Gold Terra Resource Corp. (YGT.V)

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Company description

Gold Terra Resource Corp. (TSXV:YGT)(OTCQX:YGTFF)(FRA:TXO) is a gold focused exploration and development company with major assets in northern Canada. The company has seen a turnaround the last few years, going through a name change from TerraX Minerals into Gold Terra Resource Corp., some changes in management with the most important change being the entry of Gerald Panneton as Executive Chairman, and a new exploration vision on their flagship project. Panneton is a big name in mining land, being the founder of Detour Gold, one of the largest gold mines in Canada today, and he brought it into production. It was sold eventually in 2020 for C$4.89B to Kirkland Lake Gold. Gerald received the PDAC 2011 Bill Dennis Award for the discovery of Detour Lake.

Gold Terra’s 100% owned flagship Yellowknife City Gold Project in the southern part of Northwest Territories is part of a district scale land package of nearly 800km2 in the historic gold mining district of Yellowknife, very close to the former producing Con and Giant mines (14Moz Au production at 16g/t so far). The project had a NI 43-101 compliant mineral resource statement completed on it in November 2019. The deposits contains a 735koz Au resource @1.79g/t Inferred. This can be divided into an open-pittable component of 523koz Au @ 1.4g/t, and an underground component of 212koz @5.7g/t. Both grades are economic for open pit/underground operations at an estimated gold price of US$1300/oz. At current gold prices (US$1850/oz, December 2020) the economics will probably be excellent, and probably also allow the deposit at a lower cutoff grade to contain more ounces.  

Management expects to improve on these resource numbers with the completed 2020 infill and step-out drill programs at Sam Otto and Crestaurum, and is looking to update the resource estimate in 2021. Sam Otto returned intercepts like 10.6m @ 2.48g/t Au, 2m @ 6.24g/t Au, 50.6m @ 1.3g/t Au and 51.6m @ 1.18g/t Au. Highlighted drill results for Crestaurum are 4.5m @ 9.6g/t Au, 1m @ 43g/t Au and 1m @ 16.6g/t Au. The company is awaiting results of 10 remaining shallow holes at Crestaurum.

Another 12,000m drill program was started in November 2020 at the highest priority Campbell Shear target, which was recently optioned from Newmont. Historic drilling at this target resulted in 13.4m @2.8g/t Au, 7m @ 4.21g.t Au and 11.3m @ 1.92g/t.

Gold Terra raised C$7.1M on July 14, 2020, resulting in a full treasury, enabling them to do lots of drilling well into 2021. The current cash position (December 2020) stands at C$4M. The company is looking to define a multimillion ounce project as soon as possible, in order to benefit the most from the current high gold price.

Share price Gold Terra Resource Corp: