My Elevator Pitch For SignalAll the gold junior miners are quite undervalued but Signal Gold has been more so with all the positive and solid milestones the company acheived in the last two years: 3.1M high grade ounces (3.8 g/t) of proven gold and the deposit is open in all directions and at depth. The Phase 1 Feasibility Study is proposing two open pits producing 1.1M ounces for 10 years (100K oz/year) at 2.26 g/t with an AISC of about US$900 per ounce.
The current SP is below the warrants (21M) and options (1.6M) strike prices which are currently averaging around 50 cents.
Insiders have been buying on the markets for the last 3 years.
Currently exploring west of the existing conceptualized pits with lot of promises with an IP survey showing continuity of the magnetic signature toward Doliver Mountain, which saw some past producer extracting the yellow metal in the past. The western area could grow the near surface resource near 5M ounces and bear a third open pit insuring extra feed to the mill for a long time.
SGNL has a quality Management team that succeeded in having the IMPORTANT Environmental Assessment Approval on their first submission. They are now working on obtaining all the required permits and on the financing package. The company did not get its rerate yet regarding that achievement. Goldboro will be the next gold mine in Nova Scotia, and will be pouring gold in 2025.
There are a lot of room for institutions to step in as sharea are own mainly by the retails (75%). It's time for new retail holders to get in early before the institutions start to buy. The current market cap is low compare to other comparable companies and management was creative to find ways to get financing to avoid dilution. There is an opportunity for a big name to participate in the financing package. The company is still under the radar so there is a lot of upside when promotion will kick in.
Some catalysts are expected soon:
- Selling of the Point-Rousse assets (+ some extra gold recovered from the cleanup process)
- Drilling Campaign in the western area
- Financing package
We have also been in the orphan period of the Lassonde curve for a while now and the rerate might come sooner if the price of gold keeps rising.