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A pure play gold story in a world class mining jurisdiction.
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That’s what Maple Gold Mines (MGM.V; MGMLF.OTC) offers gold bugs on the hunt for ways to leverage the next bull market in the yellow metal.
Here’s why....
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Maple Gold Mines has formed a strategic partnership and a 50/50 joint venture with Agnico Eagle to jointly explore and develop the combined Douay and Joutel properties, which host millions of ounces of gold resources and a past-producing gold mining complex.
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And there’s plenty of room for growth: Between those two properties and Maple’s 100%-controlled Eagle Mine property, which is an inlier located within the Joutel property, the company’s holdings in the world-class Abitibi Greenstone Belt span an enormous 400-square kilometers.
It’s a land package blessed with fantastic infrastructure, including access to a major Quebec highway, rail, hydro power and a well-trained workforce.
Better still, the drills have been turning to test for high-grade gold resources at depth at both Douay and Joutel, with results about to come in.
Given the Abitibi’s track record of hosting high-grade gold deposits to depths of up to 2,000 meters, the deep drilling has the potential to turbocharge Maple’s share price in the weeks ahead.
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One Of Quebec’s Largest Undeveloped Gold Resources
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Even without the prospect of upside via drilling, Maple Gold Mines looks woefully undervalued for the resource it has already proven up at Douay.
A 2022 resource estimate on Douay pegged its Indicated resources at 511,000 ounces of gold (10.0 million tonnes @ 1.59 g/t gold) and its Inferred resources at 2.53 million ounces (76.7 million tonnes @ 1.02 g/t gold).
And yet, Maple Gold Mines currently trades at only about $23 in enterprise value per ounce of gold it holds.
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Now consider this: Since that estimate hit the market, the JV has completed 16,500 meters of drilling on the project.
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Until the latest drill program at Douay, the average vertical depth of all previous drilling was less than 300 meters.
As you’ll see in a moment, that wide open potential at depth — both at Douay and Joutel — is only just now being systematically tested with technical and funding support from Agnico Eagle, which perfectly illustrates one of the significant advantages of this junior-senior JV partnership.
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District-Scale Potential With A
Major JV Partner Funding The Majority Of The Work
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Unlike many junior gold companies, Maple Gold Mines is extremely well capitalized, thanks to its joint venture with Agnico Eagle.
Agnico Eagle is the largest gold miner in the Abitibi and is known to take a conservative and measured approach to investments.
That’s why it was such a big deal when Maple announced a joint venture agreement in February 2021 combining Maple’s Douay project with Agnico’s past-producing Joutel project.
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The deal came with a commitment from Agnico to spend C$18.25 million over four years on the combined projects. The major also made a big equity investment in Maple, becoming a 12% shareholder in the company.
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With C$9.8 million in cash on its balance sheet (as of December 31, 2022) and C$7.6 million remaining in JV exploration spending from Agnico, Maple has the financial wherewithal to give Douay, Joutel and its 100%-owned Eagle Mine a thorough test with the drill bit.
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Assays Pending Testing High Grade Exploration Potential At Depth
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The JV just finished another round of drilling at Douay and Joutel designed to test both projects at depth.
In the Abitibi, the Canadian Malartic, Casa Berardi and Goldex mines all have resources defined down to 1,500-2,000 meters.
The most recent example of resource growth at depth in the Abitibi came from Agnico’s East Gouldie discovery at Canadian Malartic’s Odyssey Underground target. That discovery spans 6.4 million ounces of gold and extends Canadian Malartic’s mine life until 2039.
Simply put: Maple Gold Mines and Agnico Eagle are swinging for the fences with this latest 13,100 meters of drilling on Douay and Joutel.
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And with those deep holes now complete and awaiting assay, the early indications are promising.
All three drill holes (and four wedge holes) at Joutel encountered massive or semi-massive mineralization at depth.
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And Hole 326X, drilled underneath the Porphyry Zone at Douay, encountered significant alteration, deformation and mineralization from 850 meters to 1,400 meters downhole.
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Urgent Timing — Results On The Way
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With the core that delivered those promising visual results from Douay and Joutel now at the lab awaiting assay, you have a short window to do your due diligence on Maple Gold Mines before those results hit the market.
The history of miners finding high-grade gold at depth in the Abitibi means good grades from this drilling could send Maple Gold Mines shares soaring.
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And as it stands, the company already seems dramatically undervalued relative to the three-million-ounce resource the JV controls at Douay.
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Add in the upside implied by this round of drilling and the drilling still to come on the Douay-Joutel JV and the Eagle Mine property later this year, and you have a company that looks like a must-own in a developing gold bull market.
Maple Gold Mines’ established gold resources and exploration upside make it a veritable dream investment for gold bugs looking to cash in on gold’s next big uptick.
Start doing your homework on Maple Gold Mines today.
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