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| It’s always good to do your homework in advance on resource companies.
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| Especially in a bull market, new companies can list publicly in droves.
That’s why, when you hear of a name with a good story that’s looking to list soon, it pays to play the long game, even if you can’t invest in the company now.
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| With that thought in mind and with gold in a bull market, now seems a good time to introduce you to Seventy Ninth Resources.
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| An offshoot of an international real estate company based in the UK, Seventy Ninth Resources has acquired exciting precious and base metal assets in Guinea, West Africa and Ontario, Canada.
As you’re about to see, the company follows the prospect generator model of exploration and is getting its projects ready to be joint ventured.
That model has several advantages, and it has allowed Seventy Ninth to amass a highly prospective portfolio of exploration assets.
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| The Advantages Of Being A Prospect Generator
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| Prospect generators stake properties and conduct early-stage exploration on them.
They then use that early-stage data to attract larger companies to earn a stake in those properties. Those companies generally commit to financing the more expensive parts of exploration like drilling.
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| When done well, the model allows the prospect generator to keep exploration going on a variety of different projects, while minimizing its own cash burn rate and the dilution of its share structure.
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| Another advantage of the model is it keeps the news flowing, which is a big deal for smaller companies who need to get the market’s attention.
In exchange for what is often a majority share in a project, a prospect generator like Seventy Ninth Resources maintains a stake in the upside of any discovery made on that project.
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| Five Gold Projects In Guinea
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| Seventy Ninth’s portfolio is anchored by five gold projects in underexplored Guinea.
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| The country already hosts some of the world’s largest mining companies, including AngloGold Ashanti and Rio Tinto.
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| Mining accounts for 24% of government revenues, and the country is considered prospective for new deposits that can be discovered with modern mining techniques.
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Seventy Ninth holds five major gold concessions in Guinea’s Under-Explored Siguiri Basin
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| Seventy Ninth’s projects, located in the Siguiri Basin in the country’s eastern sector, include the following:
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- LS: This 44.8-square-kilometer project is located 20 kilometers east of AngloGold’s Siguiri gold mine. It has two targets defined by drilling, which include highlights of 15.37 g/t gold over 6.0 meters and 2.0 g/t gold over 9.0 meters. The project is ripe for follow-up drilling.
- LM: This project spans 48.5 square kilometers and lies eight kilometers northwest of Hummingbird Resources’ Yanfolila gold mine. It possesses numerous gold-in-soil anomalies. Seventy Ninth plans to follow up these early findings with more geochemical and geophysical surveying to identify drill targets.
- LN: This 41.2-square kilometer property lies along strike of LS and has only seen some early-stage, license-wide soil geochemical work.
- RES3 & RES4: These two properties, which together span 108 square kilometers, are two recent additions to Seventy Ninth’s Guinea portfolio. Both contain multiple artisanal gold workings worthy of initial follow up when the rainy season ends.
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| A Gold And A Base Metal-Silver Project In Ontario
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| In addition to its Guinea projects, Seventy Ninth has also recently acquired two projects in northwest Ontario along the province’s side of Lake Superior.
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Seventy Ninth holds five major gold concessions in Guinea’s Under-Explored Siguiri Basin
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| The first is the McKellar project, a base metals and silver project located on the Trans Canadian Highway 56 kilometers west of Barrick’s Hemlo gold mine.
Early-stage exploration on McKellar has identified a three-kilometer-wide target that returned grab samples as high as 4.73% copper, 32.3% zinc and 678 g/t silver. The next step here is to conduct a more detailed mapping and sampling effort along the contact zone.
The other project, located a bit further west, is called Enable. It’s a gold project that has produced grab samples grading as high as 7.04 g/t gold and 5.25 g/t gold.
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| Seventy Ninth’s Goal:
A Highly Valued Royalty Company
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| As is fitting of a prospect generator, all its properties, as you can see, are at an early stage of exploration.
That puts the company in great position to carry out its plan and conduct follow up work on these properties. Once they’ve been outlined in enough detail, these projects will then allow Seventy Ninth to find joint venture partners to explore them more extensively.
Again, this model of exploration allows the company to have more active projects making news while it conserves its cash. Exploration is a numbers game — the more projects, the more chances for a big discovery.
The long-term plan is to convert the most prospective of these projects into royalties and have Seventy Ninth Resources graduate to being a royalty company.
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| Those companies tend to draw the highest market valuations by every measure, especially in times of rising gold prices.
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| With everything it has going for it, Seventy Ninth Resources could quickly become a leader in the junior exploration game.
But here’s the rub: The company is planning on listing publicly next year on the Canadian markets and you can’t invest in it now. However, that doesn’t mean you can’t start doing your due diligence right away to get a jump on the rest of the market.
If you like what you’ve heard so far, you’ll want to click below to learn more.
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| CLICK HERE
To Learn More about Seventy Ninth Resources
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