July 2019

Gold – Golden Summer Conference

We believe that a new bull market has started in gold. This along with investor interest, caused us to host a pair of gold conferences in New York and Toronto, last week. Each conference was opened by Derek Macpherson, VP Research at Red Cloud, highlighting why we believe we are in a new bull market, and 3 keys to investing in it (link). Followed by presentations from Tonogold Resources (OTC:TNGL), Brixton Metals (TSXV:BBB), Mawson Resources (TSX:MAW), Fiore Gold (TSXV:F), Minera Alamos (TSX:MAI), NxGold (TSXV:NXN), Gran Colombia Gold (TSX:GCM), Orford Mining (TSXV:ORM), Pacton Gold (TSXV:PAC), Aquila Resources (TSX:AQA) and RNC Minerals (TSX:RNX).

SolGold Plc (TSX:SOLG; LON SOLG) – On the Path to a PFS; Still Discounted Value

Impact: Mildly Positive SolGold has announced a positive work program for its Cascabel project where we are expecting Mineral Resource Estimate (MRE#3) later this year. With a recent PEA under its belt, SolGold appears to be undertaking extensive work programs to move the project one step closer to production. We continue to view Alpala as a world class project which the company is actively improving with ongoing development work.

Mawson Resources Ltd. (TSX:MAW) – New Discovery at Hut; Potential Scope Change

Impact: Positive Mawson has released assay results from three holes, which yielded another high-grade discovery within the company’s Rajapalot Project in Northern Finland. We are encouraged by Mawson’s ongoing drilling success and continue to believe that the company is likely to at least double the resource at Rajapalot.

Orford Mining Corp. (TSXV:ORM) – Smoke Everywhere – Fire Not Far Behind

Orford provided details for its upcoming 2019 summer exploration program at its wholly owned Qiqavik property, where the company has potentially discovered a new gold belt in northern Quebec. We view Orford as an inexpensive call option on a highly prospective district scale exploration play and believe the company could re-rate on the first hint of drilling success.

GT Gold Corp. (TSXV:GTT) – Saddle North Grows Towards Surface

Impact: Mildly Positive GT Gold released assay results from six holes at its 100% owned Saddle North deposit located in BC, which highlight the potential for an initial open pit operation. This would be additive to our block cave only preliminary estimate of a 14.2Moz AuEq resource grading 1.31g/t AuEq. We continue to believe that GT Gold has made an exceptional porphyry gold-copper discovery, which we believe is being ascribed very little value by investors in GT’s current share price.

Pacton Gold Inc. (TSXV :PAC) – Almost Ready to Drill Red Lake

Impact: Mildly Positive Pacton has released preliminary surface sampling results which returned high-grade gold values from the Boyden target. Together with geophysical analysis, Pacton is quickly advancing its Red Lake project to be drill ready for later this summer. With exploration targets on two different continents and C$5.55M of funding in place, we expect exploration to be value creating for shareholders

Fiore Gold Ltd. (TSXV:F) – Better than Expected FQ3/19

Impact: Mildly Positive Fiore has delivered another record quarter a its Pan Mine producing 11.6 koz Au in FQ3/19. Importantly, the company has started stacking crushed ore, which should lift the production rate. We believe that Fiore is set to become a +100koz by 2022, as steady operations from Pan are combined with organic growth from Gold Rock. As a result, we expect the stock to materially re-rate over the next 6-12 months.

Brixton Metals Corp. (TSXV:BBB) – Deep Hole Hits at Thorn

Impact: Positive Brixton has announced results from the Thorn Project where it hit 555m at 1.97 g/t AuEq. We are particularly encouraged by the presence of mineralized porphyry clasts within the hole and evidence of multiple styles/pulses of mineralization. These results suggest Brixton is getting closer to a significant porphyry discovery at Thorn - more follow up drilling is required. Based on these results, we are incorporating Thorn in our valuation (previously zero value ascribed), increasing our fair value estimate to C$0.40/sh (was $0.28/sh), reflecting a 10% chance for a significant porphyry discovery.

Uranium Update – 232 Decision: Positive for Everyone but U.S. Miners

The official decision on 232 was announced on Friday night. In our view this is positive for the overall uranium market, as we believe its resolution should allow utilities and producers to enter into long-term agreements, which should push the uranium price higher. While positive for the overall market, the premium that U.S. producers and developers had acquired over the last ~18 months is likely to come out of the market.

Pacton Gold Inc. (TSXV :PAC) – Advancing Towards a Discovery

Impact: Mildly Positive Pacton has released promising prospecting results from its Friendly Creek tenements whereit appears to be closing in on a vein hosted gold target. Pacton recently announced its 2019 work program encompassing plans for the Red Lake Gold project in Ontario as well as the Boodalyerrie, Yandicoogina Gold Projects in the Pilbara which we expect to provide steady news flow in the near term. With exploration targets on two continents and C$5.6M of funding in place, we expect the coming season to be value creating for shareholders.