The MRE has expanded the high-grade historical resource by 75%. With gold correcting to a more reasonable entry price for investors looking to break into the market, McFarlane's gold finds may be an opportunity that bears watching.
Mineral Resource Estimate
McFarlane Lake has released its initial MRE, which covers 46 drill holes over 10,437m in the Purdex Zone between November 2022 and February 2023. The MRE intersected significant quantities of gold near surface and at depth. The majority of the mineralization related to the High Lake deposit can be found in three stacked zones that lay within a 420m vertical by 220m along strike by 75m wide at surface area region. The thickness ranges from 1.2m to 9m.
The highlights of the report are as follows:
- On December 12, 2022, the company found 9.82 g/t gold (Au) over 9.75m within a depth of 20m from the surface.
- On January 9, 2023, it found 24.96 g/t Au over 14.9m at a depth of 325m.
- On January 25, 2023, it found 13.52 g/t Au over 6.5m at a depth of 229m.
- On February 7, 2023, it found 148.37 g/t over 1.3m at a depth of 107m.
- On February 28, 2023, it found 6.14 g/t Au over 24.55m at a depth of 15m.
- On March 6, 2023, it found 9.2 g/t Au over 26.4m at a depth of 280.
- On April 11, 2023, it found 8.27 g/t Au over 3.95m at a depth of 201m.
According to Mark Trevisiol, the president and CEO of McFarlane, "Few exploration properties match the gold grades we have seen at High Lake . . . We are delighted to cross this initial milestone now having compliant mineral resources at High Lake. The potential to expand these mineral resources is significant as the geophysical anomaly over our existing gold mineral resource area at the Purdex zone extends 300m to the southeast, where the anomaly is stronger yet."
Gold Prices Represent Critical Opportunity
Gold has seen high demand in the past few months as the dollar remains in a state of uncertainty. However, high prices for gold, which recently reached US$2,000 per oz, subsided last week.
The technical analyst Clive Maund predicts a bearish future for gold and silver.
Clive Maund rated McFarlane as an excellent stock to pick up because of "bonanza grade results from the Purdex zone of its High Lake property" and added, "If you are interested in buying this, it is thought best to get in as soon as possible after the open."
Maund states, "We can see that Commercial short and Large Spec long positions are at the sort of high readings that have typically in the past let to significant corrections . . . whilst there is, of course, no guarantee that readings won't become more extreme if gold and silver should advance anyway, current readings do indicate a high probability that a period of correction is starting."
The silver lining to this outcome is that costs have been prohibitively high for some investors looking to break into gold.
Gold's drop down to US$1,977 per oz may represent an opportunity for investors. According to Stockwatch, the source of this drop may be the Chinese and Indian markets, where a depreciation in currency value has stymied the demand for gold jewelry. S&P Global Market Intelligence reports that "with spot gold prices currently above US$2,000/troy oz, and the Indian rupee and Chinese yuan depreciating 7% and 4% year over year, respectively, against the US dollar, retail jewelry demand will decline over the next six months."
McFarlane's properties have impressed in the past. In February of this year, Clive Maund rated McFarlane as an excellent stock to pick up because of "bonanza grade results from the Purdex zone of its High Lake property" and added, "If you are interested in buying this, it is thought best to get in as soon as possible after the open — not all investors will have cottoned on this news yet and so, even though it may gap up at the open, it is likely to surge higher during the day once available supply around these levels is absorbed."
McFarlane has a portfolio of six properties, all of which are owned entirely by the company and have previously identified gold mineralization. Three of these properties are past producers of gold. All six properties are located in Canada in mining-friendly jurisdiction and near infrastructure with significant populations of skilled labor.
McFarlane Lake Mining is currently exploring its strongest properties, High Lake and West Hawk Lake. West Hawk Lake expanded gold mineralization at depth in two zones, and established continuity in gold mineralization, and confirmed the existence of high-grade intersections during drilling in January 2022. McFarlane has begun drilling at High Lake.
Assay results for exploration at High Lake are expected to be released in H1 of 2023. McFarlane will publish a 43-101 technical report for High Lake and West Hawk Lake in H2 of 2023. This report will include a compliant resource statement for High Lake.
Streetwise Ownership Overview*
Ownership and Share Structure
Management and insiders own 24.24% of the company shares. Mark Trevisiol owns 10.03% with 11,356,000 shares, Perry Dellelce owns 8.08% with 9,150,000 shares, Dario Zulich owns 3.05% with 3,451,000 shares, Roger Emdin owns 2.80% with 3,170,000 shares, Fergus Kerr owns 0.27% with 300,000 shares, and Charles Lilly owns 0.01% with 12,500 shares.
As for institutional investors, Canadian Star Minerals Ltd. owns 11.42% with 12,925,000.
As of February 28, it had CA$421,612 in cash and cash equivalents. It has a burn rate of CA$100,000 per month outside of exploration costs. The company reports no monthly drilling rate.
McFarlane has a market cap of CA$13.6 million and has 133,183,845 shares, 16,521,247 warrants, and 9,650,000 options outstanding as of April 25. It trades in the 52-week range between CA$0.0101 and CA$0.1100.
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- McFarlane Lake Mining Ltd. is a billboard sponsor of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of McFarlane Lake Mining Ltd.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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