In a gold bull market Nevada is the place to be. No state in the United States produces more gold each year than Nevada. Nevada also offers many advantages including excellent infrastructure and a fast and relatively simple permitting process. While some may think that Nevada has been picked over many times and it’s impossible to make new discoveries there, however, that thinking would be incorrect as evidenced by recent discoveries by Barrick Gold at Fourmile and Corvus Gold at Mother Lode. Fourmile could begin producing 500,000 ounces of gold per year beginning in 2025.
Nevada is the best mining state in the US and there is an estimated 200+ million ounces of gold still lying beneath the surface. Therefore, in the hunt for the next 10-bagger it’s logical to research junior exploration companies that are looking for new gold discoveries in prospective areas of Nevada.
One such company is Golden Lake Exploration (TSX-V:GLM). In November 2019, Golden Lake acquired the Jewel Ridge Project near Eureka, Nevada. Jewel Ridge is located on the south end of Nevada’s prolific Battle Mountain – Eureka trend, strategically along strike and contiguous to the former Barrick Gold (now owned by Waterton Global Resource Management), 1,400,000 gold ounces Archimedes/Ruby Hill mine to the north and Timberline Resources’ advanced-stage Lookout Mountain project to the south.
The property consists of 96 unpatented lode mining claims and 30 patented claims covering approximately 728 hectares (1800 acres). The Jewel Ridge property contains several historic small gold, silver and base metal mines which align along a north-south-trending stratigraphic contact of Lower Paleozoic sedimentary rocks, as well as several other gold-mineralized zones with a variety of structural and lithological controls.
Nevada Carlin-type gold deposits (CTGD) have a combined endowment of more than 250 million ounces, which are concentrated (85%) in only four trends or camps of deposits: Carlin, Cortez (Battle Mountain-Eureka), Getchell and Jerritt Canyon.
Based upon an extensive database of past holes, rock and soil geochemistry, and geophysics Golden Lake believes that Jewel Ridge has excellent potential for the discovery of Carlin Type Gold mineralization. The key to understanding the potential at Jewel Ridge is the fact that the average depth of holes drilled to date on the property has been less than 100 meters and Carlin type gold targets are being drilled much deeper Nevada, with initial holes to up to 200 meters on most projects:
In addition, Carlin gold deposits are being mined and defined to depths of more than 600 meters. Golden Lake recently acquired from a third-party, a geochemical database completed by a major mining company, with a portion of the samples located on the Jewel Ridge property. One newly identified target area, not sampled, nor drilled, designated as the “Radio Tower Target”, indicated values up to 6.03 grams gold per tonne (g/t Au), 119.5 g/t silver (Ag), 0.31 percent (%) copper (Cu), 4.11 % lead (Pb) and 1.58 % zinc (Zn).
Table of Samples From the Radio Tower Area
Golden Lake intends to use geochemical sampling and Carlin pathfinder elements as a vectoring tool. A newly generated ground magnetic geophysical survey will also be used for targeting. Geological modeling of Jewel Ridge is targeting a large tonnage oxide gold deposit with important silver values, over a north-south trend of at least 4 km where mineralization is associated with the Cambrian aged Hamburg-Dunderberg contact and other prospective Paleozoic sedimentary host rocks.
Golden Lake is led by CEO Michael England and Chairman Vic Bradley who both possess extensive experience in the junior mining sector. Vic is a Chartered Professional Accountant with more than 50 years experience in the mining industry. Vic currently serves as a Director and Chairman of the Board with BTU Metals Corp. and has an impressive track record including more than 15 years with Cominco Ltd. and McIntyre Mines Ltd. Vic was also co-founder, President, CEO and then Chairman of Yamana Gold Inc. In addition, he was also Chairman of Osisko Mining Corp from November 2006 up to its sale for $4.1 billion to Agnico Eagle and Yamana in June, 2014. Over the past 30 years Vic has founded, financed and operated several mining and advanced stage exploration and development companies, including the original Yamana Gold Inc., Aura Minerals Inc. and Nevoro Inc. (sold to Starfield Resources).
CEO Mike England has more than 35 years experience in financial markets and has led multiple junior mining companies, raising more than $60 million in the process.
Mr. England offered the following comment about Golden Lake:
“The Jewel Ridge represents a marquee property for Golden Lake, located in the heart of a prolific gold trend in Nevada, with year-round drilling capability and exciting potential for discovery of significant Carlin-type gold deposits, We have assembled a seasoned geological team, along with a truly impressive supportive board of directors and have made excellent progress advancing the project to a maiden Phase 1 drill stage, scheduled to start in July”
Another important member of the Golden Lake team is technical advisor Richard Reid. Mr. Reid is a senior geologist with over 39 years in the mining business, working for major mining companies, with a focus throughout Nevada. His roles with Newmont Mining Corporation, now Newmont Corp., the largest producer of gold in the world, included Nevada District Exploration Manager, Exploration Business Development Manager and Chief Geologist for North America. Mr. Reid has been involved with acquisitions of significant mining properties throughout his career including Newmont’s acquisition of Long Canyon from Fronteer Gold Inc., and the acquisition of the Buffalo Valley deposit, which was subsequently sold to SSR Mining. Richard has extensive experience with Carlin type gold deposits which will be directly applicable to the Company’s exploration focus on the Jewel Ridge gold property. He also was involved with epithermal hosted gold deposits on the Carlin and Battle Mountain-Eureka Trend, including significant discoveries at the Midas Mine and Florida Canyon Mine.
Last week, Golden Lake issued an NR on sampling results from a new target at Jewel Ridge called the A&E Target. Highlights include values up to 29.49 g/t Au, 333.0 g/t Ag, 1.35 % Cu, 4.00% Pb and 9.53 % Zn. These sampling results are encouraging and Golden Lake will begin an RC drill program at Jewel Ridge in July and the A&E Target sits on private patented claims. This means that Golden Lake can drill there without needing to apply for permits.
Golden Lake is a relatively new company and the stock has an extremely tight float. I anticipate GLM shares will break-out above resistance near $.20 as drilling begins in the next couple of weeks. I own shares and I am biased.
Golden Lake Exploration Share Structure:
Market cap (using C$.18 share price): C$5 million
Fully-diluted market cap (using C$.18 share price): C$7.3 million
Shares outstanding: 27,799,668
Warrants: 10,425,333
Options: 2,375,000
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. Golden Lake Exploration inc. is a high-risk venture stock and not suitable for most investors. Consult Golden Lake Exploration Inc.’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated for marketing & promotional services by Golden Lake Exploration Inc. 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.