Moriarty is usually all about gold and silver, but mining stories in general attract his attention.
“No one understands rare earths. First of all, they aren’t rare and like 99.999% of ordinary people, I couldn’t name two or three of them if my life depended on it. We use them, we need them, China pretty much controls the market on them. That’s it, that’s all I know and I know more than most.
Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTC; 35D:FSEQB) just delivered the last of the 13 drill holes from the 2019 drill program consisting of about 2,000 meters of drilling. Like the majority of the rest of the holes in the program, the results were outstanding. Clearly no one understood them, the stock didn’t do anything.
But the 58 meters of 4.01% LREO is worth $484 USD in the ground. That’s about the same as 10 g/t gold over 58 meters. Any company drilling in Canada with those numbers would have a spurt of buying and probably double. But no one understands REOs so the stock price snores.” (Streetwise Reports)
Bob likes making money in the market and when he sees a company selling for 1/10 of 1% of “gross metal value in the ground of just short of $2.7 billion USD” he can’t help but be interested.
Add to that the fact Defence Metals ground is in British Columbia and the potential for explosive growth emerges.