Why I think Sienna Resources (OTC:SNNAF) is going to go is based on several reasons. They are just starting their work programs and traditionally are quite active with news. They are partnered with EMX and committed to fairly significant exploration programs.
The project data from EMX looks extremely good especially considering they also licensed the Kakuna project to PDM (Palladium One) which has tripled in price since they reported their drill results and resource forecast on their project. The Sienna Kuusamo project is adjacent and in the area of the Kakuna project and the mineralization on both projects is part of a 30km strike zone previously identified by EMX. While the info available on the SIE site and PDM site is decent, you really need to look over the EMX data to appreciate the value of these projects known as Kuusamo and Kaukua.
In addition to the Kuusamo project Sienna also has Bleka and Vekselmyr projects in Norway. These projects are Orgenic Gold Formations and known as folded nose formations. To understand what that means you have to think on a geologic time scale of a few billion years. Mineralization is formed on the same fault as a volcanic subduction plate and over the last few billion years the mineral heavy deposits are essentially rolled up into a tight formation. AKA, a folded nose formation. When identified it can produce very high grades of mineralization in relatively small areas along fault lines. While deposits are not currently proven, the formations exist on the two claims and this years work program should validate their worth.
In Canada, the Marathon North Platinum-Palladium project is one of interest as well. While I don’t know much about this one, other than it’s proximity to Generation Mining’s marathon claim, what stands out to me is the announcement from the company on October 14th that they were getting Flow Through funds. Flow through can only be used in Canada and I assume this is the project that will benefit from the additional financing. Generation Mining estimates the palladium reserves in the area to be over 8,668,000 oz.
Sienna is currently trading 8.5 cents on the Canadian side and 7 cents on the US. Having not really done any work yet this year it is near the bottom as far as I can tell. If they have success on the Kuusamo project similar to what PDM had then this is an easy triple, just like PDM. If they miss but get the success on any of the other projects it is a double or more. Looking at the royalty agreements with EMX the company has to spend a minimum of 250k on each of these projects to keep them in good standing with EMX which means there will be drilling in the future. I suspect there will be initial work programs to identify targets that will take us through to mid November at which time I expect multiple drilling programs to be announced. Based on the historic data available for these projects I would bet most of their targets have already been identified by EMX (For the Scandinavian projects).
First rule of penny stocks for me is to buy ones who haven’t run yet and this one definitely has not run yet.
Article written by ToastTurtle
