Discovering Gold In An Exciting New Mining Frontier

Angkor Gold (ANK.V; ANKOK.OB) is capitalizing on Cambodia's underdeveloped mineral wealth…and its shareholders are poised to win big in the process.

Dear Fellow Investor,

One of modern mineral exploration's most compelling stories is playing out in Cambodia at this very moment.

It starts with a country that has a long history of small-scale, artisanal mining — but that has seen little in the way of modern mining exploration.

That country is only now beginning to attract foreign investment and, along with it, the type of cutting-edge, systematic exploration techniques that can uncover large-scale resources.

And with an economy that's growing at 6%-7% per year, Cambodia is now attracting foreign investment like a magnet. Along the way, it has modelled its mining regulations after those of mining-friendly western Australia.

These trends make the country fertile ground for companies that can gain first-mover advantage by amassing a large land position and developing a strong working relationship with Cambodians and their government.

And thanks to a 983-square-kilometer land package built since in 2009, Angkor Gold is indisputably the first-mover in Cambodia.

Over $20 Million In Deal Flow Since 2009

A key driver of Angkor's large, in-country land-position is its "prospect generator" operating model.

Under that model, a junior explorer uses its early-stage geologic expertise to stake out quality projects. It then conducts initial exploration to establish the viability of those projects.

Then, for the more expensive parts of exploration like drilling and trenching, it seeks out partners to shoulder that burden in exchange for an earn-in on its projects.

Since Angkor started operating in Cambodia in 2009, it has attracted earn-in partners and private placements to support its work to the tune of $20 million. That includes two active earn-in agreements that total more than $5 million.

It also includes a past $1.8 million cash injection from Mesco Gold, a local subsidiary of an Indian steelmaker Mesco Steel.

With those funds, Mesco purchased the development-stage Phum Syarung gold project, and Angkor retained a 2.0%-7.5% sliding scale "net smelter return" royalty on production.

In addition, Mesco has an agreement to earn an 85% interest in Angkor's Oyadao North project by spending $1.25 million on exploration. Angkor will retain a 15% free carried interest in the project.

A Potential "Unicorn" Attracts a Japanese Major

In a sign of how much potential the industry sees in Angkor's portfolio, Japanese major JOGMEC recently agreed to explore Angkor's Oyadao South project. JOGMEC can earn 51% of Oyadao South by spending $3 million over three years.

Once JOGMEC reaches its initial earn-in, JOGMEC and Angkor will shoulder ongoing costs in proportion to their interest in the project, unless Angkor elects to dilute its interest by not contributing.

If Angkor's interest in the project dips below 15%, that interest will be converted to a 1.5% NSR. JOCMEC can buy 0.5% of the NSR for $1.5 million.

Since work was triggered in March 2017, JOGMEC has spent over $1 million exploring a copper-moly porphyry target at Oyadao South dubbed Halo.

That initial work identified previously unknown copper-moly systems at Halo. A Phase 2 exploration program, including drilling, will begin in the next few weeks.

Porphyry-style deposits tend to be quite large, hosting hundreds of millions (and sometimes billions) of pounds of copper.

And, in fact, one geologist examining the initial data from Halo described it as a potential "unicorn" in the making

Australian Partner Probes For Additional Ore

Seeing the potential for another of Angkor's projects, the Koan Nheak gold project, to provide ore for its nearby Okvau gold project, Australian company Emerald Resources agreed to a $2.2 million earn-in agreement on the project.

The deal includes a $200,000 cash payment to Angkor and $2 million of exploration expenditures over a two-year period.

Emerald will earn a 51% interest in Koan Nheak by meeting those targets and can earn another 29% by completing a definitive feasibility study.

Okvau is in the advanced permitting stage and hosts 907,000 ounces of gold reserves (14.26 million tonnes of 1.98 g/t). Angkor's nearby Koan Nheak project has shown encouraging early signs as an additional source of feedstock, with some eye-popping gold grades in sampling.

Consider this: A 2016 program on Koan Nheak's Peacock target yielded samples grading as high as 30.4 g/t gold. In addition, float breccia samples from the target's southeast river channel resulted in grades as high as 9.53 g/t gold.

A Phase 2 augur sampling program is underway on the 1,000-meter by 400-meter gold-in-soil anomaly outlined on the property.

Drills Are Turning

With drills turning at Halo, work ongoing at Koan Nheak, and a ripe target for another JV partnership in its Andong Meas gold project, Angkor Gold should keep the newswires humming the early part of 2018.

The commodities markets, and the gold market in particular, are both showing early-year strength. Companies with compelling projects and active work programs should deliver powerful leverage on these trends.

Angkor Gold offers exactly that type of leverage, courtesy of its strong partnerships and commanding portfolio of projects in Cambodia.

In addition, the value of a first-mover advantage cannot be overstated: The best gold targets are easier to find when you have little or no competition.

If you're looking for a speculative investment with the potential to multiply your money in the commodities bull market still to come, Angkor Gold is a company you simply have to consider.

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