After backing a string of big winners, The Discovery Group has landed on its next top bet: Genesis Metals (GIS.V; GGISF.OB).
Dear Fellow Investor,
Follow the smart money. Always.
This is good advice when it comes to making investment decisions, but it’s especially useful when trying to pick winners in the junior resource sector.
That’s because exploration companies are chasing projects with potential, but not necessarily a bona fide discovery. In that environment, your best bet is to invest alongside teams that have a proven track record for picking the best projects, assembling the best teams and building value for shareholders.
All those boxes are ticked by The Discovery Group, which has backed a glittering list of junior resource companies that includes some of the sector’s bigger winners in the past few years.
Winners Win
The Discovery Group has become renowned for their skill in picking and building tremendous success stories in the junior mining space. Consider the track record of the companies they’ve been involved in:
•Kaminak Gold’s multi-million-ounce Coffee resource in the Yukon was acquired by Goldcorp for C$520 million in 2016...
• Northern Empire Resources scooped up the Sterling gold project in Nevada in 2017, and quickly began to establish the project’s value via the drill bit. Fast forward to August 2018, and Coeur Mining snapped up the company for C$117 million.
• Bluestone Resources was able to acquire a high-grade gold project in Guatemala — one that had over $200 million already spent on exploration and development — for pennies on the dollar. Now it has a 1.2 million-ounce resource at over 10 g/t gold and is on the fast track to development.
• Fireweed Zinc came public in early 2017 and quickly tripled in value as it drilled long intersections of high-grade zinc on its McMillan Pass project in the Yukon.
• Great Bear Resources has soared more than 10 times in value — and could rise much higher yet — as its aggressive drill program defines what may be the next huge Red Lake gold deposit.
Given that track record, it’s obvious that the Discovery Group team has an astute eye for value.
Which is why investors are eager to discover what could be their next big winner....
Joining Forces With Genesis
Now the Discovery Group has turned its attention to none other than Genesis Metals (GIS.V; GGISF.OB).
The team added Genesis to its company portfolio in February, an endorsement that speaks volumes about this junior explorer’s potential.
Led by CEO and Chairman Brian Groves and President and Director Jeff Sundar, Genesis’s flagship project is its 100%-owned Chevrier gold project in Quebec.
Chevrier lies on the eastern end of the famed Abitibi Greenstone Belt that stretches from eastern Ontario into Quebec. The Abitibi is one of the world’s most prolific gold districts, having produced more than 170 million ounces of the yellow metal.
Chevrier’s resource-hosting Main zone was first drilled by Inmet Mining in 1989 and then outlined by subsequent owner Genova Explorations.
In 2007, a company called Tawsho took ownership of the property, plying it with 24 holes and surface work and producing a resource estimate for the project.
But a crushing bear market in metals and mining turned many projects loose, and Genesis was quick to grab Chevrier in late-2015 at the bottom of the gold market.
Since then, Genesis has conducted 10,000 meters of drilling, inventoried 70,000 meters of historic drill core and established a significant resource potential for the Main, South and East zones.
Gold In The Ground Now
Plus Tremendous Exploration Upside
All that work led to Genesis’ recent update to the global resources at Chevrier. Between the Main and East targets, those resources consist of 423,000 ounces of indicated gold and 303,000 ounces of inferred gold.
That’s an excellent resource base to start from, especially when you consider that the Main zone remains open at depth and that the company has outlined an array of inviting targets elsewhere on the project.
Because of Chevrier’s location in the legendary Abitibi belt, the project has all needed infrastructure to develop a mine. The Chibougamau mining district where the project sits boasts more than 6.7 million ounces of historical gold production itself.
Nearby infrastructure includes regional roads, a CN rail line, power and even an airport.
Quebec overall is an excellent mining jurisdiction, with 25 producing mines and mining-friendly exploration policies.
Add in an abundant supply of cheap electricity and government subsidies for exploration, and the province is one of the best places in the world to look for and build a mine.
A Lever On Rising Gold Prices
Thanks to the established value in the ground at Chevrier, and the longer-term exploration possibilities of Genesis’ October project in Ontario, Genesis is well-positioned to provide powerful leverage on rising gold prices.
Consider that future exploration at Chevrier could boost its gold resources well over the crucial million-ounce mark. With potential at depth on the Main zone and the possibility of finding more gold elsewhere on this district-scale property, Genesis’s upside is clearly substantial.
And the big news is that Genesis now has the key pieces in place to realize that potential.
You see, the company’s management team now has the backing of the Discovery Group, a combination that should help the company maximize Chevrier’s considerable potential.
In fact, the Discovery Group’s technical expertise is already being put to work in generating new drill targets at Chevrier.
Unlike the other successes detailed above, it’s still early for Genesis Metals. The Discovery Group’s track record of winners argues strongly for investors getting onboard their next big venture now.
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