brodeur wrote: How many juniors ever get to production let alone at $13m market cap? This company has a NI 43-101 compliant inferred resource: 219,700 oz gold and 3,000,000 oz silver. That's with 10% of the property drilled. All surface gold, easy to extract and low capex. With today's bull precious market, at $700/oz cash cost, company is set to make millions just on 1000oz of gold per month.
What's interesting is we are two-three weeks from getting the AMDAL approved, last step of government approvals to a production license. This paved the way for construction of 1 out of eventual 4 leach pads, from initial 1000 oz per month to 4000 oz per month. Do the math and with gold rising, same work yet more revenue.
This is just the beginning of the story. Producing gold should send this $13m market cap junior to much higher valuation. What's the big increase in value, aside from a buyout which is not out of the question, is a 3.14m oz gold resource that's not on the books. Reason why it's not on the books is cause per tsx rules, if there's not exploration or transaction occurring with the property, that asset needs to be written off. So that's what happened, and along went the market cap from $600m to bottom $2m during covid lows. Since then, share price has increased 350%.
Back to Miwah with 3.14m oz gold. Upon exploration, value will be added back to the company, and share price will reflect that. Based on Eric Sprott's weekly recap on Sprott Money, value for gold in the ground is increasing higher than the value of spot gold price itself. At $100/oz, that's $300m for the 3.14m oz inferred. With 150m shares OS, that's $2/share value.
With the production license thats coming in the next month, construction will occur and gold will be mined. Cash flow will be used for drilling Sangihe out further and to start getting Miwah back into production mode. That $2/share valuation is quite enticing based on current $0.135 close on Friday.
Some may not connected the dots yet:
- Sprott Asset Managemrnt USA owns 13% of eas
- Sprott Financial Partner has been engaged to help restart Miwah (per PR last year)
- Eric Sprott was a past shareholder
With Eric Sprott being a super bull and basically buying anything that is showing value in gold, there's a definite potential he will once again be involved. This has Sprott written all over it.
Once production license in hand, all the above could generate huge returns to this $13m market cap gold company getting into production and vastly increase its value with a known 3.14m oz resource. Where else would one find a 3.14m oz gold resource these days without spending millions to find?
From EAS website:
2017 Updated Sangihe Gold Project NI 43-101 Report
The current exploration report on Sangihe identified NI 43-101 (2017) with indicated resources estimated at 3.16 million tonnes averaging 1.13 g/t gold and 19.4 g/t silver for 114,700 ounces gold and 1,972,400 ounces silver in near and at surface oxides and sulphides. And inferred resources are estimated at 2.54 million tonnes averaging 1.29 g/t gold and 13 g/t silver for 105,000 ounces gold and 1,055,600 ounces silver in near and at surface.