Temex in the Gold report Three Essentials to Look for in Junior Mining Equities: Derek Macpherson (10/21/13)
https://www.theaureport.com/pub/na/three-essentials-to-look-for-in-junior-mining-equities-derek-macpherson
Temex Resources Corp. (TME:TSX.V; TQ1:FSE) fits into that category as well as an exploration-stage company with an attractive project that should be able to finance in the current market environment. Its project has the potential to be a high-grade, low all-in cash cost producer. It has low capex to start and $6 million ($6M) in cash on May 31 of this year. This is the type of company likely to get funded in the current market environment.
TGR: Temex is trading at $3/ounce ($3/oz), when some of its peers are as high as $20/oz. What accounts for that discount?
DM: As you know, exploration-stage companies are not as popular as they once were. Temex is still at an early stage, and investors might not fully understand the low-capex and shortened path to production that the Whitney project represents.
I think Temex is an excellent investment in the current environment for two reasons. First, it is in a joint venture with Goldcorp Inc. (G:TSX; GG:NYSE) on the Whitney project near Timmins, Ontario. That's shaping up to be a higher grade, low-tonnage underground project.
The project is within sight of Lake Shore Gold Corp's. (LSG:TSX) Bell Creek mill and about 12 kilometers (12km) from Goldcorp Inc.'s Dome mill. However, the Whitney ore is likely to be higher grade than either of those mills currently run, and consequently could displace ore at one of those mills. The market is still unsure of how real that opportunity is. The updated resource due out from Temex should increase market confidence in its potential.
Second, the Juby project makes Temex a good investment for the next gold price environment. Juby is the kind of lower grade, high-tonnage project that's been popular target for majors. It resembles Prodigy Gold Inc., Rainy River Resources Ltd. and Trelawney Resources Ltd.—all of which have been taken out. Already at 3.2 million ounces (3.2 Moz) gold, there is a lot of upside at Juby, as it is still early days.
TGR: How long would its $6M cash in hand keep Temex running?
DM: Probably into mid-2014.
TGR: Does the board have access to funds?
DM: The board is strong. Ian Campbell is the CEO and the board includes René Marion and Gregory Gibson, both of whom have good track records.
Cheers,