The Hunt for Fosterville-Style Gold Mineralization Down Under

Mike Fagan
by Mike Fagan

E79 Resources (CSE: ESNR) – currently trading below C$0.75 per share – is advancing the Beaufort and Myrtleford Gold Projects in one of the hottest gold area plays on the planet — Victorian goldfields, Victoria, Australia. 

The company is targeting Fosterville-style mineralization on both of its projects.

And for those who aren’t familiar… Kirkland Lake’s Fosterville Mine is the largest gold producer in Victoria, Australia, with annual gold production of around 400,000 ounces in 2019… 500,000 ounces in 2020… and a projected 575,000 ounces in 2021.

The Fosterville Mine is also one of the world’s highest-grade gold mines at an almost unheard of 17.9 grams per tonne gold.

E79’s flagship is the Beaufort Gold Project – a past alluvial producer – where the company’s geologic team is seeing a classic gold arsenic antimony geochemical signature similar to Fosterville.

e79-victorian-gold-fields-1920

E79’s president & CEO – whom you’ll be hearing more from in a moment – stated via press release:

“We are extremely pleased to announce the acquisition of two high-quality gold projects in one of the most sought after and competitive gold jurisdictions in the world, where over 80 million ounces of gold have been produced to date and where recent exploration has resulted in one of the most spectacular gold deposits in the world … Beaufort has the potential for Fosterville-type mineralization. At Myrtleford, there are over 70 historical gold mines on the property with grades often greater than 1 ounce per tonne gold. Host rocks are of a similar age and type as those of the Bendigo Zone in central Victoria that host the Bendigo, Ballarat and Fosterville gold deposits.”

Both of E79’s projects have had substantial historical gold production from relatively shallow depths — yet, importantly, neither property has been significantly drill-tested at-depth. 

Thus, deeper exploratory drilling will be a key area of focus in 2021 as the company builds toward producing a maiden resource for both the Beaufort and Myrtleford projects.

E79 represents a true early-stage opportunity in the junior gold space where the drills will tell the story.

The company is operating in an area that hosts some of the largest and highest-grade gold mines in the world… so to say the company is in the right mining address would be an understatement indeed.

Our own Gerardo Del Real of Junior Resource Monthly and Junior Resource Trader recently caught up with E79 CEO, Rory Quinn, to discuss the properties, the team, and the exploration and drilling plans for 2021.

You can also find more information on E79 Resources at its corporate website.

Yours in profits,

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest

E79 Resources (CSE: ESNR) CEO, Rory Quinn, on 2021 Exploration and Drilling Plans for Beaufort and Myrtleford Gold Projects, Victorian Goldfields — Victoria, Australia 

Gerardo Del Real
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of E79 Resources — Mr. Rory Quinn. Rory, how are you today?


quinn
Rory Quinn: Very good. Thank you, Gerardo. How about yourself?


Gerardo Del Real
Gerardo Del Real: I'm excited to have you on. The company, E79, checks all of the boxes as far as keywords go anyway. It's gold; it's a large 100%-owned portfolio in the Victorian goldfields. It's a good market cap. It's a small market cap. It's a great share structure and a good team with experience in this part of the world.

And so I'm excited to have you on and introduce the story to the audience. But I want to dig into the merits of the properties and the team and the background and why you think 2021 is going to be a good year for the company. And, obviously, we all know how we feel about the gold space, right?

So with that being said, can you give us a brief overview of E79 and the team in place? And then we can talk about the Victorian goldfields, which, of course, is one of the hottest gold addresses on the planet, right?



Rory quinn
Rory Quinn: Yeah, and to continue with what you were saying, I would use three words: Fosterville-type mineralization. That's what we're looking for at our Beaufort property, which is probably the more advanced of the two. Coincidented structure relative to Fosterville and almost an identical geochemical signature.


Gerardo Del Real
Gerardo Del Real: Tell me about the team that's going to be exploring for Fosterville-like deposits because that's critical in this part of the world, right? You have to know what you're looking for. You have to recognize the structures, the rock types, and you can't be a geologist or have a team that isn't experienced in this part of the world and hope that you get lucky, right?

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Quinn
Rory Quinn: That's right. We're really lucky to have a very solid team in Victoria itself led by Dennis Arne who’s a superb geologist and really specializes on the geochemical side. He's actually Canadian but has been living in Victoria for several years now. And his partner, Pete De Vries, is a native Victorian who’s been working in the Goldfields for really most of his career.

So that really benefits us from the standpoint of community relations but also really advancing the geological program, exploration program, with people that really understand the rocks down there. And we also have a director based out of Brisbane at our regional office there… so very well set up from the point of view of having folks on the ground in Australia.


Gerardo Del Real
Gerardo Del Real: We talked a bit off air about the quiet period that most companies come into with the holidays approaching… and you joked that it's no letting up for you and the team.

Can you walk me through the flagship and then the exciting 2021 that you have in store because I understand you have a pretty aggressive exploration program that everybody should expect.


quinn
Rory Quinn: Yeah. Thanks for the question. That's really key to understand because we do… I mean it's probably the hottest gold exploration play in the world right now. And there's currently a land grab there in Victorian goldfields.

But this land package was not put together in the context of this current area play we're seeing now since the emergence of Fosterville South and the incredible job they've done that's creating shareholder value. This land package was put together in the context of 2016, 2017, when the Fosterville Mine itself was being proved up by Kirkland Lake. And when they were exploring the down plunge into the Swan zone and really showing that to be the world-class ore body that it is.

Our group was familiar with Beaufort, actually, since the ‘90s. The vendor, and one of the partners, Martin Pawlitschek; he used to work for BHP. And BHP were on the property in the ‘90s when they were in gold. They've since exited gold. But he was familiar with that property back then. And when it became available in 2016… he worked to pick it up.

And so obviously 2017, 2018… not the best markets. But now we've got this really great land package priority ground that was secured in 2017 and locked up in 2017, 2018.


Gerardo Del Real
Gerardo Del Real: Yeah. Not a great market to be selling into. A phenomenal market to be buying into, right?


quinn
Rory Quinn: Exactly.


Gerardo Del Real
Gerardo Del Real: Let's talk share structure, which, of course, is critical. I know the market cap is, what, approximately C$30 million give or take a few million… is that accurate?


quinn
Rory Quinn: I would say about C$35 million, C$40 million at this stage now post-financing. There's been some excitement there. So I think we probably raised in the context of about a C$25 million market cap. But trading today, it's probably closer to C$35 million, C$40 million.


Gerardo Del Real
Gerardo Del Real: And obviously success is going to lead to a re-rating, right? If the drill bit is kind and mother nature yields what you want, if you look at your peers… I mean, those market caps are triple-digits and four-digits; not double digits, right?


quinn
Rory Quinn: Exactly. I mean, I think we're at an attractive valuation here. I think current shareholders aren't willing to sell at these prices. So look, I think we need to get out into the field and advance our exploration program.

We'll look to be very newsy in the new year. I think us advancing the exploration there…  getting the drilling contracts, getting the targeting done, getting the drills on the ground, and being able to advance that in Q1, all happening in Q1… I think that's going to start the news flow, the catalyst flow, and I think we'll see a nice uptick.


Gerardo Del Real
Gerardo Del Real: Sounds like an exciting year. I'm looking forward to having you back on as all of that develops. Is there anything else that you'd like to add, Rory? I want to thank you for coming on. I appreciate it.


quinn
Rory Quinn: No, that's great, Gerardo. Thank you for having me. Just keep watching us. Look for E79 Resources (CSE: ESNR) in the New Year.


Gerardo Del Real
Gerardo Del Real: Fantastic. Thanks again.


Quinn
Rory Quinn: All the best. Bye-bye.




Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.
 


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