We believe that we are in a new gold bull market, as evidenced by negative real and nominal interest rates and over US$5.5B in funds flowing into physical gold ETFs. Our view is that smaller companies outperform in a bull market. Three keys to look at when investing in junior gold equities include scarcity, catalysts and potential.
Mawson Resources Inc.
Mawson Resources Limited is a sustainable and ethical exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold-cobalt project in Finland, a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland’s current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.
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).
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.
Impact: Mildly Positive
Mawson has released its last assays from the Raja prospect from the winter drill program, which have extended the high-grade zone down plunge. We are encouraged by Mawson’s ongoing drilling success and continue to believe that the company should at least double the resource at Rajapalot.
Introducing our inaugural Exploration Preview, which focuses on names within our coverage universe with drill bit torque. We review the exploration potential and try and quantify the potential impact on the share price should the company be successful in delivering results. We believe that exceptional drill results can create value regardless of where we are in the commodity cycle. Our top ideas are highlighted in Figure 1 below and will be presented in a similar alphabetical order within this document, bifurcated for precious and base metals focus.
Mawson has released promising results from the South Palokas target where drilling has extended the mineralization 140m down plunge from the current resource outline. We are encouraged by Mawson’s ongoing drilling success and continue to believe that the company should at least double the resource at Rajapalot while still having room to grow.
Mawson has released more positive exploration results that confirm our view that the resource is poised to double after this year’s drill program, with room to grow. Today’s results were highlighted by a significant step-out drill hole from the Palokas deposit at its Rajapalot project in Finland. This news supports our thesis that Mawson is poised to realize significant resource growth that does not yet appear to be priced into the stock.
Mawson has released more positive dill results from its winter drill program at the Raja prospect which continue to suggest the resource is poised to double with the next update. Additionally, the company has identified a high-grade core at Raja that we believe has already contains a ~100koz. We continue to believe that Mawson’s multiple deposits at its Rajapalot Project in Finland could eventually deliver a multimillion ounce resource, with the current resource likely to double after the most recent drill program.
Impact: Mildly Positive
Mawson has announced that it has successfully drilled a new zone, Rumajärvi, that is coincident with a boulder train and geophysical target. This new discovery is outside the current resource area. We are maintaining our fair value of C$0.79/sh (unchanged) however, today’s results could define upside beyond our current estimate that the existing resource is likely to double with 2019 drilling.