Swinging for the fences in Alaska
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Swinging For The Fences In Alaska
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Some junior explorers just aim higher than other companies in the sector.
That’s certainly true of Tectonic Metals (TECT.V; TETOF.OTC) — a small company, who has done it before and is now on the cusp of drilling the next multi-million-ounce gold deposit near the fifth largest gold deposit (+39M ounces of gold) in the world.
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That’s the essence of Tectonic Metals’ (TECT.V; TETOF.OTC) business model, and it’s already playing out with Flat, the company’s flagship gold project in Alaska.
Flat lies just 40 kilometers from the Donlin gold project, one of the largest undeveloped gold deposits in the world (39 million ounces of measured and indicated resources) owned 50-50 by Barrick and Novagold.
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With a history that makes it the fourth richest placer mining jurisdiction in Alaska with recorded placer gold production of 1.4 million ounces, Flat encompasses the massive Chicken Mountain prospect believed to be the hard-rock source of all that gold.
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Tectonic Metals notes that a four-kilometer-long gold-in-soil anomaly (mostly still untested) and its accompanying 55 historical drill holes ALL hitting gold mineralization at Chicken Mountain are indicative of a large gold system capable of hosting millions upon millions of ounces of gold...and it’s set to start testing that theory.
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A Project With Multi-Million-Ounce Potential That Has Been De-Risked
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Flat comes with a good amount of past exploration work, including 55 drill holes.
That drilling encountered mineralization in every single hole — an astonishing hit rate for a gold exploration program. Plus, 25 of the 55 holes ended in mineralization...and the average vertical drill depth was just 96 meters.
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That leaves a huge, potentially untapped amount of mineralization lying at depth and along strike at Flat, which, as you can see from the image above, is open in multiple directions.
Add in the exceptional grades and widths from previous drilling...the obvious potential extensions from that mineralization...the fact that this is the apparent source for 1.4 million ounces of placer gold production...and this is arguably one of the top exploration targets to be found today.
Tectonic believes in this project so much that it conducted various metallurgical tests on historical drill core as its first step...and may be the only junior that comes to mind that has done that before.
Metallurgy is one of the key risk items for determining a project's economic viability. In the case of Flat, the project passed this test with flying colors by achieving an average of 96.8% gold recovery.
In fact, given all the characteristics of the Flat project, one question pops to mind:
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Could This Be
The Next Fort Knox?
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In size and mineralization style, Flat resembles Fort Knox — the largest active gold mine along the Tintina Gold Belt in Alaska.
Fort Knox, owned and operated by Kinross Gold Corp, has already produced 7.54 million ounces of gold and has remaining mineral reserves of 3.37 million ounces. Another major mine in the belt, the Eagle Mine, owned and operated by Victoria Gold Corp., in the Yukon, has a measured and indicated resource of 4.4 million ounces.
As you can see from the graphic below, the target area for mineralization at Flat is twice that of Fort Knox and more than four times that of Eagle.
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Granted, Tectonic has work to do before it could show anything close to a deposit on the order of a Fort Knox or an Eagle, but the potential for the company to do so is clearly there.
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Another analog to consider when looking at Flat’s potential is the Valley discovery on Snowline Gold Corp.’s Rogue project in the Yukon.
Snowline’s market cap has catapulted in the past year to over C$300 million thanks to its first ever drill program producing long intervals of mineralized gold coming from Valley.
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One way to think about Flat is as an earlier-stage version of Valley, where drill testing is proving to outline what looks like a major new deposit of the same mineralization style and is located along the same Tintina Gold Belt as Flat.
Drilling success on Flat could deliver a Snowline-esque re-rating in Tectonic Metals’ share price.
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Allied With A Key Native American Group
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One key advantage Tectonic Metals brings to the table is its relationship with Doyon, Ltd., one of Alaska’s largest for-profit Native Regional Corporations.
Doyon is the largest private landholder in Alaska, and Tectonic has leased Flat, along with four other projects, from Doyon.
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But the relationship doesn’t stop there. Doyon is also Tectonic’s second largest shareholder, having made C$3 million of strategic investments into the company.
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The agreements Tectonic has made with Doyon include innovative discovery-to-production and ESG stipulations.
Most exploration companies don’t even start thinking about such agreements until they’re much further down the road.
Tectonic, however, was innovative in getting everything locked in at the beginning of its exploration, thereby taking a good chunk of the project risk out of Flat before it even starts to drill the project.
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Headed By The Team That Led
Kaminak Gold To A Jackpot Takeout
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Another key advantage for Tectonic Metals is its management team, which includes some of the key players in Kaminak Gold’s development from green fields, never-drilled-before Coffee property to a +5 million ounce gold resource to a C$520 million takeout.
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It’s a leadership group that includes Tectonic President and CEO Tony Reda, who helped raise more than C$165 million to advance Coffee along the development curve.
It also includes Tectonic Chair Allison Rippin Armstrong, an environmental biologist, who served as the Vice President of Sustainability for Kaminak and has been involved in some way, shape or form in the permitting of nine mines in Canada.
And it includes Tectonic founder and strategic advisor, Eira Thomas, who guided Kaminak to that lucrative takeout in 2016 as CEO of the company and previously discovered with her father Canada’s second largest diamond mine.
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Collectively, the Tectonic leadership team is a group that knows how to advance projects and how to make money for shareholders.
They’ve come together at Tectonic to conduct an encore performance at Flat.
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With gold poised to breakout once the Fed finally stops raising rates, this is the perfect time to get positioned in gold explorers with a real shot of making a major discovery.
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Tectonic Metals fills that bill nicely thanks to the Flat project, with its similarities to the Fort Knox mine and the Valley deposit and its proximity to the massive Donlin project.
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The prospect that Tectonic will outline a multi-million-ounce resource at Flat is very real, and the company is on the verge of its first exploration steps to make it a reality.
As a gold explorer with a legitimate shot at one of the bigger discoveries in this cycle, Tectonic Metals deserves your due diligence sooner rather than later.
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CLICK HERE
To Learn More about Tectonic Metals Inc.
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