Slam Exploration Piling Up Drill Results

Slam Exploration, admittedly an oddly-named company, has moved up along with many other gold juniors but not by that much. Its had its fluctuations, but not as wild as some others. This company has the knack, or the curse, of piling up solid drill results without the market noticing it that much. This offbeatedness could be because it has a little more than 189 million shares outstanding, but it's also due to company cautiousness.

It popped up today because of a very good drill result from its Reserve Creek project. Two holes' results were reported: the better had 14.9 m's worth of rock core with 7.33 g/t gold therein, and the worse had 6.40 m of 4.10 g/t gold. Both, if indicative of a fairly continuous deposit, make for mine-grade rock.

Of course, there are many drill holes like those two that don't lead to a mineable deposit. Those holes, though, aren't the only two. On January 21st, Slam reported two nearby holes that graded 4.99 g/t gold over 19 m and 3.30 g/t over 20.8 m. Unlike many of the other holes, these two were drilled some distance away from the main strikes shown on the drill map for Reserve Creek. The deposit isn't very sizable, but it's not small. The important point is, they found continuity some distance away.

Slam is a cautious driller, with several holes right next to each other in the gold-bearing zone. That isn't a good sign, despite it connoting thoroughness, as it suggests Slam geologists have some reason to be cautious about the deposit itself.

Here's the company's one-year chart, from Stockhouse, which shows a recent breakout:



The Moral Of The Story: A plodding stock often denotes a plodding company. Slam is plodding along with its Reserve Creek project, but it's racked up some good numbers with its drilling so far. The risk with such a company is the deposit being too small in volume to be minable.


Disclosure: None.