For mining investors, analysts and executives alike, little in the junior exploration market this year has generated much excitement.
Then along came Kelowna-based Colorado Resources' (CXO:TSXV) most recent discovery.
On April 25, the company released results from a discovery hole on its North Rok property in northwest B.C. The results were impressive – 242 metres of 0.63% copper and 0.85g/t of gold. Typically, a discovery of half that amount of copper is noteworthy.
The market responded quickly to the news. That same day, Colorado's stock jumped to $0.54 from $0.16 and more than six million shares were traded. And the climb didn't stop there: at press deadline, the stock was trading at $1.35, and more than 60 million shares had been traded.
In an interview with Business in Vancouver, Colorado CEO Adam Travis said he was so excited over the results he barely slept for two weeks. Only now is he "finally starting to come down to earth."
"I was sleeping maybe two hours a night," said Travis. "Then I'd wake up, send some emails and get back work."
Last weekend, the World Resource Investment Conference was buzzing with talk of the company's recent results. The Colorado Resources booth was consistently busy, and Travis participated in a feature talk as part of the conference's workshop series.
But, excitement notwithstanding, Travis remained cautious about labelling the discovery or his company an overnight success. Discoveries take time and often come after years of hard work by a company that has also endured some "miserable times."
"With this drill hole, most in the industry would say this is the best hole in a decade. It's been exhilarating, exciting and humbling," said Travis.
"But I've been up in that area for 25 years. Very rarely are these things an overnight success. I've held this ground off and on. I've personally had it, abandoned it and restaked it for someone else. These things are a team effort."
The company is awaiting more test results from North Rok and is planning to start drilling four holes on its Eldorado project, which is located next door to Imperial Metals' (TSX:III) Red Chris mine, also in northwest B.C.
Regardless of whether drilling on the Eldorado property bears fruit, Vancouver-based minerals analyst Eric Coffin said a find like the one on North Rok, if subsequent tests also show high levels of copper and gold, could help rejuvenate a stagnant market.
"It's one hole, and it takes lots of drilling to be considered a huge discovery, but if they do get more results like the last one, it's a $2 or $3 stock. That means a lot," Coffin told BIV.
"It means people around them can raise money easier. That's huge, if 20 or 30 firms start getting money. A discovery can absolutely start the market up."
