Strickland Metals Limited [ASK:STK] Update May 2025
Metals & Mining
Exploration Success and Resource Expansion at Strickland Metals
We update STK with a revised Target Share Price $0.529, this represents a total upside potential of 340.6%, reflecting significant increase from the current share price of $0.120 and an 27.1% increase from our Target Share Price in our last report from February 2025. STK’s continued exploration success at its flagship projects, Rogozna and Yandal, has led to significant resource growth, reinforcing its position as a leading gold explorer. The recent Mineral Resource Estimate (MRE) upgrades at both projects reflect ongoing, exploration-driven value creation. This momentum, combined with the recent strategic placement with Zijin Mining, underscores STK’s disciplined exploration strategy and robust financial position.
Rogozna’s Shanac Deposit Expands to 5.30Moz AuEq
Strickland’s updated resource model for the Shanac deposit has increased the total to 5.30Moz AuEq, lifting the Rogozna Project’s overall resource to 7.40Moz AuEq, a 40% increase since its acquisition in July 2024. The updated Mineral Resource Estimate (MRE) reflects a 15% increase in contained metal, with notable gains in gold, copper, and zinc. The improved resource model, coupled with a 50,000m drilling campaign underway, positions Strickland to further expand its resource base, particularly with high-grade mineralisation remaining open for future development. With strong financial backing and ongoing exploration, Strickland is well-placed to drive long-term value from the Rogozna Project.
Yandal’s Resource Base Grows 56% Following New Horse Well Finds
The updated Mineral Resource Estimate at the Yandal Project has increased the total resource by 56% to 400.4koz Au, driven by a significant 97% increase at the Horse Well Gold Camp. With mineralisation remaining open along strike and at depth, and additional high-grade intercepts outside the current resource estimate, Strickland is poised to continue expanding its resource base through ongoing drilling. The recent metallurgical testwork has also de-risked further exploration, positioning Yandal for long-term growth as gold prices rise.
Strategic Placement with Zijin Mining Strengthens Strickland’s Growth and Exploration Capabilities
Zijin Mining’s A$5 million strategic investment provides a strong endorsement of Strickland’s 7.4Moz AuEq Rogozna Project and brings on board a globally respected partner. While modestly dilutive, the placement benefits significantly strengthens Strickland’s balance sheet and provides funding to accelerate exploration at Rogozna and advance development at the Yandal Gold Project, supporting the Company’s long-term growth strategy.
Stock Rerating Driven by New Discoveries and Upside Potential
We revise our target price to $0.529, representing a 0.23x multiple to our NAV estimate, reflecting a substantial discount to the current trading price. This target price is driven by strong exploration results across key projects, including significant resource upgrades at Rogozna (7.4Moz AuEq) and Yandal (0.40Moz Au). Supported by a robust balance sheet and strategic funding from Zijin Mining, STK is well-positioned to continue advancing its exploration programs. The positive rerating reflects incremental milestones and exploration success, with additional updates expected in late 2025. Strickland remains on track to unlock substantial shareholder value as exploration continues to deliver strong results.