Drills Start Spinning At Barksdale’s (TSX: BRO) San Javier Project

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Having accumulated millions in losses during exploration, Barksdale is starting a drilling program with the hopes this will turn their fortunes.

Latest drilling program

Barksdale’s (TSX: BRO) latest drilling program has the goal to realize the expanse and economic viability of the previously known work, and to test structures believed to contain high grade copper mineralization. If the results of this drilling program are reassuring, it might hint to a profitable future for Barksdale. Regardless of whether these profits will be realized in the long run or not, a positive finding may act as a catalyst to move prices positively.

Recent stock performance

Barksdale has been trading downwards to its lowest in the last year. Even after the announcement of the drilling program, the stock only rose slightly, indicating low investor confidence in the ability of Barksdale to come across significant findings. Since the announcement, Barksdale’s Sunnyside transaction with Regal fell through as Regal failed to obtain the number of votes necessary to move the transaction forward. Consequently, this has not helped the already declining share price bringing it to the levels that it is today.

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The future of the mining industry

With many technologies looking to change the world we live in, the mining industry will grow to keep pace with the growing demand for raw materials from these industries. The industry is projected to reach $2.4 trillion by 2025 with a CAGR of 7%. As industries like the electric car industry will expand, they will feed into this projection for the mining industry. Moreover, the mining industry is one that has been resilient even during trying times. Through the ongoing COVID-19 pandemic, countries ensured that their mining industry was the least affected by their policy as it provides raw materials for all goods and services required by them. Without this industry, the foundation of the supply chain of most other industries would be taken away.

The mining industry has proven itself to be resilient during difficult times.

Investment thesis

Investing in Barksdale can be compared to the likes of gambling. The odds are low that Barksdale will be a junior that sees significant upside in the future as is the case with most junior miners. Taking a gamble on Barksdale could result in a massive payday, however gambling is not everyone’s cup of tea.

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