Muddy Waters Capital's Carson Block makes rare long call in Canadian miner Snowline Gold

Muddy Waters Capital's Carson Block, champion known for his short-selling campaigns, took an unusually bullish stance astatine the Sohn London Investment Conference connected Wednesday, pitching inferior miner Snowline Gold arsenic a apical takeover campaigner successful the mining sector.

Snowline, valued astatine astir C$2.1 billion, has made what Block called a "first-of-its-kind" find successful Canada's Yukon territory, a portion with constricted humanities accumulation but immense geological potential, helium said. The institution controls a ample onshore bundle successful an emerging territory that Block said could yet big a caller multi-deposit golden camp.

The absorption is the Rogue project's Valley deposit, which holds an estimated 8 cardinal ounces of golden successful the measured and indicated class astatine an mean people of 1.21 grams per ton. While Snowline has different exploration targets, Block said Valley is apt the plus that volition pull involvement from large producers facing declining reserves.

"This is 1 of the fewer assets globally that tin determination the needle for a mid- oregon large-cap golden miner," Block's presumption materials stated, calling the steadfast "an elephant."

Block expects Snowline to beryllium acquired wrong the adjacent 3 years. If a transaction comes successful the adjacent 12 months, helium sees a imaginable valuation of C$4 cardinal to C$6 billion, and suggested the terms could emergence further arsenic drilling continues.

"The longer it takes for this plus to beryllium bought, the much costly it volition be," helium said.

Snowline shares person surged much than tenfold since aboriginal 2022, erstwhile the institution drilled its archetypal find spread astatine Valley. Still, Block argued the banal doesn't yet bespeak the strategical worth of the assets successful a mining manufacture that has seen expanding consolidation.

The Canadian-listed banal popped much than 6% aft Block made his call.

Carson Block volition beryllium connected "The Exchange" with CNBC's Jon Fortt astatine 1 p.m. ET.