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What to expect (May 15)
👑 Bre-X 2.0: Manipulating assay results
✅ Monster Pick - Uranium giant growing in Sweden
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When I wrote about the biggest mining scandal of all-time, Bre-X, I talked about how fraud ushered in new standards in mining reporting, the introduction of the NI43-101 being the biggest update.
In the three decades since the scandal that inspired Matthew McConaughey's film 'Gold' came to light, the mining industry has yet to witness anything quite like it.
But that changed last week.
The Scandal
It started on May 1st 2024, when Red Pine Exploration (TSX.V: RPX) announced the withdrawal of assay results on it’s Wawa project in Ontario due to “inconsistencies”.
And not just a few results, - they withdrew all assay results dating back to their 43-101 report in June 2023.
Okay, weird.
Stock price dropped from $0.21 to $0.08.
More than half it’s market cap vanished in one day.
Investors were waiting for an update, speculating on the circumstances and people involved.
On May 6th, the company confirmed the assay labs, Actlabs, was not to blame for the results and everything they did was accurate and reliable.
This indicated to the market that something occurred between the assay labs sending the results to the company and their public release.
An update, but not the full story.
On Friday last week - we got the details.
Monster Stock Pick
District Metals (TSX.V: DMX) is led by an award winning CEO, has a massive Uranium resource and Sweden is about to ramp up Uranium production - what more could you want?
Why we like it ✅
Viken Deposit Size
The Viken Deposit boasts one of the largest undeveloped uranium and vanadium resources in the world, with historical inferred resources of 1.15 billion lbs of U3O8 and 16.7 billion lbs of V2O5.
Top Level CEO
CEO Garrett Ainsworth led discoveries such as the Patterson Lake South high-grade uranium field and the Triple R Uranium deposit. His leadership at NexGen Energy Ltd. & Alpha Minerals Inc. helped earn him the 2018 PDAC Bill Dennis Award and the 2013 AMEBC Colin Spence Award.
Sweden Uranium
With the anticipated lifting of Sweden's uranium mining moratorium and District Metals consolidation of of property across 10,812 hectares is setting up for a nice story amongst ongoing Uranium supply worries.
Stock Info
Ticker Symbol: TSX.V: DMX
Price: $0.42 (as of May 15, 2024)
Market Cap: $54M
Website: https://www.districtmetals.com
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The manipulation affected 532 out of 98,000 results, going all the way back to 2014.
The correct results were initially sent by ActLabs to Yarie, who then manipulated them before entering them into the company’s database.
“Unauthorized manipulation”
Holy fuck $RPX.V
— Mining Catalyst (@MiningCatalyst)
1:37 PM • May 10, 2024
According to Red Pine, Quentin Yarie was the sole person who received the assay results from the lab, which means he manipulated the results before bringing to his technical team and the board.
Slimey.
This does raise questions - was Quentin the only one to receive assay results in the 10 years? The company says yes, but I find that hard to believe.
This story is stil unravelling, so expect updates in the coming weeks.
Who knows what this will entail for Red Pine, but you can bet that Quentin Yarie will have the book thrown at him.
👋 Colton, Stock Monster.
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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. All content is based on public knowledge. We have not been compensated in any way for this pick or content; we genuinely just like it. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be biased, but not compensated to promote them.