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| Some investment stories check all the boxes. |
| That’s certainly true of Emperor Metals (AUOZ.CN; EMAUF.OTC) — a company that combines established and growing gold resources...significant exploration upside...and the possibility of near-term cash flow with a stellar management team.
This is a company that controls not one, but two gold projects along Quebec’s portion of the legendary Abitibi Greenstone Belt.
The Abitibi is one of the world’s great mining districts, having produced more than 200 million ounces of gold since the turn of the 20th century. That rich history has resulted in tremendous mining infrastructure that can dramatically reduce the costs of new mines. |
| As you’re about to see, both of Emperor’s gold projects have large, mineable gold resources that could feed one of the many mills in their immediate vicinity. |
| That enviable location gives Emperor a fast-track path to production, one that could allow the company to forgo the significant capital expense of building on-site processing facilities. |
| Perhaps the most exciting part for investors today: The company’s significant gold resources and path to profitability comes at a still-tiny market cap just under C$30 million. |
| But a story this compelling isn’t likely to stay this cheap for long — especially with gold in a bull market — making this the time to take a closer look at Emperor Metals. |
| Doubling A Rich Gold Resource |
| Emperor’s Duquesne West project near Rouyn-Noranda, Quebec provides the company with its flagship asset. |
| If there was any question that management is laser-focused on growing the resource at Duquesne West, it was answered last week with a headline-making maiden resource estimate for the project. |
| That estimate combined data from two years of prior drilling with a re-evaluation of historic core, and it succeeded in outlining a near-surface, open-pittable gold deposit that complements the underground deposit.
In doing so, it doubled the 727,000-ounce historical resource to 1.46 million inferred ounces, with 44% of that NI 43-101 compliant resource amenable to open-pit mining and 56% amenable to underground mining methods. |
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Released last week, Emperor Metals’ resource estimate for the deposit at Duquesne West more than doubled the resource to 1.46 million ounces of gold. |
| Emperor spent US$5 million to grow Duquesne West’s gold resource by 733,000 ounces, which translates into a gold discovery cost of just US$7 per ounce! |
| Shooting For Two Million Ounces |
| Better still, there’s more to come, as the new resource at Duquesne West is still wide open at depth and to the east.
The company is planning a 8,000-10,000-meter drill program to expand the resource that will begin in August. |
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Duquesne West’s gold resource could stands to grow substantially larger, as expansion potential abounds at depth and to the east. |
| Given the extensive AI-driven data modelling that its geologists have conducted on the project’s gold mineralization, Emperor is confident that this aggressive drilling program will outline significant additional resources.
The short-term goal: To grow the current resource to at least two million ounces. |
| A Second Quebec Gold Project
Offers Near-Term Cash Flow |
| Adding to the company’s value proposition is Lac Pelletier, another Rouyn-Noranda-based project in the heart of the Abitibi. |
| Lac Pelletier has a still-small, historical resource (227,000 ounces of 3.9 g/t gold), and with valuable production permits that are valid until 2030.
That historical resource was defined by C$70 million of past expenditures that resulted in 105,000 meters of drilling and 3.3 kilometers of underground development. |
| In Lac Pelletier, Emperor sees the opportunity to prove that historical resource up to NI 43-101 compliance and to put it into production by 2027, sending the mine’s ore to one of the Abitibi’s many underutilized mills.
Doing so would allow Emperor to generate cash flow...without expensive capital expenses...that it can use to self-fund continued exploration growth and development at Duquesne West. |
| In the Heart Of One Of the
World’s Great Gold Districts |
| Remember, these aren’t projects in some far-flung part of the world.
As the map below makes clear, the Abitibi Greenstone Belt that spans Quebec and Ontario is home to a robust mining ecosystem. |
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Duquesne West and Lac Pelletier are both surrounded by active gold mines and advanced gold deposits, giving them unparalleled infrastructure access. |
| In addition to those nearby mills, Emperor’s projects also benefit from highway, power and rail access and proximity to one of the most experienced labor forces on the planet. |
| This ideal location gives Emperor the option of putting its gold resources into production much more rapidly than is typical for a gold junior. |
| It also makes the company a potential takeout target at any time, especially as the drills continue to expand the deposit at Duquesne West. |
| A Team With A Track Record Of Success |
| As investors, great projects in a great location are all well and good, but without a management team who has led other mining companies successfully, a company is missing a critical trust factor. |
| The group of managers and advisors leading Emperor Metals has over 200 years of experience in the sector and have collectively generated 12 successful exits for the public mining companies they have served. |
| Backed by strategic investor and industry legend Rob McEwen and headed by President and CEO John Florek (recently appointed to the board of McEwen Inc. (MUX.TO), Emperor Metals boasts considerable executive firepower.
That certainly includes Chairman of the Board John Williamson, whose track record of building, expanding and successfully monetizing resource assets speaks for itself. His serial success in the sector is a testament to the strength and vision behind this team. |
| Time To Act |
| All by itself, the 1.46-million-ounce resource Emperor has just outlined at Duquesne West more than justifies a re-rating for the company. |
| Add in the potential for upcoming drilling to grow that resource to two million ounces or more — and for Lac Pelletier to monetize sky-high gold prices — and you have a company that could well multiply in value during this gold bull market. |
| Bargains of the kind Emperor Metals is offering investors typically have a short fuse. Best to start doing your due diligence on the company now. |
| CLICK HERE
To Learn More about Emperor Metals Inc. |
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