STK - Strickland Metals

Latest drilling results showing good grades of 6 g/t over 14m from Warmblood and open and improving at depth. Seems to be a bit of a holdup with the assays with 40 samples due to be processed. Have picked it again for this month hoping for a few good results in these assays.

Have had some drill results from Serbia, but there seems to be a bit of a delay with results from Yandal. Hoping for a few good results this month.

My last time tipping this in the competition after the pathetic performance last month. They must have a heap of drill results in the pipeline so hopefully we get some good news this month.

• Strickland Metals Rated New Speculative Buy at Canaccord

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Free tip sheet -East Coast Research's - latest pump.
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Excerpt:

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FWIW, East Coast Research is reloading its STK recommendation:

Update Note
Strickland Metals Limited (ASX: STK)

We update STK with a revised Target Share Price $0.416, this represents a total upside potential of 521%, reflecting significant increase from the current share price of $0.067 and an 48% increase from our Target Share Price from our initiation report from December this year. The company's continued exploration success at Rogozna has resulted in a substantial resource expansion, reinforcing its position as a leading gold explorer. The recent 1.28Moz increase in total resources marks one of the most notable organic exploration-driven upgrades in the sector. This growth highlights STK’s efficient exploration strategy.

Rogozna Resource Increases By 23% To 6.69Moz AuEq JORC 2012

Strickland’s premier Rogozna Gold & Base Metals Project, located in southern Serbia within the renowned Tethyan Metallogenic Belt, continues to impress. The project, recognised for its extensive magmatic hydrothermal systems, recently reported an Inferred Mineral Resource Estimate (MRE) of 6.69Moz AuEq JORC 2012 complaint. In addition, a strong exploration pipeline is in place, with 50,000 meters of drilling scheduled for early March 2025.

Balance Sheet Strength Fuels Aggressive Exploration Targets

Following the divestment of the Millrose Gold project, Strickland Metals continues to demonstrate strong financial resilience. At the close of the December Quarter, the company reported a cash balance of $13.68 million. Additionally, its holdings in Northern Star Resources now stand at 1,301,535 fully paid shares, valued at approximately $22.90 million with the stock trading at $17.60 as of end of February 2025—bringing total liquid funds to around $36.6 million. During the quarter, the company further enhanced its liquidity by selling 198,465 Northern Star shares, generating $3.46 million in proceeds. Meanwhile, exploration and evaluation expenditure reached $5.85 million, predominantly supporting activities at the Rogozna Project in Serbia and the Yandal Project in Western Australia. This robust cash position underpins management’s aggressive exploration strategy, which targets up to 80,000 meters of combined drilling across its two key projects by late 2025. With four diamond rigs already operating at the Rogozna site, the strength of the balance sheet provides confidence that the exploration programme can proceed without any material equity dilution, reinforcing shareholder reassurance about the potential of project development.

Huge Exploration Upside

We update our valuation for STK to $0.379 per share in the base case and $0.453 in the bull case with a Price/NAV of 0.16x. Although STK’s Rogozna Project is still in the exploration phase, the company’s market capitalisation of $147.90 million does not fully capture its strong balance sheet, high-grade gold resource, and exploration upside potential. The bullish outlook for gold, driven by central bank demand, inflation hedging, and geopolitical uncertainty, provides a favourable macroeconomic backdrop for STK. With $36.6 million in cash and Northern Star shares, STK is fully funded to execute its aggressive 50,000m drilling campaign in 2025, targeting further resource growth beyond its 6.69Moz AuEq mineral resource. The company’s disciplined approach to exploration and potential resource expansion could unlock significant shareholder value. Risks include commodity price fluctuations, exploration results, and operational challenges, but STK’s strong financial position and growing gold inventory position it well for longterm upside.

25% up move by Strickland on Friday. Has moved well outside its line of downtrend resistance.
Still holding $33m cash end of Dec Qtr, plus some Northern Star shares, all from the sale of the Millrose tenement to NST but I'm put off by Serbia being the location of STK's current activities as I don't feel it's a politically stable or lawful country in which to operate? Haven't looked into it.

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Not Buying

WEEKLY

Email today from 'Shares In Value/ East Coast Research' including a pump interview with STK's M.D. Haven't bothered to watch it. Some accompanying blurb as a refresher:

"Throughout the discussion, Paul shares important updates and insights across the portfolio:

✔ Rogozna: World-Class Scale and Growth Upside

Currently hosting a 7.4Moz gold equivalent resource — placing it in the top 5% of global gold projects — Rogozna continues to deliver exceptional drill results, including 365.8m at 2g/t gold equivalent. Strickland is undertaking an aggressive 50,000m drill program in 2025, aiming to expand the resource towards 10Moz and uncover new high-impact discoveries like Kotlovi.

✔ Yandal: High-Value Gold Next to Operating Mills

Strickland’s 400,000oz resource at Yandal, adjacent to Northern Star's operations, positions it strategically for future monetisation. Following the $61M sale of a previous Yandal resource, the company is now advancing mining studies at Horse Well and ramping up exploration, targeting further resource growth with 20,000m of drilling planned.

✔ Strong Balance Sheet Fuelling Expansion

With ~$33.8M in cash and shares, Strickland is fully funded for its 2025 exploration plans. Five rigs (soon to be six) are active at Rogozna, and a steady newsflow of drilling results, resource upgrades, and project studies is expected throughout the year."

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Have considered a buy from time to time, given it's location and profitable sale of one tenement containing an Au resource to nearby Northern Star. Has other tenement blocks contiguous to the one sold, e.g 'Horse Well'

finicky said:

Have considered a buy from time to time,

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I made some beer money from STK last November ....... They have plenty of Gold to dig up it seems. Looks a decent/lower risk Stock to buy/accumulate on any decent retracements (8cents maybe this time ??) as long as the POG stays solid. (PS Not trading advice ... Ive been making pretty ordinary decisions for the last 2 years, lol!)

Another STK pump from Shares In Value/East Coast Research.
They value it @ 0.52
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Strickland Metals (ASX:STK)

"We update STK with a revised Target Share Price $0.529, this represents a total upside potential of 340.6%, reflecting significant increase from the current share price of $0.120 and an 27.1% increase from our Target Share Price in our last report from February 2025. STK’s continued exploration success at its flagship projects, Rogozna and Yandal, has led to significant resource growth, reinforcing its position as a leading gold explorer. The recent Mineral Resource Estimate (MRE) upgrades at both projects reflect ongoing, exploration-driven value creation. This momentum, combined with the recent strategic placement with Zijin Mining, underscores STK’s disciplined exploration strategy and robust financial position.

Rogozna’s Shanac Deposit Expands to 5.30Moz AuEq
Strickland’s updated resource model for the Shanac deposit has increased the total to 5.30Moz AuEq, lifting the Rogozna Project’s overall resource to 7.40Moz AuEq, a 40% increase since its acquisition in July 2024. The updated Mineral Resource Estimate (MRE) reflects a 15% increase in contained metal, with notable gains in gold, copper, and zinc. The improved resource model, coupled with a 50,000m drilling campaign underway, positions Strickland to further expand its resource base, particularly with high-grade mineralisation remaining open for future development. With strong financial backing and ongoing exploration, Strickland is well-placed to drive long-term value from the Rogozna Project.

Yandal’s Resource Base Grows 56% Following New Horse Well Finds
The updated Mineral Resource Estimate at the Yandal Project has increased the total resource by 56% to 400.4koz Au, driven by a significant 97% increase at the Horse Well Gold Camp. With mineralisation remaining open along strike and at depth, and additional high-grade intercepts outside the current resource estimate, Strickland is poised to continue expanding its resource base through ongoing drilling. The recent metallurgical testwork has also de-risked further exploration, positioning Yandal for long-term growth as gold prices rise.

Strategic Placement with Zijin Mining Strengthens Strickland’s Growth and Exploration Capabilities
Zijin Mining’s A$5 million strategic investment provides a strong endorsement of Strickland’s 7.4Moz AuEq Rogozna Project and brings on board a globally respected partner. While modestly dilutive, the placement benefits significantly strengthens Strickland’s balance sheet and provides funding to accelerate exploration at Rogozna and advance development at the Yandal Gold Project, supporting the Company’s long-term growth strategy.

Stock Rerating Driven by New Discoveries and Upside Potential ... continues .."

finicky said:

Another STK pump from Shares In Value/East Coast Research.
They value it @ 0.52
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Strickland Metals (ASX:STK)

"We update STK with a revised Target Share Price $0.529, this represents a total upside potential of 340.6%, reflecting significant increase from the current share price of $0.120 and an 27.1% increase from our Target Share Price in our last report from February 2025. STK’s continued exploration success at its flagship projects, Rogozna and Yandal, has led to significant resource growth, reinforcing its position as a leading gold explorer. The recent Mineral Resource Estimate (MRE) upgrades at both projects reflect ongoing, exploration-driven value creation. This momentum, combined with the recent strategic placement with Zijin Mining, underscores STK’s disciplined exploration strategy and robust financial position.

Rogozna’s Shanac Deposit Expands to 5.30Moz AuEq
Strickland’s updated resource model for the Shanac deposit has increased the total to 5.30Moz AuEq, lifting the Rogozna Project’s overall resource to 7.40Moz AuEq, a 40% increase since its acquisition in July 2024. The updated Mineral Resource Estimate (MRE) reflects a 15% increase in contained metal, with notable gains in gold, copper, and zinc. The improved resource model, coupled with a 50,000m drilling campaign underway, positions Strickland to further expand its resource base, particularly with high-grade mineralisation remaining open for future development. With strong financial backing and ongoing exploration, Strickland is well-placed to drive long-term value from the Rogozna Project.

Yandal’s Resource Base Grows 56% Following New Horse Well Finds
The updated Mineral Resource Estimate at the Yandal Project has increased the total resource by 56% to 400.4koz Au, driven by a significant 97% increase at the Horse Well Gold Camp. With mineralisation remaining open along strike and at depth, and additional high-grade intercepts outside the current resource estimate, Strickland is poised to continue expanding its resource base through ongoing drilling. The recent metallurgical testwork has also de-risked further exploration, positioning Yandal for long-term growth as gold prices rise.

Strategic Placement with Zijin Mining Strengthens Strickland’s Growth and Exploration Capabilities
Zijin Mining’s A$5 million strategic investment provides a strong endorsement of Strickland’s 7.4Moz AuEq Rogozna Project and brings on board a globally respected partner. While modestly dilutive, the placement benefits significantly strengthens Strickland’s balance sheet and provides funding to accelerate exploration at Rogozna and advance development at the Yandal Gold Project, supporting the Company’s long-term growth strategy.

Stock Rerating Driven by New Discoveries and Upside Potential ... continues .."

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Any idea why this has a MC of just $360m with a gold resource base of 7.4Moz AuEq? And, obviously going to get even bigger by the end of the year.

DEG went for $5b with 11Moz.

Perhaps grade. AuEq grade is OK at 1.2 g/t but Au only grade 0.62 g/t. But, it's a porphyr so that might be good.

Polymetallic hard to process? But, they're claiming good test work.

Serbia??

@Sean K I've considered a buy at times following the lucrative sale of the Millrose tenement to Northern Star and considering it has other tenements adjacent with resources but fwiw the Serbia project turned me off because of a vague sense I have of sovereign risk. Actually I can't think of any overseas goldie that's gone well for me. I made a bit of profit from KCN and WAF but both accompanied by disappointments and obliterated anyway by losses from the likes of SSR. So not a very scientific case for rejection of STK by me.

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@Sean K I think of Serbia as a hyper nationalistic country with a bent towards fascism. The war with Croatia and the war crimes remains in memory. How are they going to treat a foreign gold miner if the mood swings that way again?
As usual I've found a question to AI on google gives me an adequate overview, although I accept it's not up the alley of at least one intolerant prig.

AI Overview

"Mining in Serbia, particularly the controversial Jadar lithium project, is considered to have high sovereign risk due to strong public opposition, environmental concerns, and potential legal challenges. The project faces significant resistance from local communities and activists, and the government's handling of the project has been criticized, raising concerns about transparency and rule of law.

Elaboration:

Public Opposition:
Widespread protests and resistance from local communities and activists have plagued the Jadar lithium project, raising concerns about the project's viability and the government's ability to manage social and political risks.

Environmental Concerns:
The project has faced strong criticism regarding its potential environmental impact, including damage to groundwater, soil, biodiversity, and the creation of hazardous waste.

Legal and Regulatory Issues:
There are concerns about the transparency of the licensing process and whether the project complies with Serbian and EU environmental standards.

Political Instability:
The handling of the project by the Serbian government, including potential political interference and pressure on judicial authorities, has raised questions about the stability of the regulatory environment.

Government Response:
The government's decision to revive the Jadar project after initially canceling it, despite continued public opposition, has fueled skepticism about its commitment to environmental protection and the rule of law.

EU Involvement:
The EU's support for the Jadar project, even amidst strong local opposition, has been criticized as treating Serbia like a "colony" and raising questions about the EU's commitment to environmental protection and democratic principles.

Gold Repatriation:
Serbia's decision to repatriate all its gold reserves, citing global uncertainty, highlights concerns about the country's stability and its ability to safeguard its assets.

In summary, the combination of strong public opposition, environmental concerns, and potential legal and political risks associated with mining projects in Serbia, particularly the Jadar lithium project, contribute to a high sovereign risk assessment."

And ..

"What's the problem in Serbia?
Corruption and Lack of Transparency in Government

Transparency International, through its Corruption Perceptions Index, reported high levels of corruption in the country despite the government's self-professed commitment to fight it. Retaliation against government officials who exposed corruption occurred.
Serbia - United States Department of State

State Department
https://www.state.gov › reports › serbia"

finicky said:

@Sean K I think of Serbia as a hyper nationalistic country with a bent towards fascism. The war with Croatia and the war crimes remains in memory. How are they going to treat a foreign gold miner if the mood swings that way again?
As usual I've found a question to AI on google gives me an adequate overview, although I accept it's not up the alley of at least one intolerant prig.

AI Overview

"Mining in Serbia, particularly the controversial Jadar lithium project, is considered to have high sovereign risk due to strong public opposition, environmental concerns, and potential legal challenges. The project faces significant resistance from local communities and activists, and the government's handling of the project has been criticized, raising concerns about transparency and rule of law.

Elaboration:

Public Opposition:
Widespread protests and resistance from local communities and activists have plagued the Jadar lithium project, raising concerns about the project's viability and the government's ability to manage social and political risks.

Environmental Concerns:
The project has faced strong criticism regarding its potential environmental impact, including damage to groundwater, soil, biodiversity, and the creation of hazardous waste.

Legal and Regulatory Issues:
There are concerns about the transparency of the licensing process and whether the project complies with Serbian and EU environmental standards.

Political Instability:
The handling of the project by the Serbian government, including potential political interference and pressure on judicial authorities, has raised questions about the stability of the regulatory environment.

Government Response:
The government's decision to revive the Jadar project after initially canceling it, despite continued public opposition, has fueled skepticism about its commitment to environmental protection and the rule of law.

EU Involvement:
The EU's support for the Jadar project, even amidst strong local opposition, has been criticized as treating Serbia like a "colony" and raising questions about the EU's commitment to environmental protection and democratic principles.

Gold Repatriation:
Serbia's decision to repatriate all its gold reserves, citing global uncertainty, highlights concerns about the country's stability and its ability to safeguard its assets.

In summary, the combination of strong public opposition, environmental concerns, and potential legal and political risks associated with mining projects in Serbia, particularly the Jadar lithium project, contribute to a high sovereign risk assessment."

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"Gold Repatriation:
Serbia's decision to repatriate all its gold reserves, citing global uncertainty, highlights concerns about the country's stability and its ability to safeguard its assets"
Seriously mr AI? .

qldfrog said:

"Gold Repatriation:
Serbia's decision to repatriate all its gold reserves, citing global uncertainty, highlights concerns about the country's stability and its ability to safeguard its assets"
Seriously mr AI? .

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I just believe Mr AI is just reflecting a viewpoint which is more than slightly biased here..

Could be @qldfrog but I'm not seeing that interpretation of the gold repatriation as the main issue. Actually my uneducated opinion is that gold repatriation is a good move for any country. But the vibe I get is that Serbia is not safe to invest in.

qldfrog said:

.. which is more than slightly biased here..

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"more than" cancels out "slightly"
Better would be:
" .. which is biased here"

finicky said:

Could be @qldfrog but I'm not seeing that interpretation of the gold repatriation as the main issue. Actually my uneducated opinion is that gold repatriation is a good move for any country. But the vibe I get is that Serbia is not safe to invest in.

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Let's just say not an unconditional friend of the west
As any other BRICS or country Nato or the US bombed to ****..what a surprise...

@finicky @qldfrog they're claiming it's a "Tier One Mining Jurisdiction" but I think those operating in West Africa say the same thing. Not too many coups in Serbia of late I suppose.