Building a 150,000 ounce per year gold producer typically takes years, sometimes a decade, and requires ample exploration success and many rounds of shareholder financings. In addition to this, there are numerous exploration companies that do not manage to find an economic resource and end up diluting shareholders into oblivion.
Fiore Gold (TSX-V: F) has managed to jump on the fast track to becoming a 150,000 ounce producer by leveraging its market capitalization and the strong reputation of its management team, and board, to land a transformative deal with GRP Minerals.
The new Fiore Gold consists of:
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One producing asset (Pan)
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One asset that is in a late-permitting stage and boasts a resource with a historical resource estimate of 340,000 ounces Au indicated and 400,000 ounces Au inferred (Gold Rock)
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Two exploration assets that can be viewed as wild cards which could deliver value to the portfolio down the road (Golden Eagle in Washington State and the Chilean assets at Pampas El Penon and Cerro Tostado).
Fiore Gold CEO, Tim Warman, sees a clear path to reaching Fiore Gold’s initial goal of 150,000 ounces per year of gold production. This path includes:
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Increased mining rates at Pan (from 10,000 tpd to 14,000 tpd) and leach pad expansion at Pan to be completed by Q1 2018.
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Drilling program at Gold Rock beginning in Q1 2018 to expand existing resource
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EIS record of decision for Gold Rock expected in Q1 2018 which will be a major milestone in the federal permitting process.
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Accretive acquisitions in the 50,000-75,000 ounce/year range.
While the Pan Mine is Fiore Gold’s flagship asset currently, the Gold Rock Project has tremendous upside potential; due to its 50,000 acre contiguous land package on the Battle Mountain-Eureka Trend and an historical resource showing 343,000 ounces indicated at .58 g/t Au and 409,000 ounces inferred grading .41 gt Au. Moreover, the 2012 historical resource estimate at Gold Rock only covered 3 kilometers of a 10 kilometer trend:
Fiore Gold is very excited about its 2018 exploration program at Gold Rock and expects to announce detailed plans before year end.
“We think there is real potential for Gold Rock to host a significant resource.” ~ Tim Warman, CEO Fiore Gold
Fiore Gold’s flagship Pan Mine restarted in March 2017 after GRP Minerals corrected and optimized some of the processes at Pan; including 15,000 meters of new drilling to better understand the ore body and, perhaps most importantly, GRP instituted a rigorous control on the blending strategy and they’ve implemented a much more effective plan to manage grade control. Pan is now on track to produce 35,000-40,000 ounces of gold in 2018. In addition, Fiore has plans for extensive infill and exploration drilling at Pan in 2018:
The new Fiore Gold will have 97.7 million shares issued and outstanding when it begins trading again Friday morning, in addition to C$20 million in its treasury. Considering that Fiore has a fairly clear path to being a 100,000+ ounce producer, an enterprise value of not much more than C$80 million (assuming Fiore shares trade near C$1.10-C$1.20 per share) is far from hefty. Given that many 100,000-150,000 ounce per year gold producers sport C$400+ million market caps, Fiore Gold shareholders stand to benefit from an upward revaluation in Fiore shares as the company progresses its plans at Pan and Gold Rock.
Disclaimer:
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. Fiore Gold is a high-risk venture stock and not suitable for most investors.. Consult Fiore Gold’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated for marketing & promotional services by Fiore Gold so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.