As an emerging leader in the lucrative gold mining industry, Sidney Resources Corporation (OTC: SDRC) is well-known for its work on the Lucky Ben Mine Project – which is located in the Warren mining district of Idaho. With the company sharing that the mine contains extremely high grade gold, SDRC could be poised for significant growth in the future. Meanwhile, many investors are watching SDRC closely in anticipation of the testing of the company’s technology later this year. Considering the potential of this technology in disrupting the mining industry, SDRC stock could be one of the gold mining stocks to invest in for the long-term.
SDRC Stock News
The US Geological survey reported that the Warren mining district historically produced over 24 tons of placer gold and an average of 3 tons of Iode gold – totaling up to a market value of over $1.5 billion. In addition, the area has previously produced 22.5 tons of silver – which make up a total market value of around $16 million. As for the Lucky Ben Mine, the company previously operating the area reported it has average assay values of 0.2 to10.4 ounces per ton of silver and 0.1 to 13.05 ounces per ton of gold. With this in mind, investors are bullish on the growth potential of the ongoing project.
For years, the company has placed great emphasis on growing its mining claims in this lucrative area. In 2015, SDRC leased three patented mining claims and five unpatented mining claims for five years and later extended the lease in 2019. Pursuant to the terms of the agreement, SDRC can extend the lease indefinitely as long as there is ongoing production in the site.
To deliver on its production goals, SDRC has spent years investigating historical production data and reports. Through this research, the company identified 5 mine property groups with high grade gold and silver ore production as well as additional 30 properties that could prove lucrative in the future. Upon completing this research, SDRC set a goal to drill six holes. The company is already showing major progress with a completed 125 feet tunnel that directly connects to the old tunnel as well as multiple storage areas and an underground drilling pad.
In light of these efforts, the company recently announced impressive project results as it proved that the vein structure originally mined in the stope does in fact contain gold. SDRC reported a successful project given that all six holes intersected with this vein. Additionally, two holes proved even more profitable with assays ranging from .5 to 1 ounce per ton of gold.
Commenting on the project results, SDRC’s VP of operations – Dan Hally reported that the World Gold Council identifies a high-quality underground mine as ones that have “a gold ore density between 8 and 10 g/t”. Given that SDRC’s core samples show “a high assay result of 23.58 g/t and an average assay result of 8 g/t”, Hally is bullish on the company’s growth potential on account of its high quality mine.
Taking into consideration the company’s developments, SDRC intends to expand its projects and is already ongoing exploration work to capitalize on its potential. By Q2 2022, SDRC plans to add diamond drilling to some of its previously mined areas along with constructing a new tunnel 100 feet below the existing Lucky Ben Tunnel. These efforts are already positioning SDRC for further growth.
Aside from its operations, SDRC has also been developing a new technology – which could potentially revolutionize the mining industry. By utilizing laser technology, SDRC is designing thermal fracturing prototype units for different industries that require safe and efficient material extraction. This new technology will help decrease operation costs while simultaneously increasing yield productivity and enhancing safety.
To further enhance shareholder value, the company is currently undergoing a share reduction. Given that SDRC was established decades ago, the company now has over 200 non-active shareholders. The current share structure shows 319 million outstanding shares and a relatively low float of 101 million shares. Up till now, the company has already reduced OS by over 44 thousand shares – and continues to reduce outstanding shares even further – which will lead to a significantly lower public float.
*Updated April 20th
Delivering on its plans to develop a fiber laser-based mining equipment, SDRC has partnered with Raytheon ELCAN (NYSE: RTX) to manufacture the components required to advance this technology. At the same time, SDRC is also working with IPG Photonics (NASDAQ: IPGP) to finalize the testing of this device. Overall, it appears that SDRC is moving closer to producing its prototype having submitted a request for quotes from Raytheon regarding the components for its test prototype.
With this in mind, SDRC has filed a patent application with the US Patent Office covering a method and a device using fiber laser in fracturing and melting materials found in mining operations. If the technology proves effective, it has the potential to reduce mining time and costs – making SDRC’s technology a lucrative investment. Furthermore, SDRC is exploring it applicability to construction, defense, disaster recovery and even search and rescue.
Commenting on its decision to develop its fiber laser-based mining equipment, the company shared that it believes “the technology will reduce the cost of mining, improve safety, reduce time requirements, reduce the impact on the environment and expand the ability to mine narrow vein deposits.”
At the same time, SDRC is continuing its preparations in the Lucky Ben Mine by evaluating a location near high production mines to potentially stake a claim on this location. In this way, SDRC could significantly increase its assets if this location is as profitable as its surrounding mines. SDRC is also evaluating two locations near its crew cabin and the Lucky Ben Mine for the placement of portable hydro-generators to provide continuous power.
Aiming to start diamond drilling in the Lucky Ben Mine soon, SDRC is working to finish exploring the Lucky Ben tunnel and start drilling. But to achieve this target, SDRC has partnered with Groundhog Mining and Milling Company to widen the tunnel by 5 feet through a slabbing process. Widening the tunnel will help SDRC accelerate its exploration and start diamond drilling in Q2 as planned.
SDRC plans to focus on the vein structure it identified through its diamond drilling program last year and will be able to complete daily testing to determine its gold values thanks to the mobile assay lab that Groundhog Mining and Milling Company will move on location.
In other news, SDRC’s permit application for its new access road has been approved for environmental assessment work by the US Forest Service. Once it receives final approval, SDRC plans to start construction depending on the timing. The company is also close to finishing its storage and office building at the Lucky Ben site which will reduce costs.
To facilitate its upcoming operations SDRC is having a private offering which it plans to conclude on June 1st. While it has already attracted a number of investors, it is using this time to finalize the paperwork and attract additional, interested investors.
With the company planning to start operations by June 1st, SDRC appears to be on track to achieve this target. Meanwhile, it has updated its website and laid the groundwork for the development of its new technology. As it builds and improves its test prototype, investors will have a better idea of what the future might hold for SDRC and its mining operations.
*Updated September 13th
With operations ongoing at the Lucky Ben mine, SDRC shared encouraging results of the testing conducted by Liberty Refiners for rare earth metals, gold, and silver. These tests showed extremely high gold grade values with an average of 6.3 ounces per ton. For this reason, SDRC intends to conduct further tests at the Lucky Ben mine to confirm these results. If confirmed, SDRC could become a major gold miner thanks to its gold’s high quality.
At the same time, the testing showed that all assays tested had gold, silver, and manganese. Considering that manganese is pivotal in the EV industry, SDRC could be well-positioned for significant growth in the future as EV metals the demand for EV metals far exceeds the current supply. In light of these results, SDRC stock has the potential to become one of the best gold mining stocks to hold onto for the long-term as the company continues conducting tests at its lucrative mine.
While the Luck Ben mine could prove to be extremely profitable for the company, many investors are more bullish on SDRC’s new technology which could revolutionize the mining industry. Already partnered with industry leaders to develop this technology, SDRC completed the optical bench for its fiber laser test unit as well as its framing. Moreover, SDRC is moving forward with the manufacturing of the fiber laser unit’s parts with the aim of testing this technology as soon as possible.
On that note, SDRC reached an agreement with the Colorado School of Mines to test its new laser mining technology. In collaboration with Mines’ team, SDRC will test the technology’s ability to cut, fracture, and spall the samples of geological materials. With the company planning for these tests to take place later this year, SDRC stock could be one to watch closely as it could soar on positive test results. In that case, SDRC could be well-positioned for significant financial growth as it could market its technology to other miners.
With this in mind, the company has held talks with state and federal government contacts in leadership positions to explore partnerships where SDRC could become a partner in the Energy Independence and Securities Act through its technology. Based on these plans, SDRC stock could be a bargain at its current PPS as these plans could send the stock to new highs if accomplished.
Meanwhile, investors are increasingly bullish on the technology’s upside potential since SDRC received confirmation from the USPTO for its provisional patent application to cover this technology. As the testing of the technology is approaching, SDRC could accelerate the process of getting its technology patented which would open a plethora of opportunities for the company. With miners becoming more aware of mining’s impacts on the environment, this technology could set SDRC apart from its competitors as it is able to thermally fracture or vaporize geological materials without harming the environment.
Considering the potential of such technologies in the mining industry, SDRC is currently exploring additional revolutionary technologies to eliminate mining’s impact on the environment. In light of this, SDRC stock could be one of the gold mining stocks to hold for the long-term.
SDRC Stock Financials
According to its Q2 financials, SDRC has $2.7 million in assets including $314.1 thousand in cash. With this in mind, SDRC appears to be in a strong position financially as the company reported $126.2 thousand in liabilities. Meanwhile, the company has not realized any revenues since it remains operating in the Lucky Ben mine. As for operating costs, the company incurred $337.6 thousand, however, SDRC reported a net income of $1.1 million resulting from $1.4 million reported as canceled stock for service.
Media Sentiment
@slfairless is bullish on SDRC potentially securing contracts with the government.
@AlanWeedspan is confident SDRC stock could be worth $.50.
Technical Analysis
SDRC stock is currently trading at $.1810 and has supports at .1696, .1363, and .1108. The stock also shows resistances near .1925 and 2597. While SDRC dropped to a new 52-week low back in July, the stock has rebounded significantly since then – climbing more than 100%. In the meantime, SDRC is retesting its MA support which is a key price level to watch. If the stock holds this support, SDRC could reach $.2. However, if SDRC drops below this support, the stock could retest its support near $.17 which could be a good entry point for bullish investors.
Considering the company’s potential with the Lucky Ben mine and its disruptive technology, accumulation is trending upwards as investors are bullish on SDRC’s long-term prospects. Meanwhile, the MACD is bearish, but appears to be approaching a crossover. The RSI is holding at 50 which could signal a run in the near future. In light of these indicators, investors could take a starter position at the current PPS and average up as the stock moves. SDRC has an OS of 306.6 million and a float near 104.9 million.
SDRC Stock Forecast
As the company continues operating at the Lucky Ben mine, SDRC has the potential to become one of the most profitable gold miners thanks to the high grade gold and silver available in the mine. In addition, the mine has manganese which is pivotal for EV manufacturing. Considering that the demand for EV metals exceeds the global supply, this endeavor could set SDRC up for significant financial growth.
Meanwhile, many investors are bullish on SDRC’s fiber laser technology which could revolutionize the mining industry. With the testing of this disruptive technology expected to be later this year, SDRC stock could soar to new highs on positive testing results. Considering the company’s talks with leaders in state and the federal governments to utilize its technology, SDRC could be well-positioned for a major boost in its financials if a deal with the government is secured. In light of this, SDRC stock could be one of the best gold mining stocks to hold onto for the long-term.
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