Wallbridge Mining announced drill results for the Area 51, Tabasco and Cayenne zones at its 100%-owned Fenelon gold project in Quebec. The results of its 75km drill program are continuing to be released and are expanding the footprint and depth of the Fenelon gold system. Wallbridge represents a unique opportunity for investors to gain increased leverage to significant exploration upside which we believe could result in a +$500M ore body.
Coro announced an updated mineral resource estimate and strategy for its Marimaca copper project located near Antofagasta in northern Chile. The company has increased its total measured and indicated resources by 45% and its inferred resources by 585%. We note that the company has defined what we strongly believe is the best copper oxide project in the public domain, which will likely be highly sought after.
Aurion announced prospecting, trenching and channel sampling results from its 100%-owned Launi East project. A total of 544 trench channel samples and 91 grab and chip samples were taken from ten areas within Launi East. The company has also started its inaugural drill campaign at the project. We view these results favorably as they support our opinion that Aurion has the potential to discover multiple significant gold deposits on its large land package in Northern Finland.
FireFox Gold announced the first batch of assays (five out of nine holes, ~1,500m in total) from its phase 2 diamond drilling program at its 100%-owned Mustajärvi Gold project in the Central Lapland Greenstone Belt (CLGB), Finland. We view these results positively and believe they show both the scale and continuity of the system at Mustajärvi. In our opinion, the current pricing of FireFox does not reflect the potential of the company’s highly prospective 80,000 ha land package within the CLGB and the stock should re-rate on positive drill results.
Mako Mining released results from its ongoing 2019 infill drilling program at its 100%-owned San Albino gold project in Nueva Segovia, Nicaragua. The company reported assays for 40 holes out of its 242 diamond drill hole, ~11,000m drill program. In our view, we expect the stock to progressively re-rate as assays translate into ounces for the in-pit resource as San Albino advances towards production in H2/20.
SolGold announced that BHP has agreed to invest US$22M in the company by buying 77M new shares at 22.15 pence per share. This agreement makes BHP SolGold’s largest shareholder by a narrow margin, with a total ownership of 14.7%. We view this investment positively, as it refreshes their endorsement and allows for the Alpala project to be advanced. However, we note that additional financing, potentially in the form of a streaming financing, will be required to eventually develop the project.
Wallbridge is basically a completely new story that warrants your attention. Wallbridge is an exciting gold explorer/developer with its flagship asset being its 100%-owned Fenelon gold project in Quebec. The company’s stated goal is to produce free cash flow from operations and grow through effective exploration. Wallbridge aims to become a +60k oz Au producer within three years and a plus 100k oz Au producer within five years. In our view, the Fenelon gold project is the most exciting gold exploration play due to its high grades, size, and multi mine possibilities, which we will delve into in this report. We believe Wallbridge is in the process of drilling out what will become a +$500M ore body at Fenelon and thus would be an excellent acquisition for any producer at its present valuation of ~C$294M.
SolGold provided an exploration update on its Blanca Project in Northern Ecuador, located 8km north-northwest of its Cascabel concession (Figure 1). On the heels of encouraging rock chip sampling results, initial drill core visual impressions clearly suggest Blanca contains significant gold mineralization and we expect positive assay results to follow. It is worth noting that recent improvement in market sentiment towards base metal stocks (see SNL Base Metals Index) has not yet translated to SolGold’s share price.
Aurion released more positive drill results from its Aamurusko Northwest prospect on its wholly owned Risti Project in northern Finland. Drilling continues to intersect a thick high-grade, near-surface zone that appears to have the potential to grow into a significant deposit. We view these results positively and believe they increased the likelihood of a significant discovery causing us to boost our fair value estimate to C$3.25/sh (was C$2.75). With more drill results on the horizon and the company fully financed for 2020, we believe Aurion’s share price is poised to keep marching higher.
Lion One provided an update on its exploration progress on its 100% controlled Navilawa alkaline gold project in Fiji. Deep drilling along with the recently completed sediment sampling and ongoing geophysical work could enable the company to discover significant new gold zones in the Navilawa Caldera.