There are a ton of tiny juniors out there who are taking advantage of a more favorable financing market to cash up and get cranking. One, with a tiny market cap of about $5 million at the time, contacted me a few weeks back with an interesting story. They wanted to advertise and were coming out with a private placement so I bought into it.
The market quickly understood what the company had so the shares doubled before the placement closed. In fact, the demand was so brisk they had to raise the price and doubled the size of the pp.
The company is called Grande Portage Resources Ltd. (GPG:TSX.V) and they have a most compelling story. Their Herbert gold prospect in SE Alaska, just west of Northern British Columbia, is in the midst of the Juneau gold belt that has produced seven million ounces of gold to date. They own 100% of the project.
A 43-101 released in May of 2019 revealed an indicated resource of 607,000 ounces of gold at a 10.03 g/t grade while the inferred resources showed an additional 252,000 ounces of gold at a grade of 14.15. The six veins that GPG has located on the project are mesothermal in nature which can mean they go as much as eight times as deep as they are long. With grades such as that, it's easy to understand why the market has leapt onto the story.
Met tests on the material averaged about 92% using a combined gravity and flotation system. It's not often that you get such high grade material combined with impressive recovery. The 160 km Juneau gold belt is home to half a dozen gold mines with more located to the east in Northern British Columbia.
The company is well cashed up for an upcoming drill program just having completed a pair of private placements totaling over $1.5 million. In addition the company has about 14.7 million warrants at $0.15 and $0.16 good for another 18 months that would bring in an additional $2.2 million. Since they are already in the money, when the four month hold period expires in May expect a steady flow of cash coming into the company coffers.
The 2020 drill program calls for about 6,000 meters of drilling using up to seven drill stations. Results from the past 154 drill holes are bordering on the absurd. They include 37.07 g/t Au over 15.7 meters and 59.91 g/t gold over 8.08 meters and many more showing those numbers are not outliers. Those are world class numbers. The system is very predictable. The company has never missed a vein when drilling. Mesothermal vein systems can do deeper than 1000 meters. The deepest the company has ever drilled is 225 meters. They calculate that 80% of the project is untested.
With such a tiny market cap of $13 million CAD that makes high grade gold located in a friendly and safe mining jurisdiction worth about $11 an ounce in USD. That is not going to last for long. I don't have a feel as to how many ounces they can add with 6000 meters of drilling but when these guys hit 2 million ounces the majors are going to start breathing hard. This will be a natural takeover target.
Grande Portage is an advertiser and I have participated in one of their last private placements. Naturally I am biased so you should do your own due diligence.
Grande Portage Resources
GPG-V $0.205 (Feb 14, 2020)
GPTRF-OTCQB 67 million shares
Grande Portage Website.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Grande Portage. My company has a financial relationship with the following companies mentioned in this article: Grande Portage is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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