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Watch These Gold Exploration Companies by Gerardo Del Real
Several weeks ago I had the pleasure of interviewing Mawson Resources (TSX-V: MAW)(OTC; MWSNF)CEO Michael Hudson.
Michael had just returned from PDAC and when I asked him about the overall sentiment and what was different from past years, Michael replied that “exploration was back.”
Mawson is a leading Nordic exploration company with a focus on the flagship Rajapalot and Rompas gold discoveries in Finland.
The company is currently exploring an exciting, high-grade district-scale project that had stalled during the latest commodity bear market due to a combination of lower commodity prices and permitting issues.
With permits in hand and a better commodities market, Mawson is well positioned to capitalize on a better market and it’s recognized the opportunity by mobilizing several drill rigs to Rompas and Rajapalot.
Two diamond drill rigs remain at site. 53 holes have been completed to date, totaling 10,250 meters of diamond drill core.
A total of 19 holes have been reported, while results are pending for an additional 34 completed holes. A further three diamond drill holes are planned to be drilled before the completion of the winter program.
For over four years exploration was curtailed at best and often times completely shelved as producing companies were forced to slash budgets and high-grade deposits in order to survive.
Bloomberg reported exploration budgets hit an 11-year low of approximately $10 billion last year.
Although exploration budgets are rising we have yet to see the type of discoveries that set off a rush.
“We are coming out of the bottom of the cycle. I actually see the opportunity for the exploration sector to regain its mojo and quickly deliver a pipeline of good discoveries,” said Richard Schodde, managing director of Melbourne-based MinEx Consulting Pty, an industry adviser.
Only 12 tier-one projects (deposits with a net present value of over $1 billion) were uncovered in the past decade compared to an average of two to three a year since 1950, according to MinEx.
MinEx also reported that the average cost of finding a significant mineral deposit has tripled in the last 10 years to about $238 million.
The misallocation of capital during the last commodity price boom has led to quality deposits taking longer to be bought out and for exploration companies to be cautious about what they drill.
Along with Mawson, there are, however, several drill programs worth keeping an eye on over the next few months. Drill programs that could deliver big gains over the traditionally slow summer months.
Here's what I’m watching.
Almadex Minerals (TSX-V: AMZ)(OTC: AXDDF)
Almadex Minerals is exploring El Cobre, an exciting copper-gold project in Veracruz, Mexico.
The El Cobre Project has a total area of 7,456 hectares and is located adjacent to the Gulf of Mexico, about 75 kilometres northwest of the major port city of Veracruz, Mexico, and has uniquely excellent infrastructure.
The project area is situated 200 meters above sea level with extensive road access and is located less than 10 kilometers from a power plant, highway, gas line, and other major infrastructure.
Critics of El Cobre highlight that thus far the copper-gold grades have been lower grade than many producing copper-gold projects.
It’s important to know that the excellent infrastructure in place will go a long way towards making future economics favorable for the project but it is still early-stage and Almadex CEO Morgan Poliquin and the team appear to be zeroing in on the orientation of the deposit.
I don’t believe it's a coincidence that the company reported its best hole to date at the project on April 5, 2017 hitting 342 meters of 0.60 g/t Au and 0.27% Cu, including 193.3 meters of 0.93 g/t Au and 0.38% Cu.
These results are from the Norte Zone where there are currently two drills turning.
Almadex is also preparing to drill the Villa Rica zone, which is a bigger target than El Norte and a target that recently confirmed another copper-gold porphyry though channel sampling.
You can listen to Morgan explain the importance of the outcrop at Villa Rica and how Almadex intends on following those results here.
With a strong cash position of nearly C$5.5 million, six 100%-owned drills, and a market cap of less than C$55 million, Almadex has a lot of upside if the truth machine proves up a significant and economic resource at El Cobre.
It’s early, but this is a team that knows this part of Mexico better than anyone in the world and few companies in the junior space execute the exploration process better than the team at Almadex.
Cordoba Minerals Corp. (TSX-V: CDB)(OTC: CDBMF)
Cordoba has a joint venture with High Power Exploration (a company indirectly controlled by mining legend Robert Friedland) on the highly prospective, district-scale San Matias Copper-Gold Project located at sea level with excellent infrastructure and near operating open-pit mines in the Department of Cordoba.
On February 1, 2017 Cordoba announced that two rigs had been mobilized to San Matias.
The Alacran copper-gold system has seen the bulk of drilling thus far. The Alacran copper-gold system is located within the San Matias Copper-Gold Project and comprises a 20,000-hectare land package on the inferred northern extension of the richly endowed Mid-Cauca Belt in Colombia.
Initial inferred resources at Alacran are 53.5 million tonnes of 0.70% copper and 0.37 g/t gold. I expect a resource update later this year that increases that tonnage to the 75 million tonne range.
The project contains several known areas of porphyry copper-gold mineralization, copper-gold skarn mineralization, and vein-hosted gold-copper mineralization.
Like Almadex and the El Cobre project, Cordoba’s first target may not be the most exciting one.
On January 23, 2017, Cordoba announced the discovery of bonanza-grade gold veins at Alacran where hole ACD036 intersected 0.9 meters of 4,440 g/t gold, 10.25% copper, 24.7% zinc, and 347 g/t silver.
Drilling now will be focused on testing the extent of the newly discovered, bonanza-grade, structurally controlled, Carbonate Base Metal (CBM) veins, and the up-dip eastern extensions of the Alacran deposit.
Everyone familiar with Robert Friedland knows that he isn’t shy on drilling if he feels there is a tier-one discovery possible.
To continue reading please click link http://www.outsiderclub.com/exploration-company-drill-programs-gold-discoveries/2299