Gold

Fiore Gold Advances Pan Mine Quickly Into Stable Planned Production; Significant Cash Flow Awaits

Pan Mine, Nevada

1. Introduction

Fiore Gold (F.V) has progressed its Pan Mine in Nevada, US in a very steady fashion, on time and on budget. Exploration for additional resources (and hopefully years of mine life as well) has been successful so far, and a new COO has been hired. Recently, the latest financials regarding the first quarter of the new year were released, which are always an interesting reference of the state of a company, especially with producers. Therefore it was time to have a closer look at Fiore Gold, Frank Giustra's baby.  Besides an update on proceedings, the other purpose of this article will be the outlining of future cash flow and valuation potential, as I view Fiore Gold as misunderstood by the markets at the moment.

All presented tables are my own material, unless stated otherwise.

Genesis Metals Continues To Prove Up Chevrier Mineralization; Further Drilling About To Start

Chevrier Gold project; core shack Main Zone

After having completed a 10,150m 58 hole drill program on the Main Zone, plus 25 new trenches and re-sampling of 11 historic cores, it seems that Genesis Metals is well on its way to get more insight in the complex geology of Chevrier, therefore an update is warranted. Follow up drilling on a new Main Zone extension is about to commence in this spring, and a maiden resource estimate is scheduled for Q3, 2018. On top of that, the company is contemplating drilling other geological targets as well, as the property has abundant exploration potential.

All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

2. Background summary

Margaux Resources: Brownfield Leverage And Blue Sky Greenfield Exploration At The Kootenay Arc

Margaux Resources: Brownfield Leverage And Blue Sky Greenfield Exploration At The Kootenay Arc  

 

Kootenay Arc; Jersey Emerald Project

1. Introduction

Every now and then certain junior mining companies succeed in consolidating a large group of claims or even multiple projects on very favorable terms, often creating very interesting continuous land packages with ongoing areas of exploration potential, greenfield and/or brownfield. This kind of transactions are usually out of the realm of larger, well known parties, as prices shoot up the second their involvement becomes apparent.

Future Upside Provides Excellent Entry Point For Fiore Gold

Pan Mine, Nevada

After a lengthy trading halt since June 12, Fiore Gold (F.V) started trading on October 2, having completed the business combination with GRP Minerals. This took quite a bit of time, as it was a fairly complex venture for both companies, with a lot of paperwork.  I view this deal as an accretive one, as a lot of tangible value through much more advanced assets was added, up to an estimated Net Asset Value of about C$120M in my view, and a lot of realistic growth potential. Apparently, not everybody had the same long term view for Fiore Gold as is needed in this case, the company now morphing into a long term growth production story instead of an exploration story, and a sell-off started immediately after opening of the markets:

Genesis Metals: Chevrier Phase I Drilling Completed, Phase 2 Program Commencing

Chevrier Gold project; IP anomaly

In between exploration success stories (for example GT Gold) or possible myths in the making (Novo Resources) taking center stage, Genesis Metals quietly completed the Phase I drill program, consisting of 4,900m of diamond drilling. Results were announced on October 3rd of 9 drill holes, and channel sampling. Management received two separate batches of results of the Phase I drill program, reporting 8 out of 9 holes testing greenfield IP anomalies in 2 target areas in (see image above in red) now in the first batch, and the remaining 13 drill holes focused on the Main Zone will come out in the second batch in about 3 weeks.

Rise Gold: A Tiny Junior Targeting 1-3Moz High Grade Gold, Left Behind In Past-Producing Idaho-Maryland Mine

Former Idaho-Maryland Mine, Nevada County, California

1. Introduction

Sometimes I come across mining stories that read like an old fashioned treasure hunt of sorts. Rise Gold (RISE:CSE, RYES:OTC), a small junior headquartered in Vancouver, falls neatly into this category in my view. CEO Ben Mossman found the past-producing high grade Idaho-Maryland gold mine after intensely searching the internet for about 5 months, scanning eligible projects up for sale, historic databases and other leads. When he started doing his due diligence, which meant sifting through a basement full of old documents, it soon dawned on him that this project could host huge exploration potential, besides the considerable historic (2002) high grade estimate of 0.4Moz @ 9.1g/t Au M&I and 0.9Moz @12.7g/t Au Inf, as the Idaho-Maryland had to halt production in 1954 when it was nowhere near depletion.

The Fiore-GRP Deal: Giustra Builds Another Gold Producer

Pan Mine, Nevada

1. Introduction

In December 2016 I introduced Fiore Exploration, a new company backed by Frank Giustra, and it has been a relatively quiet 6 months. Fiore completed some drilling on the Pampas El Peñon project in Chile and an IP survey on the newly acquired Cerro Tostado.

But behind the scenes, things were in motion. Earlier this year, Fiore began exploring the idea of merging with GRP Minerals, a private company ramping up the PAN heap leach operation  in Nevada. GRP bought Pan and other Midway Gold assets for US$5.5M and spent another US$18 million on upgrading and restarting the operation. Midway had spent more than US$100 million constructing the Pan mine but in the end failed to execute. The demise of Midway Gold is a whole other story, one I will touch on later.

Genesis Metals Raises C$4M, Welcomes Eric Sprott And Osisko Mining As Significant Shareholders, Drilling At Chevrier Starts In July

After compiling, interpreting and modelling all available data and surveys, and defining targets, Genesis Metals needed cash to advance their flagship Chevrier Gold project to the next stage: commencing of drilling. Management worked hard to gain interest, and it seemed they succeeded in their aim to get the company funded to drill well into 2018. On top of this, they welcomed two of the most respected and well-known names in the business, Eric Sprott and Osisko Mining as significant shareholders, which is impressive. The company completed 2 rounds of financing to achieve this. 

On June 5, 2017, Genesis Metals closed its C$3.25-million non-brokered private placement previously announced on May 24, 2017. Eric Sprott, Delbrook and other large, strategic institutional investors also participated in this first big round.

Leagold Mining: Woodyer & Giustra Are Building Endeavour Mining 2.0

 

Executive Summary:

  • After Neil Woodyer left Endeavour Mining as a CEO in 2016, he teamed up with mining titan Frank Giustra, to set up Leagold
  • They managed to buy the Los Filos gold mine from Goldcorp in Mexico for US$350M
  • After giving this a closer look, it seems a profitable acquisition for Leagold
  • Development potential provides significant upside in a few years
  • Management is aiming at aggressive growth in order to build the next mid tier producer

Chevrier Gold Project: A New District-Scale Start With Lots Of Upside For Genesis Metals

Chevrier Gold project

1. Introduction

Being established at the peak of the last precious metals bull market as its predecessor Entourage Metals, junior explorer Genesis Metals didn't have the most easiest of times to make a name for itself. Despite a set of very prospective claims and a very experienced team of well-known geologists, things went south during the bear market as significant new discoveries couldn't be made at the time.

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