When it comes to discovery plays here’s what to consider for high grade vs low grade discoveries
Steve Todoruk, Investment Executive and Geologist at Sprott Global joins me to share some of the key elements that he looks for in possible new discoveries differing between high grade narrow results and lower grade wide intercepts. While lots of companies will promote “a discovery” Steve let’s us know what he considers a true discovery.
If you would like to ask Steve about any specific companies in your portfolio or have Steve review your portfolio for free you can email him at STodoruk@sprottglobal.com. You can also email me at Fleck@kereport and I will out you in touch.
I wonder if Galleon Gold fits Steve’s criteria of a high grade mine?(some nice drill results as of late)
I know Sprott has a decent size position.
Any thoughts?
Galleon has hit a lot of high grade gold by today’s standards. Let’s see what the new resource estimate and PEA shows in the second quarter.
Sprott owns a huge 23% of the company while I have a comparatively tiny 1.616 million shares.
Thanks Matt..nice position…and My position compared to yours…tiny,tiny 150K
Poko – in looking at the drill intercepts in the recent exploration update, the grades looks pretty solid, but the intercepts are are all 1 meter – 1.5 meters (so fairly narrow) and they are distributed at depths of 100 to 400 meters, so it’s starting to get deeper for an open pit, but possibly they could combine an open pit to start in concert with some some underground mining for the 300-400+ meters down material. The grades are quite respectable, but the question is can the company stitch all those together into an economic mine plan with the waste rock in between the higher grade segments, and with the strip ratio to move all the waste rock at surface?
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Galleon Gold – 38,000 Meters Completed and the Drills Keep Turning
3 Mar 2021
> WC-20-65 intersected
7.33 g/t Au over 1.5 m (103.5 to 105 m)
5.22 g/t Au over 1.5 m (244.5 to 246 m)
5.94 g/t Au over 1.0 m (270 to 271 m)
> WC-20-66 intersected 6.68 g/t Au over 1.5 m (409.5 to 411 m)
> WC-20-67 intersected 7.9 g/t Au over 1.0 m (130 to 131 m)
> WC-20-68 intersected
7.4 g/t Au over 1.0 m (175 to 176 m)
7.2 g/t Au over 1.0 m (315 to 316 m)
9.2 g/t Au over 1.0 m (322 to 323 m)
> WC-20-69 intersected 9.82 g/t Au over 1.5 m (252 to 253.5 m)
> WC-20-70 intersected 13.6 g/t Au over 1.0 m (216 to 217 m)
> WC-20-71 intersected 12.6 g/t Au over 1.5 m (174 to 175.5 m)
> WC-20-73 intersected 27.0 g/t Au over 1.0 m (235.5 to 236.5 m)
> WC-20-91 intersected 14.0 g/t Au over 1.5 m (119 to 120.5 m)
There are actually plenty of much wider hits in other zones in addition to impressive historical results (see page 21 of the presentation for about a dozen good examples including 114.76g/t Au over 7.8 m).
Here are a few from two months ago:
WC-20-097 intersected 7.66 g/t Au over 10.0 m
WC-20-095 intersected 3.24 g/t Au over 9.0 m
WC-20-081 intersected 8.68 g/t Au over 10.0 m
WC-20-080 intersected 8.25 g/t Au over 9.0 m
WC-20-079 intersected 3.37 g/t over 5.0 m
From last month:
WC-21-115 intersected 11.25 g/t Au over 6.0 meters
WC-20-082 intersected 9.4 g/t Au over 10.0 meters
A couple from last year (there are more):
WC-20-42 has intersected 7.44 g/t Au over 10.7 meters
WC-20-31 intersected 5.87 g/t Au over 8.5 m
(WDO) (WDOFF) Wesdome discovers new gold zone at Kiena ahead of restart decision
Canadian Mining Journal Staff | March 23, 2021
“With a prefeasibility study (PFS) expected to be complete in the second quarter, gold miner Wesdome Gold Mines (TSX: WDO) has announced the discovery of a high-grade gold zone at its past-producing Kiena mine in the Val d’Or area of Quebec.”
The latest discovery is in the footwall of the higher-grade Kiena Deep A zone. Drill highlights from this area include 22 metres of 11.9 g/t gold; 5.9 metres of 59.7 g/t gold; and 18 metres of 34.2 g/t gold. The mineralization is within 50 metres of the existing A2 zone and appears to be in an ultramafic host unit with “good geotechnical properties.”
https://www.mining.com/wesdome-discovers-new-gold-zone-at-kiena-ahead-of-restart-decision/
Ex, after our conversation I purchased just a “smidgen” of WDOFF. I do this occasionally for stocks that I like fundamentally and technically after they have pulled back. Then they’re on my portfolio and I treat that as my “watch list”.
Nice Doc. Yes, I do the same thing by putting a little money on the line and consider it a “tracking position”. That way it is on my radar, so I can focus on it more than my other watchlists, and start to average in over time at a better cost basis. I really like Wesdome, but felt it had run a bit too much last summer; however, after the last 7+ months corrective move, it is at a more compelling valuation down at these levels. Honestly, I hope it falls a bit further so I can add so more tranches even lower.
This editorial with Steve T. was a really good rundown of the good, the bad, and the ugly when analyzing exploration results, and something I wish I’d heard much earlier in my investing journey in the resource sector. Excellent insights shared guys.
Thx Matt and Excelsior for the comments on Galleon!
Currently building a position
Good luck Poko. May it be a very prosperous position!
Here’s a Galleon Gold webinar from last month, for what it’s worth…
https://www.youtube.com/watch?v=4o04yo7pV6w&ab_channel=RedCloudFinancialServicesInc.
What are your thouhjts on SOLGOLG copper resources in Ecuador?
(ROXG) (ROGFF) Roxgold Continues to Rapidly Advance Séguéla Towards Formal Construction
March 25, 2021
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/730-tsx/roxg/95851-roxgold-continues-to-rapidly-advance-seguela-towards-formal-construction.html?utm_source=newsletter_1070&utm_medium=email&utm_campaign=junior-mining-brief-for-date-b-j-y