Post by Pointer2on Apr 24, 2025 10:15am
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Post# 36549589
Major Opportunity Despite the Lease News
Major Opportunity Despite the Lease NewsI see things differently – and I’d like to share a few key points that, in my view, highlight the enormous potential that still exists here.
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1. Lease ending – or new beginning?
“The Company intends to focus its efforts on securing a new lease on favorable terms.”
This isn’t a withdrawal. It’s a clear indication that a new agreement is in the works – potentially with better terms. The fact that the company website is currently being updated may suggest that further announcements are on the way.
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2. Ongoing exploration with high-grade potential (May 6, 2024 News)
• Surface samples of 17.5 g/t Au
• 4,000 m targeted drill program planned
• Historical samples up to 97 g/t Au
• Key focus: McCarthy & Mexican shafts
• Bonanza zone: historically produced 50,000 oz of high-grade gold
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3. February 25, 2025 Update – Current Company Profile
Providence Gold Mines holds:
• 7 historic high-grade mines in the Mother Lode Belt
• Estimated gold potential: 1–4 million ounces
• Access to gold-bearing stockpiles with direct gravity processing potential
• Modern exploration using 3D LIDAR, geochemistry, and conventional mapping
• Goal: near- to mid-term cash flow and resource development
The region itself – California’s Mother Lode – has produced over 128 million ounces of gold. Providence sits on one of the best addresses in North America.
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4. Historic Value Confirmed (Streetwise Report, Nov 2019)
Bob Moriarty (321gold.com) wrote:
“With six high-grade gold mines and a $4 million market cap, this is a potential 10-bagger.”
He pointed to the quality of the historic mines, the potential in the stockpiles, and the economic upside – all at a very low market valuation.
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5. The Gold Price Is in Our Favour – over $3,400/oz
Today’s environment – strong gold price, tight global supply, geopolitical uncertainty – puts real assets back in focus. Especially those with drill potential and possible funding in sight.
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Conclusion:
Many have written off Providence Gold Mines. But I believe this is a classic turnaround setup with serious upside leverage:
• Historic mines + modern exploration
• Possible near-term cash flow from stockpiles
• Gold price at record highs
• Resource potential up to 4 million oz
• New lease in progress + potential financing in the works
And all of this with a share price around $0.015–$0.025 CAD?
Personally, I see a major opportunity here – not the end.