Tuesday, August 23, 2022
Element79 Gold Corp. (ELMGF)
Contemplating Upcoming Catalysts
Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent* “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag)) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the past-producing Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the past-producing Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Near-term catalysts. Upcoming catalysts include: 1) completion of a previously announced private placement to fund work programs through the balance of 2022, 2) potential monetization of properties within the Battle Mountain portfolio, and 3) commencement of work programs in Nevada and Peru. Additionally, we think the company could close on its planned acquisition of the Snowbird High-Grade Gold Project as early as September. Recall the project consists of 2,276 hectares across ten mineral claims in Central British Columbia and can be drilled year-round.
Financing. We expect proceeds of up to C$2 million from a private placement announced previously to help fund exploration through the balance of 2022. We have modeled a larger C$5 million equity financing during the quarter ending in November to accelerate progress into 2023. Partial or full monetization of properties within the Battle Mountain portfolio could allow investors to better value the remaining portfolio in addition to providing a source of funding….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.