Bitterroot doubles on $5.2M Pentagon funding

Bitterroot Resources' shares on the TSX-V quadrupled on Tuesday following its US subsidiary, Trans Superior Resources, securing a $5.22 million government grant to boost exploration at the company's LM nickel-copper project in Michigan. The stock surged to C$0.16 per share at 9:45 a.m. in Toronto before settling at C$0.15 later in the day, marking an 82% increase. The US Department of War's funding will cover half the eligible costs, including drilling, surveys, permitting, labor, equipment, and travel.

Trans Superior, operating the LM project and owning 51% of the joint venture, will use the non-dilutive funds to lower its cost of capital and finance an intensified drilling program. CEO Michael Carr stated that the government support will enable the partners to resume an aggressive drilling campaign. The funding provides Bitterroot access to substantial exploration capital without issuing shares.

Previous exploration at the LM site involved 7,565 meters of drilling across 26 core holes to depths of 300 meters. Ten holes identified disseminated, semi-massive, or massive sulphide nickel-copper-platinum group metal mineralization, interpreted as a magma conduit. The company plans to commence a 15- to 20-hole drilling program in the December quarter, targeting holes ranging from 500 to 700 meters.

This campaign will delve deeper into the interpreted conduit, extending exploration below 400 to 700 meters and further probing the area where high-grade massive sulphide fragments were previously discovered. These fragments could indicate the presence of a larger mineralized system at depth. The LM project is situated in Michigan's Baraga basin, an area known for its nickel-copper mines, including Talon Metals' Eagle mine.