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How This Gold Junior is Making Strides in Newfoundland

Jocelyn Aspa Jocelyn Aspa, The Market Herald
1 Comment| August 5, 2021

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When it comes to gold mining in Canada, hotspot regions such as the Abitibi Greenstone Belt in Northern Ontario and Quebec and the Golden Triangle region of British Columbia are often the most discussed, and it’s not hard to understand why: Ontario and Quebec accounted for over 75 per cent of Canada’s gold production in 2019, while British Columbia out west contributed to just under 8 per cent of the country’s gold production that year.

That being said, other Canadian regions are also starting to have an impact on the production of the yellow metal. Smaller provinces, such as Newfoundland, are slowly but surely picking up gold production, making the Atlantic province a literal gold mine that has been waiting to be discovered.

Case in point, Newfoundland has a deep mining history, with small-scale mining dating back as far as the 1770s. Roughly a century later, a major copper discovery at Notre Dame Bay was made in addition to a Wabana iron ore deposit on Bell’s Island.

Since the 1800s, resources such as lead, zinc, copper, nickel and cobalt have dominated Newfoundland’s mining sector, although that landscape has begun to change. By 1976, significant gold mineralization was discovered near Cape Ray on the province’s south coast, while the Hope Brook deposit was discovered in 1984 and became Newfoundland’s first major gold mine, which operated between 1986 and 1997 with over 752,000 ounces of gold produced.

Fast forward to the present day when more and more gold discoveries are being made in Newfoundland — with 661 kilograms produced in 2019 — and companies like K9 Gold Corp. (TSXV:KNC, OTC Pink:WDFCF, Forum) are making their presence known in the province.

Headquartered in Vancouver, BC, K9 Gold is an exploration company focused on acquiring, discovering and developing gold deposits across North America. At present, the company is focusing its efforts on the Stony Lake gold project within the Cape Ray/Valentine Lake in Central Newfoundland, which is one of Canada’s latest orogenic gold districts.

Before its focus in the gold sector, K9 Gold started as a vanadium company. In an interview with Stockhouse Editorial, Kosta Tsoutsis, director with K9 Gold, said the company made the switch to gold last which lead the company to its primary focus — the Stony Lake Project.

The Stony Lake Project

Spanning over 13,025 hectares and 27 kilometres, the Stony Lake Project sits along trend between Sokoman’s Moosehead discovery to the northeast and southwest of Marathon’s Valentine Lake deposit, putting it in good company for exploration and discovery.


(Click to enlarge image)

With its ideal location, the project site sits at an intersection of high-grade gold mineralization and widespread low-grade mineralized pyritic sandstone, quartz veins and quartz stockwork that has the potential to return 0.5 to 4.0 grams per tonne (g/t) gold.

Similar to the Moosehead project and New Found Gold’s Queensway project, Stony Lake is considered a high-grade gold environment. For reference, in 2017 Sokoman yielded drilling results at 11.9 metres of 44.96 g/t gold, while New Found Gold yielded 92. g/t gold over 19 metres just last year.

In other words, this means the Stony Lake project should follow similar trajectories because of its location.

Case in point, back in 2019, an extensive field program was conducted that focused on prospecting, mapping and sampling in addition to a property-wide airborne magnetometer and radiometric survey. This mapped bedrock lithologies, structural features and areas of structurally controlled potassic alterations identified a range of target areas.

Results from the program include eight areas of highly anomalous to high-grade gold — 15.05 g/t mineralization identified, which is hosted in quartz-feldspar porphyry, pyrite and arsenopyrite bearing reduced sandstone, quartz stockworks and quartz veins.

To advance the project, the company implemented a technical advisory board last fall.

Now, K9 Gold is in the middle of its planned 5,000 metre drill program, which began in June, and reported the first results just a couple of days later. Results included 5.5 g/t gold over 4 metres in the deliverance trench.

With summer now in full swing, K9 Gold is now waiting for additional results from the drilling program, which covers 3.1 miles in total depth across roughly 15 drill holes on the property.

The first drill hole is near Jumper’s Pond, which is described as a well-defined and high-priority drill target. The company said it will target a high-priority anomaly identified through an induced polarization (IP) survey completed in May.

Tsoutsis told Stockhouse Editorial that the company is expecting more soil samples out of these results. Preliminary results from the Moonlight and Jumper’s Pond regions have shown the potential of the property — with Jumper Pond becoming the main target after completing myriad tests and surveys on the property during late 2020 and the first half of this year.

In a press release, K9 Gold CEO Jeff Poloni said, “We are extremely excited to have our maiden drill program underway. This announcement is the culmination of a great deal of work by many at K9 Gold and its working partners. And now, as we all await those first results, it’s official—K9 Gold’s drilling program is front and center in a hotbed of activity in Central Newfoundland’s Gold Belt and combined with a string of positive results received from each of the tests and surveys conducted on the property, should make the anticipation for the unveiling of those first drilling results even more compelling.”

Next steps for K9 Gold

As the gold market prepares for potential inflation — depending on the US’ Federal Reserve’s decision regarding interest rates — K9 Gold will be continuing to ramp up its efforts to position itself as a future game-changer in the gold space.

Moving into the rest of the year, the company will carry on with its drilling program at the Stony Lake project, which Tsoutsis explained will include the 5,000 metres and finishing up at the Northeast area where K9 Gold first started.

“We’ll be going down half the property where we had good trench showings in the Deliverance Trench region,” Tsoutsis said, adding that this will be done after the 10 holes are completed in the Northeast region.

Once the current 5,000 metre program is finished, Tsoutsis said the company will look to get an additional permit for another 5,000 metre drilling program before the end of September.

The management team

Jeff Poloni, CEO

Jeff Poloni has over 30 years of experience working in mineral exploration and corporate management projects in South, Central and North America.

Poloni has held the position of director and other senior officer roles with TSX Venture companies by providing exploration management, SOP’s and corporate governance. In addition to his role with K9 Gold, Poloni is president of JCMP Management Corp. and Auranita Resources Corp.

Brian Morrison, CFO

Brian Morrison received his Bachelor of Commerce degree from the University of Northern British Columbia in 2004. Two years later, he completed the Canadian securities course and acted as an account manager for Computershare Investor Services Inc. between 2005 and 2008.

Since 2008, Morrison has been a self-employed consultant working in public company administration, and services as director or CFO of a range of publicly traded companies.

Kosta Tsoutsis, director

Kosta Tsoutsis has over 20 years of finance and capital market experience. In addition to his role with K9 Gold, Tsoutsis is currently CEO of M3 Metals Corp and previously worked as an investment advisor with Mackie Research, Jordan Capital Markets and Canaccord Capital Corp.

Tsoutsis’ experience also includes specializing in developing, restructuring and financing capital venture companies, and has directly raised over $30 million in development and venture capital for public and private companies all around the world.

Chris Healey, director

Chris Healey has over 50 years of experience in the natural resources industry covering everything from early-stage exploration to development and production.

With a Bachelor of Science degree in geology from the University of Wales, Healey has worked with International Nickel Company (now Vale Limited) and Cameco Corporation.

Healey most recently served as president and CEO of Titan Uranium, where he assisted with the permitting of a major mine and mineral recovery facility. Healey has also served as the national president for the Geological Society of Canadian Institute of Mining, Metallurgy and Petroleum.

The investment opportunity

As it currently stands, K9 Gold has 53 million shares outstanding and 8.86 million shares in the public float. With a market capitalization of just over $21 million, shares of the company are priced at $0.39 and are up 225 per cent year-over-year.

The company’s lower stock price makes it an attractive investment when compared to other gold companies in Newfoundland with larger share prices, including New Found Gold at over $10 and Marathon Gold at $3.12.

With that in mind, K9 Gold puts itself in good company with other companies in the Atlantic province. Although K9 Gold is in its early stages, this makes it a sound opportunity that investors won’t want to miss out on.

To learn more, please visit k9goldcorp.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing



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