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To value a gold/copper exploration company is difficult without an NPV calculation in a 43-101. Therefore I try to do a comparison analysis on the grades of the findings.
I tried hard making this market comparison comparing grades reasonable, or at least summarize, for 5 different companies at 14-6-2023 ($TCO market cap $6mln vs $TWR $15mln vs $YORK $14mln vs $RSMX $23mln vs $NINE $6mln) while comparing grades from news releases, company websites and investor presentations. The main purpose is understanding the grades and these companies better, from the perspective of the grades.
All info from Investor Presentations, company websites and press releases (please correct if I'm wrong putting the data together by writing under the article, that makes it easy to follow for all interested readers). Difficult to make a good comparison as each company has a lot to look at, so the data is selective which may create a biased look, but I try to get a better picture :). One project is more focused in gold, another copper, another zinc.
First depth in meters and then grades:
Gold = Au
Silver = Ag
Copper = Cu
Zinc = Zn
$TCO has $6mln market cap. Enough cash for exploration which is happening.
http://www.transatlanticminingcorp.com/wp-content/uploads/2022/12/TCO_PresentationDecember2022.pdf
http://www.transatlanticminingcorp.com/projects/
Jubilee project - press release 13-4-2023:
At 64m 7.8 g/t Au
At 87m 5.5 g/t Au (lowest grades for this project update that I found)
At 111m 13.1 g/t Au
Jubilee project - Table on page 10 of investor presentation show I think Silver in the table and gold in the picture:
At roughly 47m - 70m there grades were grades of 10.1 (GJC-3) g/t Au. The lowest are 2 g/t Au but most are between 2 and 10.
Monitor project (here we have copper, gold and also #silver with these grades):
15% CU average production till 1910 when it stopped producing after a surface fire, 7.2 g/t Au and 22.5 g/t Ag associated.
Monitor average grade of historic reported Cu produced was 15% Cu with highest reported grade 30.5% Cu.
Recent maximum assay results from the mine waste dumps returned values of 13.55% Cu, 15.45 g/t Au and 57.7 g/t Ag.
http://www.transatlanticminingcorp.com/projects/monitor/
Miller project (new uncovered Lower Winze Drive = old shaft):
Water is being pumped out of the mine and has uncovered a new Lower Winze Drive with first grab samples of 27.6 g/t Au (press release 14-6-2023). Visual gold has been observed (no wonder with such high grades).
2 initial grab sample assays:
Quartz 0.25 g/t Au and 9.3 g/t Ag.
Non Quartz 27.59 g/t Au and 14 g/t Ag. (source: https://ceo.ca/@newsfile/transatlantic-mining-extension-and-execution-of-first)
Miller project (sporadic production 1901-1948):
Miller had an average recovered grade mined of 7.94 Oz /ton Au and 4.65 Oz /ton Ag.
A Hole #1 was drilled 300 feet below the lowest recorded workings and recorded 14.7 Oz /ton Au (DDH_01).
Pending lab results for the mud gravity table.
$TWR has $15mln market cap (gold and small copper).
Rabbit North project (page 20&21) with a long list of findings but these are highlighted in the presentation and last press releases:
At 19m 4.2 g/t Au (RN21-026)
At 95m 1.42 g/t Au (RN21-026)
At 247m CU 0.5% 0.3 g/t Au (Best copper intersaction according to investor presentation page 12)
Also there is 0.57% CU in this press release https://www.towerresources.ca/index.php/news/2023-news/275-oweresourcesnnouncesole042atabbitorthits72420230420123503
Thunder Zone project:
At 125m 3.3 g/t Au (Hole 041)
At 157m 2.2 g/t Au (Hole 041)
At 143m 4.0 g/t Au (Hole 039)
At 164m 2.0 g/t Au (Hole 039)
$YORK has $14mln market cap (copper and zinc and also silver). A different situation with the high grades in Zinc but also focused in copper helps with a rough comparison I think. Good to compare a company with high grades. For reference "The zinc content of mined ore is usually between 3 and 10 percent" https://www.britannica.com/technology/zinc-processing/Ores.
Results from Phase III:
At 174m CU 1.69%, 11.9% Zn (Zinc) and 18.3 g/t Ag (silver) (YH21-22 page 12 of presentation)
At ??m CU 5.3%, 0.8% Zn (Zinc) and silver 9.0 g/t Ag (Hole 24 / YH21-24 page 13 of presentation)
At ??m CU 2.7%, 9.0% Zn (Zinc) and silver 17.8 g/t Ag (YH21-18 page 13 of presentation)
See also the table on page 13 of presentation
https://yorkharbourmetals.com/presentation/
Phase IV:
Drill hole YH22-73 intersected 44.93 metres of 1.292% copper including 5.36 metres of 2.938% copper
$RSMX has $23mln market cap (Silver and some gold and copper). New results out on 24-4-2024.
This is a focus on silver but comparing results I believe TCO is up for better stock price as the grades are closer to the surface
At 454m 5.5 A/u, (REG-23-14)
At 540m 0.6 A/u, (REG-23-13)
At 317-536m <1.0% CU (inc)
Next is $NINE with $7mln market cap for the focus on copper (and zinc), 4 projects of which 2 I shall highlight.
$NINE has $6mln market cap with $1mln CAD cash to fund exploration which is happening. No debt.
Wedge Mine Project: (update 6-6-2023)
XRF results for VMS mineralization
At ??m 9.8% Cu (W23008 (4))
At ??m 8.8% Cu (W23009 (4))
Notable there was also 5.8% Pb and 17% Zinc in a different sample (W23001 (6))
Nine Mile Brook Project:
Has produced for 49 years with production totalling 137 million tons grading 8.74% Zn, 3.44% Pb, 0.37% Cu, and 102 g/t Ag from 1964-2013.
Assays Certified to 38.18% (Pb-Zn) 7.527% (Cu) 14.5 oz (Ag) & 2.894 g/t (Au).
On March 27, 2023, the Company has completed 8 holes totalling 1,329 metres of a planned 5,000 metre fully funded drill program.
https://ninemilemetals.com/projects/nine-mile-brook/
https://ninemilemetals.com/projects/
What are high grades? Look at this table:
Source: https://www.bullionbypost.co.uk/index/gold/gold-grade/
It's very difficult to put a value on an exploration stock as we don't have NPV values.
So assuming all stocks have potential and are relative safe buys, then $TCO is a bargain comparing market cap and grades! 4 winners and 1 multibagger (Disclaimed: do your own DD)!
I feel very comfy holding $TCO as biggest position seeing the highest grades and 3 projects.
I feel very comfortable with $TCO as I think these 4 other stocks are fairly valued to buy with good potential. I'm excited on what the results will be for $NINE. I think its all interesting long term buys to hold for investors (in my opinion, good positions but disclaimer: this is not investing advice. Do your own DD and make your own decisions).
#gold #copper #index #boardroom
