| Ticker | Price (C)$ | Shares Outstanding (M) | 52 week price (C$) | WorkingCapital (C$M)* | Market Cap(C$M) | EV (C$M) | ||
| Basic | Fully Diluted | High | Low | |||||
| SAG | $0.50 | 37.4 | 45.3 | $0.65 | $0.24 | $4.0 | $18.7 | $14.7 |
*As at June 30th 2025 cash & equivalents were ~$1.5 M. On July 2, 2025 SAG closed a private placement for C$2.5 M
Investment Thesis
Earlier this year Sterling Metals (SAG.v), in their first ever drill program intersected 359.3 m of 0.36% CuEq at their Soo Copper project in Ontario. We believe the team is “dialed in” on the geological controls and expect the current phase II drill program to potentially better the previous results. The geophysics demonstrates scale and a drill target worth getting excited about in our view. At a ~$19 M market cap and ~$3.5m in cash, SAG is extremely cheap with a legitimate discovery under their belt in a top tier, infrastructure and mining friendly jurisdiction.
Highlights
- MJ-25-01 = 359.3 m of 0.36% CuEq: Earlier this year in May, SAG made a copper discovery on their maiden 2,000 m drill program. The discovery hole intersected mineralization from a depth of 14 m. More importantly, extensive bornite mineralization and potassic alteration were widespread throughout multiple lithologies. This indicates that the main part of the porphyry is near surface and SAG can now vector towards higher grades. Mineralization in multiple lithologies indicates potential for building scale and grade.
- Big Picture & Upside: Following up on the discovery hole, SAG drilled three additional holes intersecting mineralization in each hole including a 1 km step out hole demonstrating that the Soo Copper project is a copper system with significant scale over a multi-km trend. The resistivity data (Figure 1) collaborates this thesis demonstrating excellent correlation with mineralized zones seen in drill core. These targets have strike lengths of ~500 to 1,000 m and as deep as 800 m. As we have seen with certain discoveries such as Amarc Resources and GT Gold, geophysics can be a silver bullet at outlining the potential size of these systems.
Figure 1: Resistivity sections with drill holes overlain. Note, mineralization correlates well with resistivity lows and the multiple large untested anomalies indicating potential for additional porphyry centres.
- Has the source been located? Historic work was focused on the Jogran Porphyry which hosts a historic resource of 20 Mt at 0.19% Cu and 0.05% Mo. We believe previous operators were just on the shoulder of a major porphyry system based on the geophysics (Figure 2). Also, drilling has shown grades increasing at depth and in association with the resistivity lows indicates potential for a feeders system at depth. The Jogran porphyry results historically have been relatively low grade at 0.19% Cu but drilled in correlation with a moderate resistivity anomaly whereas SAG’s discovery hole, MJ-25-01’s, grades got higher at depth. This hole ended in mineralization with abundant bornite grading 26.5 m of 0.47% Cu. We have high conviction that mineralization will be extended down dip. Phase 2 drill program (3,000-5,000 m) is currently underway prioritizing multiple near surface porphyry targets but also a large resistivity anomaly at depth that could be the main source/feeder.
Figure 2: Phase 2 drill program will be testing near surface porphyry centres but also a potential source at depth.
In Conclusion: At less than $20 M market cap, a high-profile management team, and high conviction targets being drilled currently, we believe Sterling Metals offers a favourable risk-reward profile ahead of a potentially transformational discovery.
Catalysts
| Catalysts | |
| Late Q325 | Initial drill results from phase II drill program |
| Late Q323 | Results from re-interpretation of geophysics and re-logging |