A Secret Gold Miner Is About To Be Unveiled

A new company is entering the fraternity of global gold producers — and it’s somehow escaped the notice of the markets.

The fact is, with a fully-permitted, fully-built gold mine just months away from renewed production, tiny Firesteel Resources (FTR.V) is punching well above its weight.

Dear Fellow Investor,

How does a tiny little junior mining company manage to grab a major gold resource...

...Complete with a sparkling, barely used mine and mill, substantial gold resource and rich economic projections...

...And transition almost immediately from obscurity to significant gold producer?

Well, it happened for Firesteel Resources (FTR.V), as they snapped up a nearly-new mine and gold resource from under the noses of the global gold industry and are preparing to go into production by the fourth quarter of 2018.

The best part: Hardly anyone knows what’s happened, so the company is still trading at a shockingly low valuation.

But once it begins production, the market won’t be able to ignore the gold it will start spinning out.

David Fells Goliath

C$25 million. That’s how much money Firesteel Resources was somehow able to raise to snap up the fully-permitted, fully-built Laiva gold mine in Finland.

This isn’t a potential project waiting higher gold prices. It’ll spin out rich profits at current gold prices...and Firesteel throw the switch on production in August.

How was this tiny company able to pull off this gargantuan feat?

It was a combination of astute management, great timing and a willingness to take a risk on a project that shuttered in 2014 due to falling gold prices and mismanaged, high operational costs.

All The Pieces Are In Place Today

Firesteel took an initial 10 percent interest in Laiva last year and then increased that interest to 60 percent via a late-2017 forward gold sale agreement that netted C$20.6 million.

The company then took 100% control of the project in February 2018 by issuing additional shares to the prior owner.

Deal done, Firesteel then turned its attention to restarting production at Laiva.

And that won’t be too difficult to do: The mine generated 72,000 ounces of gold between 2011 and 2014, and has an existing, NI 43-101 compliant resource of 150,000 measured and indicated gold ounces and 445,000 inferred gold ounces.

Better still that resource is contained in two open pits that have already produced ore on the property.

Laiva also comes with a fully-built, near-new processing facility with a throughput capacity of 6,000 tonnes per day.

A hot-off-the-presses preliminary economic assessment (“PEA”) forecasts 75,981 ounces of average annual gold production at all-in-sustaining costs of $974/ounce.

Better still, the operation has a pre-tax IRR of 44.6% and an NPV, discounted at 5%, of US$91.5 million.

Firesteel’s market cap is currently around C$18 million. That means, just by approaching the Laiva’s project valuation, the company could multiply in value many times over!

Plus, where the prior owner took a hands-off approach to Laiva by farming out the operation to a contract miner, Firesteel is approaching the mine from a fresh perspective, one that it believes will allow the mine to spin out profits like it never had before.

A Solid Plan For Profitability

From Quarter 4 of operations through to Laiva’s closing in Quarter 9, a ramp-up in mined tonnes resulted in an almost 50 percent drop in run-of-mine gold grade.

The culprit? Poor mining practice that resulted in massive dilution.

Firesteel addressed the issue head on by hiring a best-in-class general manager and mine manager to monitor operations on-site.

The first order of business was de-water the historic pits. This process has been underway.

The next step was to ply both pits with a round of infill drilling. This effort will target the highest grade and widest zones and resource blocks within the current pits.

With a better understanding of the mineralization controls at Laiva, Firesteel will be able to control grade much better during mining.

Plus, as you can see from the graphic below, the company has plans to optimize gold recoveries at every step of the mining and milling process.

Applying lessons learned from the prior operator, Firesteel plans to:

• Improve ore crushing to around 25 millimeters to reduce oversize ore-feed
• Improve the grinding process
• Upgrade leaching and cyanide recovery in the processing plant
• Increase its gold room efficiency

In short, the company will boost profitability with process refinements and selective mining.

Plus, there’s plenty of upside, both at Laiva and in the immediate vicinity.

Finding More Gold...

The opportunities for Firesteel to grow its gold resources are three-fold.

First, it will drill-test wide resource blocks in Laiva’s existing pits that remain open at depth and have been only minimally tested by prior drilling.

Plus, because the highest grades at Laiva are associated with an iron-rich orebody, the company can and will use ground magnetics to map potential extensions to the Laiva pits.

Second, Firesteel will probe the upside at the nearby Musuneva and Kaukainen targets.

Located 2-3 kilometers from Laiva, both targets have the same style of mineralization as Laiva and any open-pittable mineralization outlined on them could easily be trucked to Laiva’s process plant.

Finally, the company controls the Oltava area some 12 kilometers from Laiva. Again, this target has a similar geochemical signature to Laiva. Historic drilling in the area included 5-8 meter intersections grading 2 g/t.

By following up in these three areas, Firesteel has an excellent chance to turbo-charge its resource base.

Countdown To Production

With production at Laiva just a few months away, the time is now to build a position in Firesteel Resources.

Set to begin production just as gold (historically) begins its seasonal upward march, Laiva gives Firesteel Resources something most junior mining companies only dream about: a turnkey production story.

Think of the value proposition investors will be presented with: A company priced like an exploration stock...but with a producing gold mine, one that the company’s PEA suggests is worth many times Firesteel’s current market cap!

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