Strickland Metals (ASX:STK) Delivers Another Thick Gold Hit: Buy Before the Resource Upgrade or Wait?

Strickland Metals keeps hitting thick gold at Shanac ahead of the resource update

Strickland Metals (ASX: STK) just dropped another set of impressive drilling results from its Shanac gold project in Serbia. The latest hole hit 113 metres of gold mineralisation grading 1.7 grams per tonne, with a richer zone inside running 28 metres at 2.7 grams per tonne. These are the kind of wide, consistent hits that get gold investors excited, and they keep coming month after month.

The timing matters here. Strickland Metals is expected to release an updated resource estimate for Shanac later this quarter. If these strong results translate into bigger resources, it could be a major catalyst for the share price. With the stock already up strongly over the past year and analysts targeting around A$0.53, the key question for investors is simple: do you buy now ahead of the news, or wait and see?

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Why Shanac Looks Like a World-Class Gold Discovery

Shanac sits within Serbia’s Tethyan Belt, a geological region known for hosting giant gold and copper deposits. What makes this project stand out is its combination of size and grade. The deposit currently holds 5.3 million ounces of gold equivalent, but importantly, it remains open in all directions. That means there’s room to grow.

Strickland Metals has seven drill rigs working around the clock on the project right now. This is the biggest exploration push the company has ever undertaken, and they’re clearly betting big on finding more gold. The consistent results suggest this confidence is well-placed.

For investors, the key point is this: each new drilling result confirms that Shanac isn’t a one-hit wonder. The mineralisation is thick, continuous, and predictable. That’s rare in exploration and suggests the upcoming resource update could deliver meaningful growth.

The Numbers Behind the Bull Case

Strickland’s financial position looks solid heading into this catalyst period. The company has about A$42 million in cash, which means it can keep drilling aggressively without needing to raise money and dilute shareholders. For a junior explorer, that’s a big advantage.

The analyst community is firmly in the bull camp. Both analysts covering the stock rate it a Strong Buy with a target price of A$0.53. With shares currently trading around A$0.21, that represents roughly 150% upside from current levels. While analyst targets don’t always pan out, this level of conviction suggests professional investors see real value here that the market hasn’t fully recognised yet.

The broader gold market is also working in Strickland’s favour. Gold prices have been strong, which makes deposits like Shanac more valuable and increases the chances of attracting a larger mining company looking for their next development project.

The Investor’s Takeaway for Strickland Metals

We think Strickland Metals offers a compelling opportunity for investors who can handle some risk. The combination of a near-term catalyst, strong drilling momentum, and analyst support creates an attractive setup.

However, this isn’t without risks. Serbia is a less familiar jurisdiction than Australia, which adds some uncertainty. And with the stock having already run hard from its 52-week low of A$0.057, expectations are elevated. If the resource update merely meets expectations rather than beats them, short-term holders could be disappointed.

Our view: this is a quality gold story with genuine upside potential. For growth-focused investors comfortable with exploration risk, Strickland Metals deserves a closer look before that resource update drops. The next few months could be pivotal.