Canterra Minerals (CTM.V) announced last week it received the initial results from an ongoing partnership with VRIFY’s Artificial Intelligence division, which helps exploration companies to define high-priority exploration targets. The AI-tool includes every piece of project data that is available and it is supposed to not only make the lives of the exploration teams easier, but also to do a better job of combing through high-volume data than any human being could.
As the Buchans database contains data from in excess of 400,000 meters of drilling with the core archive going back all the way to the 1920s, it was a good exercise for VRIFY’s AI-tool, which came up with two important new exploration targets (and two smaller targets). The image below shows all new targets and as per the legend, there are two specific areas at Lundbery and Nu that score very well on the prospectivity level (the white zones). Not only are those two ‘white zones’ surrounded by more pink and purple, the AI-tool also highlights the Maclean Target and the Clementine Target as very specific areas of interest.
The Nu target is particularly intriguing as historical data suggests very little drilling has been done on this target. It goes without saying this new target will be followed up on in 2025.
And it’s now abundantly clear Canterra will focus on the Buchans Critical Minerals project as it entered into an agreement with Teck Resources (TECK.TO, TECK) granting the later an option to acquire full ownership in Canterra’s Ring of Fire property, subject to a 1.5% NSR which will be retained by Canterra (of which 1/3rd is subject to a C$2M buyback). Teck is required to pay C$275,000 in cash to Canterra of which C$50,000 has already been received. The remaining C$225,000 cash payments will be collected as follows:
The ROI is likely pretty high for Canterra Minerals as the company staked these claims in 2023. Retaining a NSR also allows the company to retain some of the upside potential of the grassroots exploration property should Teck be successful.
Disclosure: The author has a long position in Canterra Minerals. Canterra is a sponsor of the website. Please read the disclaimer.
