MMG announced high-grade surface results from its district-scale exploration program at the La Plata. Recent notes of good progress at its La Plata project. The program supported by geologists seconded from Newmont identified four new target areas Lower Boren Middle Bedrock, New Star and T29 Ext. The assay results were particularly notable at the Evening Star and Copper Age North targets where rock samples returned grades of up to 6.68% CuEq (7.38% Cu 3.0 g/t Ag) and 5.94% CuEq (6.2% Cu, 36 g/t Ag with Au and PGEs), respectively. Across the campaign, the top 30 samples averaged a robust 1.68’% CuEq, with multiple samples above 1% CuEq. These high-grade results materially strengthen the case for near-term drilling and underscore the underexplored nature of the broader La Plata district.
Earlier in the year, the discovery of light and heavy rare earth metals at La Plata further enhances its strategic positioning and enhances the value of the project. The Company expects an updated mineral resource estimate in 2025.
The flow-through private placement financing completed in August 2025 raised a total of C$8 million, including participation from Newmont. The funding will mainly support the development and exploration work at La Plata, Keno Silver and Klondike Gold projects.
At Keno Silver, the focus is on expanding resources, which include 18.16 million ounces of silver-equivalent from four deposits (Formo, Fox, Caribou, and Homestake). Over 40 additional targets have been identified and advanced on the project through surface sampling or drilling. Furthermore, the Company expects an increase in royalty production from Australia Creek operations and potential for new royalty agreements in 2025.
High potential for new discoveries and continued resource growth at both La Plata and Keno Silver, coupled with the anticipated increase in royalty production from Australia Creek operations, support a case for re-rating of the stock.
Investment Highlights
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- Metallic Minerals Corp. (TSXV: MMG) (“MMG,” or “Company”) has achieved multiple exploration milestones at its La Plata Copper Project and Keno Silver Project. The Company is now earning royalty monies on alluvial gold claims at its Australia Creek property near Dawson City, Yukon, in the historic Klondike gold district.
- Multiple new targets and robust assays position La Plata for resource growth: Robust high-grade surface results at La Plata materially enhance project visibility, with recent assays returning grades up to 6.68% CuEq. These high-grade results materially strengthen the case for near-term drilling and underscore the under-explored nature of the broader La Plata district. Additionally, the discovery of light and heavy rare earth metals at La Plata further enhances its strategic positioning and enhances the value of the project.
- Multiple near-term catalysts. An updated resource estimate at La Plata, incorporating platinum, palladium, and gold for the first time alongside copper and silver, is expected in 2025 and should materially enhance project scale and optionality. In parallel, results from ongoing resource expansion drilling at Keno Silver provide additional near-term news flow and potential for material resource growth.
- Royalty production to accelerate: Royalty operations are expected to deliver an uplift, with increased production anticipated at Australia Creek and discussions underway on additional royalty agreements that could further diversify and strengthen the Company’s cash flow profile.
- Based on our analysis and valuation models, we maintain our BUY rating and update our fair value per share estimate to $0.80 (earlier $0.57).
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report, which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report, accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations.
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Company-specific disclosures, if any, are below:
1.                   In the last 24 months, Couloir Capital Ltd. has been retained by the subject issuer under a service agreement that includes analyst research coverage.
2.                   The views of the Analyst are personal.
3.                   No part of the Analyst’s compensation was directly or indirectly related to the specific ratings as used by the research Analyst in the Reports.
4.                   The Analyst does not maintain a financial interest in the securities or options of the Company.
5.                   The principal of Couloir Capital maintains a financial interest in the securities or options of the Company through an affiliated hedge fund entity.
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