Could Undiscovered Lucky Minerals (LKY: CN) be the Hottest Junior Miner in Ecuador?

• Ecuador is attracting hundreds of millions in investment dollars from top-tier majors, and the volume of deal flow in this region should catch the eye of any avid mineral investor. BPH, AAL, and NMC have all made efforts to take a stake in the region.

• Lucky's property could hold similar promise as this seminal find in the region. The company raised substantial capital already this summer and will continue exploration rapidly, reporting ongoing sampling and surveying results over the next 12-18 months. As things heat up and more information comes out about this underappreciated property, it may only be a matter of time before this virgin property sees its own investment from a major.

NEW YORK, NY / ACCESSWIRE / October 17, 2018 / Anglo American (AAL) has become the latest in a long string of miners to claim a foothold in Ecuador, and the deal flow here continues to impress.

The country has made headlines, slowly, as a key mining destination over the last few years, attracting hundreds of millions in new investment. This area is going from contrarian mining opportunity to mainstream as majors get involved. To name a few of the recent deals:

• Newcrest Mining (NMC) took a 14% stake in Lundin Gold (LUG), which plans to bring the Fruta del Norte gold and silver mine in southeastern Ecuador online in the next 12-18 months. Lundin Gold raised $400 MILLION to fund this project in 2017.

• BHP (BHP) now holds an 11% stake in SolGold (SOLG) to access the Cascabel copper/gold project after doubling down in October. Cornerstone Capital Resources Inc. (CGP.V) holds a stake in Cascabel as well.

• Anglo American (AAL) has now entered a joint venture agreement with Luminex Resources (LR) for three copper and gold concessions.

All of this is thanks to an improved regulatory framework and a big investor engagement campaign in Ecuador as the country opens up a promising mineral region to international firms and investors.

The number of un-partnered but explored properties is dwindling, and Lucky Minerals (LKY) could be the next big entrant as they begin to understand exactly what their property might hold. This company is exploring their promising Fortuna property, only 40 kilometers away from Lundin's Fruta Del Norte mine, and in October they released their first early exploration results with very promising findings.

Fortuna is promising partly due to its similarities to Fruta Del Norte. When this particular project was discovered by Aurelian Resources ten years ago, that undiscovered stock climbed from 50 cents to an astonishing $40. It was acquired for the equivalent of $25/share. That’s the kind of success story mining investors look for in their career - Lucky has the same kind of potential as they continue exploration at Fortuna and 2019 could be transformational for LKY and its investors.

Lucky's Fortuna Project Delivering Early Promising Results

Lucky Minerals acquired the promising Fortuna property only one year ago and have only just begun early exploration efforts. Fortuna is located about 40km from Fruta Del Norte in southern Ecuador. This region has seen an explosion in copper and gold mining projects over the last few years as the government has reduced the barriers to entry to foreign investors and mining companies. Fruta Del Norte, of course, has just gone through $400 million of financing to fund a huge mining expansion there.

In October, Lucky reported their first sampling outcomes from Fortuna, and it appears that they may be looking at a similar "halo" footprint as other world-class porphyry systems.

Fortuna 3, where this first sampling took place, is one of 12 contiguous concessions at the Fortuna property, where the considerable potential exists for finding meaningful porphyry and epithermal copper/gold mineralization. Preliminary assessment of over 150 samples from the area identified two porphyry systems with an extensive potassic signature. Lucky's exploration team believes that these two porphyry systems may form one single doughnut-shaped body measuring approximately 2km in diameter.

There's promising evidence that this could be a top-notch find, and Lucky will now commence more detailed airborne geophysics and preparation for a more aggressive grid-style sampling program along the two porphyry systems. Prospecting will get underway on the additional 40 km major regional NNE structure observed on the property.

This could be followed by exploratory drilling as soon as mid-2019.

Ecuador has long been a sought location, but it was essentially a closed system for the early 2000s. That has changed with a new presidential administration, and this region is seeing a huge influx of new investment as the government seeks to attract new money to this promising mineralized area.

You can see this in the smart money trends as majors put down roots across the country.

Lucky Minerals is a high-risk small-cap that could be worth nothing if they fail to find great mineral deposits or properly finance the business. The downside could be all the way to zero.

It's worth understanding the upside potential as exploration continues. Aurelian Resources was the discoverer of Fruta Del Norte ten years ago. Their public shares went from $0.50 to $40 at the time, culminating in being acquired at $25 per share. Ecuador shortly thereafter made exploration and mining cumbersome for the majors, with excessive taxes and onerous restrictions, but that's all changing now.

With names like BHP, AAL and NMC all getting in early, this could be one of the hottest regions of the next decade. LKY could be a strong contender for pursuit by a major partner with the right mineral results, and the coming 12 months could unlock considerable value for this undiscovered equity.

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