Small-cap E2Gold Inc. (ETU:TSX.V) currently is engaged in an early-stage gold exploration project drilling at its 60-kilometer-long Hawkins property located between Ontario’s historic Sault Ste. Marie and Timmins mining districts.
Dr. Hennigh, a long-time mining and exploration expert, said in a recent Streetwise Live! video that E2Gold’s prospects look comparable to the great Hemlo project, which turned out to be the largest single gold deposit in Canada. As Canada’s most prolific operating gold mine, Hemlo has produced 24M oz Au to date. E2Gold’s Hawkins property, Hennigh said, is only about 110 kilometers away from the Hemlo operation and shares much of its geologic attributes.
“Already, it is much like Hemlo at shallow depths,” Dr. Hennigh said, “and the company is committed to drilling deeper holes and testing the hypothesis that there may be Hemlo-like deposits at depth in its McKinnon zone.”
"...The company presents an exciting opportunity if an investor wants to swing for the fences.”
For gold investors, Hennigh noted that the price of the metal is now in one of its quiet periods and likely looking for a reason to rise. “The discovery of a Hemlo-like find would be remarkable,” Hennigh said. “Of course, there is no guarantee of that, but E2Gold is doing diligent testing of the hypothesis. Its basis for testing at a deeper level is well founded, and the company presents an exciting opportunity if an investor wants to swing for the fences.”
“Hemlo is Canada’s most prolific operating gold mine, having produced 24M oz Au to date. Currently operated by Barrick Gold, the mine is only 150 km west of E2Gold.”
Given the firm’s potential, independent technical analyst, Clive Maund wrote on September 7 that he recommended E2Gold in June, expecting a further advance. Instead, the stock remained in a base pattern. “However, its technical condition has continued to improve.” Completing what is known as a Double Bottom, he said the stock’s base pattern has been accompanied by positive volume and strong volume indicators, “with both the accumulation line and on-balance volume hitting new highs, which together make the probability high that this base pattern will lead to a bull market in the stock.”
Fundamentally, Maund wrote, “All the pieces are in place for a new bull market in gold to develop.” With that as a backdrop, Maund is optimistic for E2Gold’s prospects.
“With a successful financing behind it and a robust drilling program underway, the outlook is bright,” he wrote. “The stock is clearly not expensive here, having barely advanced out of its base pattern . We therefore stay long, and it continues to be rated a buy at these levels.” In addition, the company reported in an August 26, 2021, press release that it is adding a second drill rig.
In the same video, Dr. Eric Owens, President, CEO, and a Director of E2Gold, described the capitalization structure of his company.
“We have 95 million outstanding shares, 65% of which are tightly held,” Owens said, adding that eight funds, led by Crescat, are now among the company’s shareholders. Based on E2’s latest investor presentation, 15% of stock is owned by insiders and 27% is owned by funds, including Crescat Capital, which owns 11%.
Streetwise Reports Disclosures:
1) Evan Cooper compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: None. He/she or members of his/her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
2) Dr. Quinton Hennigh is Crescat Capital’s full-time Geologic and Technical Director. You should assume that as of the publication date, Dr. Hennigh has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves.
3) Clive Maund or members of his/her household own securities of the following companies mentioned in the article: None.
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