Stallion Discoveries (TSXV: STUD, OTC: SLLGF, FRA: HM4) is a Canadian mining exploration company focused on discovering uranium, precious metals, and critical minerals in Saskatchewan, Idaho, and Nevada. Since the beginning of 2023, the company has announced several news, including changing its name and acquiring new projects (Hathor and U92 projects). Investors understood the real opportunity in investing in the company as the stock price jumped from $0.11 (December 11, 2022) to $0.36  (February 13, 2023).

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Sector Overview 

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Uranium has emerged as a key solution for western nations due to the need to move toward energy independence and more environmentally friendly energy sources. Uranium is used to produce nuclear energy, a clean energy source with no emissions that helps to maintain air quality. The Nuclear Energy Institute (NEI) estimated that in 2020, the United States prevented more than 471 million metric tons of carbon dioxide emissions. That is more than all other clean energy sources put together and is the equivalent of taking 100 million cars off the road. In addition, to put that into perspective, you would need more than 3 million solar panels or more than 430 wind turbines to generate the same amount of power as a typical commercial reactor (capacity factor not included). Exploring the Athabasca Basin (Northern Saskatchewan) means prospecting the second-producing region in the world (13.2% worldwide market share), which returned grades 10 to 20 times higher than the global average. 

The company is also exploring the top-ranked mining jurisdictions of Idaho and Nevada. There, prominent companies made consequent investments such as Kinross Gold, Perpetua Resources, and I-80 Gold. 

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Company Overview 

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Stallion Discoveries owns 100% of 8 promising uranium projects, all located throughout the Athabasca Basin in Saskatchewan, totalling a covered area of 78,831 hectares through 23 mineral claims. The company has a more significant focus on the Western side, where Stallion detains 67,957 hectares, and will evaluate and prioritize a work program commencing on the claims during Q1 2023. 

On January 6, the company had bought 6 mineral claims totalling 29,273 hectares to U92 and 17 mineral claims covering 49,558 hectares to Hathor Exploration. This combination resulted in creating a sizable continuous claim block measuring 35,875 hectares in the productive western side of the basin, which shares a significant boundary with Fission 3.0's PLN project and the most recent ultra-high-grade discovery. The five projects in the Western Athabasca Basin, which cover 67,957 hectares, are connected by the large block, which serves as their anchor.

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"The Athabasca Basin is home to the world’s foremost high-grade uranium discoveries. Having had first-hand experience in the discovery of the Roughrider uranium deposit, I am excited by the Company’s acquisition of these highly prospective claims,” added Mr. Stephen Stanley, Advisor to Stallion. “Through the acquisition of these two land packages Stallion has inserted itself into the heart of one of the most active areas in the basin,” commented Stallion’s CEO, Drew Zimmerman.

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The company 100% possesses the Horse Heaven project, located in Valley County, Idaho. It consists of 699 unpatented federal mining claims and covers 5,817 hectares. It is neighboring the Perptua Resources Stibnite Gold project, which returned significant data. Stallion Discoveries’ project returned 1.03 g/t Au. 

About the Richmond Mountain project, it consists of 117 claims covering over 955 hectares in the prolific Battle Mountain-Eureka trend, located directly east of the Ruby Hill property owned by i-80 Gold and about 1 km east of Eureka, Nevada. In the Eureka district, two types of mineralization predominate: the first one is the older Carlin-style mineralization that overprints, the older polymetallic mineralization, and the second one is younger polymetallic mineralization that developed in skarn and replacement bodies near early Cretaceous igneous intrusions.

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Share Structure/ Financials 

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The company is well-funded and has a strong share structure. According to the financial statements released for the period ending September 30, 2022, the company had $1.7M in cash for no debt and had small expenses, as Stallion Discoveries only spent $184k for the last quarter. The next financials will include the amount paid to Hathor ($400k), the transaction of $300k, and the issuing of 3M shares for U92 shareholders. 

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Regarding the share structure, Stallion Discoveries has 63M shares issued and outstanding, no warrants, and only $1.65M options at a weighted average exercise price of $0.345. The stock price had a huge run over the last month, thanks to the management board's positive initiatives to grow the company. Up 200% month-over-month, it is traded at $0.36 (January 23, 2023) and is on track to reach its 52-week high of $0.36. 

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Bottom Line

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Stallion Discoveries (TSXV: STUD, OTC: SLLGF, FRA: HM4) shared several updates since the new year, exciting investors. Its impressive land packages in Canada and the USA will help the company discover uranium, gold, and precious metals. The upcoming work program at the Athabasca Basin is one of the many catalysts we could witness in the future.  

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