you go? And I appreciate the response to all of the questions.
Steve Robertson: Yeah, no problem. We're very excited about this program. I think the guys on site are just doing a fantastic job of executing it in a very disciplined way. This is going to be an exciting year for us. We're looking forward to getting on with it.
Gerardo Del Real: Fantastic. Steve, thank you again. Appreciate it.
Steve Robertson: All right. Thank you, Gerardo.