Genesis Metals: Undervalued Quebec Gold Explorer With Aggressive Phase Two Drill Program Underway
The Discovery Group is an alliance of public companies focused on the advancement of mineral exploration and mining projects around the world. The Discovery Group has a proven track record of generating shareholder value through responsible, sustainable, and innovative development.
Founded in 2005 by John Robins and Jim Paterson, two respected entrepreneurs in the Canadian mining industry, Discovery Group has generated over $500 million in direct and indirect expenditures resulting in over a billion dollars in M&A activity. Notable recent successes being the sale of Northern Empire Resources Corp. to Coeur Mining Inc. and Kaminak Gold Corp. to Goldcorp Inc.
Some of the companies currently in the Discovery Group’s stable include Great Bear Resources (TSX-V:GBR), Kodiak Copper (TSX-V:KDK), and Fireweed Zinc (TSX-V:FWZ). A lesser known Discovery Group company is Quebec focused gold explorer Genesis Metals (TSX-V:GIS). The company’s flagship project is the 295 square kilometer Chevrier Gold Project located near Chibougamau, Quebec. Genesis Metals holds a 100% interest in Chevrier. The project has excellent access (paved highways, forestry roads, power line, rail line, airport, mining friendly area) and close to infrastructure.
The Chibougamou Gold District boasts over 6.7 million ounces of historical gold production. The Chevrier Gold Property covers 15 kilometers of the Fancamp Deformation zone, which is an emerging mineralized belt undergoing intensive exploration by multiple companies including several major industry players. Historic work at Chevrier resulted in thick intersections of gold as well as high grade intervals both at surface and at depth. The mineralization extends over a currently defined total strike length of more than 1.2 kilometers and shows vertical continuity to a depth of 525 meters. It is still open at depth.
As of February 2019, Genesis has completed a new resource estimate for the 100% owned Chevrier gold project located near Chibougamau, Quebec. This resource estimate is for both the Main Zone and East Zone on the Chevrier project. The East Zone is located approximately 10 km northeast of the Main Zone. Both zones are located within the Fancamp Deformation Corridor, a major structural break that appears to control the location of gold mineralization.
Totals for each category can be found below:
395,000 ounces of gold averaging 1.45 g/t Au in the Indicated Resource category
297,000 ounces of gold averaging 1.33 g/t Au in the Inferred Resource category
Work Completed Since Project Acquired in Q2 2016
Inventory of more than 70,000 meters of drill core
Entire core from historic holes were never sampled – only selective sampling by previous companies
Resampling and re-assaying of selected mineralized intervals
Resampling of 4 trenches
Compilation of all data for 295 square km property – new target generation
3D modelling of Main, South and East Zones completed
50+ km of IP surveying completed
10,000 meters of drilling completed in 2017
Updated 43-101 Mineral Resource Estimate February 2019
Genesis is in the midst of a 8,000+ meter drill program at Chevrier with the aims of achieving multiple objectives:
Continued definition and volume expansion of higher-grade domains which form plunging “shoots” within the Chevrier Main deposit. Drilling will build on the success of the 2,502 metre Phase I 2020 drilling program that achieved multiple high-grade gold intercepts in the southwestern sector of the Chevrier Main deposit (June 2 and July 7, 2020 News Releases)
Step-out holes on high-grade intercepts from historical drilling outside of the Chevrier Main deposit
Test of down plunge projection of the southwest Chevrier Main high-grade shoot to depth below current pit shell with one or more deeper holes
Initial test of the previously undrilled area 800 metres northeast (up-ice) of till anomaly #3 where a cluster of prospecting grab samples from 2017 with assays including 17.8 g/t gold, 10.8 g/t gold, 3.5 g/t gold and 1.94 g/t gold were reported in the Company’s June 24, 2020 News Release (map). This area lies along the projection of the Fancamp Deformation Zone envelope and has been the focus of follow-up surface mapping and sampling this summer
Once all results from the summer surface exploration program are received and interpreted, additional drilling may target an area along the eastern strike projection of the East Zone deposit.
Genesis Metals now owns 100% of the October Gold Project. Covering 203 square kilometers, the property is located in the Southern Swayze greenstone belt in Benton Township, Ontario, which is considered to be the western extension of the Cadillac Larder Lake Break, where over 62 million ounces of gold has been produced. Genesis’ past surface exploration program identified two strong gold anomalies at October Gold, one with a footprint of 1.5km by 3km, the other with a footprint of 2.0km by 2.0km. Both anomalies have a high degree of confidence.
Not only does Genesis have an existing resource at Chevrier with considerable potential for resource expansion, but it’s led by an experienced and successful management team. CEO, president and director David Terry has more than 25 years of international experience in the mineral resources sector. Dr. Terry has played key roles in the successful discovery/acquisition, exploration and development of several North and South American precious and base metal deposits. He also has expertise in advanced project evaluation, M&A, corporate finance, and design and execution of effective exploration programs. Currently serving as a director of Great Bear Resources Ltd., Golden Arrow Resources Corporation, Aftermath Silver Ltd., and Blue Sky Uranium Corp, he has also worked with a number of senior mining companies including Boliden Limited, Westmin Resources Limited, Hemlo Gold Mines Inc., Cominco Limited and Gold Fields Mining Corporation.
With over 40 years of technical and executive experience with exploration and development stage mining companies, Chairman and director Adrian Fleming is a professional geologist who was a founding Director of Northern Empire Resources that was acquired by Coeur Mining for $117 million for the Sterling Gold project in October 2018. He was also the co-founder and President of Underworld Resources from 2006-2010. Mr. Fleming led the team that discovered and defined the maiden resource of the million-ounce White Gold deposit, located in the White Gold district, Yukon (which was then acquired by Kinross in 2010 for $138M). Mr. Fleming was also involved with gold discoveries and/or developments at Porgera in PNG, Big Bell in Western Australia, Gross Rosebel in Suriname and Hope Bay in Nunavut.
Strategic advisor Rob Carpenter is a Professional Geoscientist with over 25 years of technical and executive experience for junior and major mining companies. He was co-founder and President and CEO of Kaminak Gold Corporation from 2005 to 2013 and led the company through the acquisition, discovery and maiden resource of the multi-million ounce Coffee Gold Project, located in the White Gold District, Yukon. The project was subsequently acquired by Goldcorp Inc in 2016.
Mr. Carpenter has received awards from the Association for Mineral Exploration of British Columbia for excellence in mineral exploration (2013) and social and environmental stewardship (2008). He completed his Ph.D. at the University of Western Ontario in 2004 where he worked on the newly discovered Meliadine Lake gold deposits that are currently owned by Agnico Eagle. Rob is also a Director of White Gold Corp, listed on the TSX Venture Exchange.
At its current share price of C$.22, Genesis has a market cap of less than C$12 million. Considering the pedigree of Genesis management, the existing resource at Chevrier and the tremendous potential for resource expansion, and the excellent jurisdiction (Quebec) of the company’s project portfolio I believe that GIS.V shares offer a very attractive call option on the gold bull market and exploration success as Genesis steps out from the Main Deposit at Chevrier.
GIS shares are oversold and at support
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Genesis Metals (TSX-V:GIS) is a high-risk venture stock and not suitable for most investors. Consult Genesis Metal’s SEDAR profile for important risk disclosures.
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