Inomin (MINE.V TSX) (IMINIF for Americans)
Up 257% Tuesday, 58% Wednesday and still very undervalued compared to its peers.
Inomin is a CAD $15 mil market cap mining exploration company that just released results from a maiden drill program of 5 holes totaling 716m on its Beaver property near Williams Lake, BC. This property has dirt road access and is only 20km from town. The best drill result is B21-02 containing 252 meters of 20.6% magnesium, 0.16% Nickel and 0.33% Chromium
Magnesium price per ton $6301 x 20.6% = $1298
Nickel price per ton $33,100 x 0.16% = $53
Chromium price per ton $12130 x .33% = $40
Total of $1391/ton of material
Now to estimate how many tons are possible on the property based on 5 maiden drill holes before expanding with more drilling. We only know 2 directions of the deposit, length and depth, which are both open to expansion. 5.7km total distance between hole 1 and 5, all holes ended in mineralization. Meaning even the smallest 64m hit of hole B21-04 could and most likely will be hundreds of meters too. Let’s use 252m for our depth estimate. We also don’t know the specific gravity on this type of rock yet. Most ore bodies range between 2.5 and 4. I will use the lower end at 3. For width I will calculate for one meter, for every meter it expands the value will multiply by that amount. Based on the ground magnetic surveys it looks to be over 100m width in some areas but completely unknown until more drills test.
5700m length x 252m depth x 1m width x 3 SG (converts meters to tons) = 4.3 million tons of material per meter of width.
4.3 million x $1391 = $5.981 BILLION per METER of width!
Every dimension is open in every possible direction. There’s potential to be $1 trillion USD of material in this deposit. It’s a once in a life time discovery and the market is taking its sweet time to price the discovery, who cares about magnesium right?
The play is to buy shares and HODL until buy out. Management will raise funds from issuing new private placements at higher and higher prices to prove out deposit and drill test every dimension of the ore body. A major will buy this out and develop it into a mine, for well over a billion US dollars.
Here is a post I like comparing this asset to another:
@Sleepydog So for comparison the Tami Mosi deposit of Western Magnesium … 412 million tonnes of 12% for 111 billion lbs of Magnesium …. I looked their drill results over for this 43-101 report and they were anywhere from 60m to 160m of that on avg 10 – 12% … the area of this drilling was no where's near the area of MINE's beaver drilling and our grades were almost double …. I believe we are looking at half a trillion to a trillion lbs of magnesium easily on the Beaver property at over $2 us/lb …. WMG (Western Magnesium) has 553 million shares outstanding and trading at a $240 million marketcap as of yesterday's close …. they have no where's near the grade or tonnage that MINE's Beaver property has so do the math on where MINE's share price should be in comparison …. people will say that is crazy but north of $10/share is reality in comparison with only 34 million shares fully diluted
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