Company description

Inomin Mines Inc. (MINE.V)(FRA:IMC) is a mineral exploration company focused on the discovery of critical minerals, battery and precious metals. They own multiple assets, with two flagship projects: one is the highly prospective Beaver-Lynx magnesium-nickel-chromium-cobalt property in British Columbia, Canada. The second is the La Gitana gold-silver project with near surface disseminated and high grade gold-silver potential in Oaxaca, Mexico.

Inomin Mines is led by President & CEO John Gomez since 2017, who founded and managed private enterprises in mining, technology, and sports. Prior to being a founder of Inomin, Mr. Gomez founded and was president of a successful private gold exploration company in Colombia. Under his leadership, the company acquired strategic land and mining interests in some of the country’s top gold districts. Mr. Gomez is assisted by geologist John Peters for the Beaver-Lynx project, who has 30 years of experience, and is currently a geological consultant for Commander Resources and Fjordland Exploration. He worked for Homestake, and as a project manager during JVs with Sumitomo, Capstone and Gold Fields. In Mexico, Gustavo Allende runs the show for Inomin. Mr. Allende is a metallurgist and industrial engineer with 35 years of mining management experience in Mexico’s public and private sectors, lastly as the Director of Industry and Mining for the State of Oaxaca.

Although the most early stage of the two flagship projects, Inomin’s 100% owned all-season Beaver-Lynx property clearly has the most explosive potential (with exposure to the rapidly growing EV-battery metal sector), as the results of the first five drill holes at the Beaver area last year sent the share price from C$0.105 to C$0.72 in just one trading day at 30 March, 2022, on colossal volume (20.8M shares changed hands, the company’s entire free float). The recently enlarged 22,436 hectare project is a magnesium-nickel-chromium-cobalt property in mining-friendly British Columbia, Canada, located near the Gibraltar and Mount Polley porphyry mines. The highlight drill result was a 252m intercept from 40.5m depth, returning, 20.6% Magnesium, 0.16% Nickel, 0.33% Chromium and 0.01% Cobalt, generating an impressive gross metal value of US$750/t on average for the 5 drill holes. Historic drill holes collared 1-4km to the west confirmed more near surface magnesium and nickel at similar grades, with intercepts varying from 9 to 100.6m in length, indicating large scale mineralized potential. The nearby Lynx area is geologically similar to the Beaver discoveries, with even larger mineral targets.

The second flagship of Inomin Mines is the 100% owned 494 hectare La Gitana project in Oaxaca State in southwestern Mexico, located near the Arista and Mirador mines (Gold Resource) and San Jose mine (Fortuna Silver), all three being gold-silver mines. Substantial historical drilling has been done, as 8,230m of drilling over 38 holes was completed in 2005-2006 on the property by former co-owners Chesapeake Gold and Goldcorp. About half of the holes hit significant gold and silver mineralization, most starting close to surface, including the first hole that intersected an impressive 133.5m of 1.78 g/t Gold and 100.7 g/t Silver Given available drilling data, just 20% verification drilling (about 6 holes) would be needed for a NI43-101 compliant resource. Mineralization consists of gold-silver bearing quartz-breccia veins, quartz stockworks and disseminated gold-silver. As the deposit is located on a hill top, it indicates it should be conducive for an open pit operation with a low strip ratio. I estimate the mineralized potential at 500-600koz Au for now, and management thinks there is even potential for 1Moz Au as the deposit is open to expansion in all directions.

Inomin Mines intends to raise fresh money for further exploration, and at a current, very tiny market cap of just C$2.17M, management is careful not to dilute existing shareholders too much. The plan is to raise enough money to show the world the potential of Beaver-Lynx. If drilling is as successful as the last program, and market sentiment cooperates, the idea is to keep drilling at Beaver-Lynx and start exploration at La Gitana to provide more or less continuous news flow year round. With battery metals and gold/silver prices rising again, Inomin Mines seems to be positioned well for a substantial re-rating, especially considering the dramatic jump on the last drill results on Beaver-Lynx.

Share price Inomin Mines: