Telbel Deep Drilling Program Highlights Resource Potential Results from Telbel deep drilling program. Maple Gold released complete gold assay results from the first phase of deep drilling at the Telbel Mine area of the Joutel Gold Project which is held in the 50/50 joint venture between Maple and Agnico Eagle Mines Limited. Multi-element assay results are pending. The joint venture completed a total of 7,343 meters of drilling in three master drill holes and four wedge drill holes with holes TB-22-001 and TB-22-003 and their respective wedges testing the down-plunge extension of gold mineralization beneath the historic Telbel workings. Hole TB-22-002 was a step-out to test the southeast continuity of the Eagle-Telbel system.
High-grade potential at depth. Results from the deep drilling program support the strike and depth continuity of the Eagle-Telbel Mine Horizon beyond the current limits of drilling and the presence of multiple mineralized horizons along with the presence of high-grade gold mineralization beneath the underground mine workings and deepest historical gold intercepts. All three holes intersected significant horizons of semi-massive to massive sulfides, with Hole TB-23-003W2 intersecting significant gold mineralization approximately 575 meters below the lowest level of historic mining at Telbel.
Next steps. To support follow-up targeting and drilling at Telbel, Maple Gold intends to: 1) assess multi-element assays to better characterize rock types and define pathfinder zonation, 2) review downhole electromagnetic survey results for holes TB-23-001 and TB-23-002 and their respective wedges, 3) complete the downhole electromagnetic survey for TB-22-003 and TB-23-003W2 to determine continuity of sulfide zones, 4) surface map the intersection between the Harricana and Joutel Deformation Zones east of TB-22-002A, and 5) develop and refine follow-up wedge drill holes for the next phase of drilling.
Rating is Outperform. In our view, first phase deep drilling at Telbel highlighted the property’s resource potential at depth and we look forward to results from the deep drilling program at Douay. We think the shares offer a compelling value based on significant resource growth and new discovery potential driven by the company's drilling programs.
Telbel Deep Drilling Program Highlights Resource Potential at Depth
Maple Gold released complete gold assay results from the first phase of deep drilling at the Telbel Mine area of the Joutel Gold Project which is held in the 50/50 joint venture between Maple and Agnico Eagle Mines Limited. Multi-element assay results are pending. The joint venture completed a total of 7,343 meters of drilling in three master drill holes and four wedge drill holes with holes TB-22-001 and TB-22-003 and their respective wedges testing the down-plunge extension of gold mineralization beneath the historic Telbel workings. Hole TB-22-002 was a step-out to test the southeast continuity of the Eagle-Telbel system.
Results from the initial Telbel deep drill program support the strike and depth continuity of the Eagle-Telbel Mine Horizon beyond the current limits of drilling and provide additional support for the presence of multiple mineralized horizons, along with the presence of high-grade gold mineralization beneath the underground mine workings and deepest historical gold intercepts. All three holes intersected significant horizons of semi-massive to massive sulfides, with Hole TB-23-003W2 intersecting significant gold mineralization approximately 575 meters below the lowest level of historic mining at Telbel. Figure 2 is a long section with updated grade contouring showing new gold intercepts in Hole TB-23-003W2.
Two holes bottomed in mineralization, which indicates the potential for additional gold intercepts with modest drill hole extensions. The upper zone of lower grade semi-massive pyrite in both TB-23-003W1 and W2 indicate the potential for multiple additional broader zones of gold mineralization in sparsely drilled areas. In Figure 1, proposed vectors, shown as arrows, point to open areas with the potential for higher grades and volume potential.
Hole TB-23-003W2 intersected 3.5 grams of gold per tonne over 4.8 meters from 2,018.2 meters downhole, including 5.2 grams of gold per tonne over 2.0 meters and 11.1 grams of gold over 0.5 meters. An additional intercept returned 3.9 grams of gold over 4.5 meters, including 5.8 grams of gold per tonne over 2.0 meters and 7.6 grams of gold per tonne over 1.0 meter. These results indicate that gold mineralization is present well below the limits of historical mining in this area.
While most historical sulfide intercepts are located along or near the known Eagle-Telbel Mine Horizon, both TB-23-003 wedges intersected broader semi-massive pyrite intervals within which multiple lower-grade intercepts were returned. Management believes the lower grade material in semi-massive sulfide could represent the edges of a new zone.
Company Profile
Maple Gold Mines Ltd. is an advanced exploration company in a 50/50 joint venture with Agnico Eagle Mines Limited to jointly advance the district-scale Douay and Joutel gold projects located in the Abitibi Greenstone Belt of Quebec, Canada. The projects represent a large and highly prospective land package encompassing 400 square kilometers, including an existing gold resource with significant expansion potential at Douay, along with the past producing Telbel and Eagle mines at Joutel. Maple Gold controls 100% of the Eagle mine. The company's shares are listed on the TSX Venture Exchange under the symbol MGM, on the OTCQB under the symbol MGMLF, and on the Frankfurt Stock Exchange under the symbol M3G.
Fundamental Analysis 4.0/5.0 Checks
Our fundamental assessment rating, separate from our investment rating and valuation, is based on five attributes. We assign 4.0 checks out of 5.0, which falls within our "Above Average" range of 3.5 to 4.0 checks. In our opinion, the company's corporate governance practices are shareholder friendly, including a five-member board comprised of mostly independent directors, including the chairperson. Maple Gold operates in the mining friendly jurisdiction of Quebec which ranked eighth out of 62 jurisdictions in terms of investment attractiveness in the Fraser Institute's Annual Survey of Mining Companies 2022. The company is well capitalized and is focused on establishing a new gold district through resource expansion and new discoveries.
Valuation Summary
Our investment rating is Outperform and our price target is C$0.40 per share or US$0.30 per share. As a mid-stage exploration company, Maple Gold Ltd. cannot be valued based on revenues, EBITDA, earnings, or cash flow. For our valuation, we have employed an Enterprise Value/Resources method. Based on Maple Gold's 50% joint venture interest in the 2022 NI 43-101 indicated and inferred resource of 3.0 million gold ounces, the company’s enterprise value per gold ounce is below the comparable group average of C$49.10 or US$36.83. Due to fluctuations in exchange rates, we are using a baseline foreign exchange rate of US$0.75 per CDN$1.00.
In our view, we think the company should trade in line with or at a premium to the comparable group due to Maple Gold’s large land package within the Abitibi Greenstone Belt which supports district-scale potential, strong balance sheet, and partnership with a leading senior gold producer. Additionally, given the abundance of historical data and work-to-date, we think the company’s projects have been significantly de-risked.
Assuming the company’s 50% interest in the Douay project is valued at the comparable group average of C$49.10 or US$36.83 per gold ounce, near-term fair value for the project is at least C$74.5 million or US$55.9 million. Ascribing a conservative value of C$45.0 million or US$33.8 million to Maple Gold’s interests in Telbel and Eagle, adding back cash and subtracting debt leaves a fair market of C$127.6 million or US$95.7 million. Rounding to the nearest $0.05, our price target of C$0.40 or US$0.30 is based on 338.8 million shares outstanding.
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https://www.channelchek.com/research-reports/25901