The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Good write up, very undervalued this one, especially if gold keeps going---
First Class Metals – Signs Kerrs Gold Project Earn-in Agreement
Ryan D. Long
Ryan D. Long
Sharing Insights from the Global Mining Industry
108 articles
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April 22, 2024
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First Class Metals PLC LSE:FCM FRA:WN9 has signed an earn-in agreement to acquire up to 100% of the Kerrs Gold Project, located in the Abitibi Greenstone Belt of northeastern Ontario for a total consideration of C$300,000. The C$300,000 is payable in 50% cash and 50% shares, based on a series of 6 milestones.
The Kerrs Gold Project covers an area of 665 hectares and contains a historic non-compliant mineral resource estimate of 386,467 ounces of gold at an average grade of 1.71 g/t (Figure 1). The project is located in the Timmins Mining Camp, one of the most prolific gold camps in Canada, which has produced over 67 million ounces (Moz) since 1910.
Figure 1: The Kerrs Gold Project
Source: First Class Metals
Nearby-producing gold mines include Newmont Corporation’s 6.3 Moz (1.57 grams per tonne (g/t)) Hoyle Pond & Hollinger Mines and McEwen Mining Inc.’s 2.4 Moz (4.06g/t) Stock and Black Fox operations.
First Class Metals has commenced a detailed historic data review to understand the resource and its potential, ahead of planning an initial exploration programme in the summer.
The Kerrs property is not currently permitted for drilling or stripping and once the data review has been completed a ground appraisal a permit will be drafted for consultation with the local First Nations.
Thoughts
First Class Metals is earning into the Kerrs Gold Project for around US$0.57 per ounce (/oz) based on the historic resource estimate, with the gold price currently at US$2,358.10/oz, this is unquestionably an attractive deal for the company.
The historic data should give First Class Metals a good platform to rapidly establish a compliant mineral resource and assess potential targets for future exploration.
The company plans to remodel the the historic data to identify higher-grade areas for targeting in any proposed future drilling. Higher-grade areas are present within the historic resource demonstrated by the fact that over 100,000oz was defined at an average grade of 3.94g/t, using a cut-off grade of 3g/t
The Project benefits from well-established infrastructure within a premier mining jurisdiction. During a better market for junior explorers, First Class Metals would have been unlikely to secure such an attractive project, at such a low cost.
The Company continues to build for the future, with the acquisition of the advanced gold project.
The HZM comparable is not founded, it is all about the point of the curve, the start and the end are two very different places. Tier 1 nickel will always find value. HZM a failure due to lofty ambitions. Sell and move on the asset would be the way for molopo
Slow burner this though, it never was going to move at the pace the hype demanded, in on spud!
From Telegram, could be way out but whose to argue!
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Another positive interview on the ‘asset sale’.
Been thinking overnight what is being sold and what price do we think.
Current market cap £2.5m.
Five being sold and they are keeping North Hemlo if drilling if planned I suspect.
There are six permitted properties.
So I reckon the five under review are likely the five permitted excluding Hemlo.
Values then?????
Zigzag £3m?
Sunbeam £3m+
Esa £1.5m
McKellar £1m
Enabke £500k
That’s £9m but I am likely being over confident. So deduct 50%.
£4.5m or so
That’s 5-6p in cash.
Plus remaining projects with no dilution likely for years.
This really could be something special. Yet again people asleep on it.
https://finance.yahoo.com/news/seventy-ninth-group-announces-plans-143000530.html?guccounter=1&guce_referrer=ahr0chm6ly93d3cuymluzy5jb20v&guce_referrer_sig=aqaaaaebmubglvwstihrndrcboto1b0jz5pjfepxpr9guqeo-ydnpolduuyfs995hc81ohxxtoqvyiyue9z8c3y3rugupr6sy6jsnkuafpal2umeh0ciihkfgzteav4f***7r4ad9jm-axneq0z85riujqtqvd5i0_zer2rvveozdaql
seventy ninth group announces plans for expansion into canada
southport, uk --news direct-- the seventy ninth group
seventy ninth group (the “group” or “seventy ninth group”), an asset management company headquartered in the united kingdom, is pleased to announce its plans to expand the operations of its natural resources portfolio company, seventy ninth resources (the “company” or “seventy ninth resources”) into the canadian capital markets. the group is currently in the process of identifying an appropriate business combination target for the company to complete a merger or similar business combination transaction. once an appropriate business combination target has been identified, the company intends to pursue a listing of the company's securities on the tsx venture exchange.
seventy ninth group specialises in the acquisition and redevelopment of undervalued assets across its core sectors of real estate and natural resources – the company is a portfolio company that is owned and operated by seventy ninth group.
the group is owned and controlled by the webster family, who hold a unique position in both the real estate and natural resource sectors, specialising in the acquisition, management and development of high growth assets with a focus on deploying sustainable investment strategies.
Www.khaleejtimes.com/business/uk-based-79th-group-family-owned-business-makes-foray-into-uae
The company currently raises funds through loan notes whereby they loan the money from their investors specifically linked to a certain project within the portfolio, and they are paid back at an industry-beating rate of interest. The firm recently launched a fully regulated Experienced Investor Fund based in Gibraltar, whereby investors pay to own equity within a ‘cell’ which is then apportioned across a range of our natural resource and real estate assets.