The following guest post is by Lukas Kane of equity.guru. As of July 16th, Falcon Gold shares are trading at C$0.10, down from a high of C$0.25 in early August, 2020. Falcon hit its all-time high within days of the gold price hitting its all-time (nominal) high of US$2,073.oz. Note: Epstein Research [ER] owns shares & warrants in Falcon, and the Company is a current advertising client of [ER].
Since last summer, gold is down 14.5%, but Falcon is down 60%! Something’s not right here… Nothing bad has happened at the Company, in fact good things are happening. Earlier this week mgmt. announced the acquisition of 24,000+ hectares in central Newfoundland. Please continue reading to see if you agree that Falcon Gold is oversold at C$0.10. Falcon Gold is an Equity.Guru marketing client.
On July 13, 2021 Falcon Gold (FG.V) announced that it has acquired a significant land position within the Hope Brook Area, Newfoundland.
Falcon Gold has de-risked itself significantly by acquiring and developing multiple projects in multiple jurisdictions.
That is a double-edged sword – as the messaging for the company can become fractured.
“The company’s flagship asset is its Central Canada Gold Project (CCGP), located roughly 160 km west of Thunder Bay Ontario (in proximity to Aginco Eagle’s Hammond Reef deposit),” confirms Equity Guru’s Greg Nolan.
Central Canada Gold Mine History:
- 1901 to 1907 – Shaft constructed to a depth of 12m and 27 oz of gold from 18 tons using a stamp mill.
- 1930 to 1934 – Central Canada Mines Ltd. installed a 75 ton per day gold mill. Development work included 1,829 m of drilling and a vertical shaft to a depth of 45 m with about 42 m of crosscuts and drifts on the 100-foot level. In December, 1934 the mine had reportedly outlined approximately 230,000 ounces of gold with an average grade of 9.9 g/t Au.
- 1935 – With the on-going financial crisis of the Great Depression, the Central Canada Mines was unable to fund operations and the mine ceased operations.
- 1965 – Anjamin Mines completed diamond drilling and in hole S2 returned a 2 ft section of 37.0 g/t Au and hole S3 assayed 44.0 g/t Au across 7 ft.
- 1985 – Interquest Resources Corp. drilled 13 diamond holes totaling 1,840m in which a 3.8 ft intersection showed 30.0 g/t Au.
- 2010 to 2012 – TerraX Minerals Inc. conducted programs that included line cutting, geological surveys and 363 m of drilling.
Falcon holds multiple additional projects. The Camping Lake Gold property and the Springpole West property in the world-renowned Red Lake mining camp; a 49% interest in the Burton Gold property near Sudbury Ontario; and in BC, the Spitfire-Sunny Boy gold claims and the Gaspard property – and now the Hope Brook project in Newfoundland, Canada.
In Newfoundland, Falcon has staked a total of 996 claims (24,900 hectares) which are strategically located and contiguous to First Mining Gold, Sokoman Minerals–Benton Resources JV & Marvel Discovery.
Newfoundland & Labrador comprise a single Canadian province.
“When considering both policy factors & mineral potential, the province [Newfoundland & Labrador] is the 8th most attractive jurisdiction in the world for mining investment (out of 77 jurisdictions),” reports The Fraser Institute on April 8, 2021.
“The province went from 50th in 2019 (when considering only pure mineral potential) to 11th in 2020,” continued The Fraser Institute, “Much of the province’s current mining activity is in iron ore, nickel & copper. However, gold discoveries in the second half of the year might explain why investors now view the province as a premier mining investment destination.”
“Exploration activity within Newfoundland continues to accelerate with no sign of slowing down,” confirms Falcon CEO Karim Rayani, “We are thrilled to position Falcon Gold in this very strategic land position.”
“The Hope Brook mine was and is a very significant gold deposit intimately associated with structure,” continued Rayani, “Falcon’s land is situated in a very active structural corridor giving us a tremendous opportunity for success.”
This new FG acquisition is directly tied onto First Mining; Sokoman & Benton’s JV and now Marvel Discovery.
“Within this immediate area, the most significant deposit is the Hope Brook gold mine which was in production from 1987 to 1997 producing 752,163 ounces of gold,” states FG, “The Hope Brook deposit is now owned by Coastal Gold Corp who have outlined an additional 6.33 million tonnes at an average grade of 4.68 g/t gold for 954,000 ounces of gold in the Indicated & Inferred categories.”
- Potential for high-grade underground production scenario
- High-grade underground resource of:
– Indicated Resource: 5.5 Mt at 4.77 g/t Au containing 844,000 ounces of gold
– Inferred Resource: 0.84 Mt at 4.11 g/t Au containing 110,000 ounces of gold
- Significant infrastructure which includes a ramp to 350 m below surface with vent raise, power, access by sea and air, and a strong local labour force
- Strong support from community and government of Newfoundland
- Previous operator of the project produced 752,163 ounces of gold between 1987 – 1997.
- Drill targets with potential to significantly increase resources have already been outlined
The Hope Brook project is not Falcon’s only recent acquisition.
On March 9, 2021 Falcon Gold (FG.V) announced that the TSX-V had approved the purchase of the Gaspard Gold Claims located in central BC. The Gaspard Property comprises three mineral claims, covering 3,955 hectares in the Clinton Mining District of central British Columbia.
That’s about 10X bigger than Stanley park. The Property has year-round, all-season road access with a good network of active logging roads. The City of Williams Lake, located 60 km northeast of the Property, is a regional supply centre for mining, logging & ranching.
Falcon has agreed to complete $34,000 in exploration expenditures on the property during the 2021 field season.
The vendor will retain a 2% NSR on the Gaspard Gold Property. The closest gold deposit to the Property is ~26 km to the south and is the Blackdome Gold Mine Project.
The Blackdome reportedly has the following resources;
144,500 Metric tonnes Indicated, grading 11.29 g/t gold & 50 g/t silver, plus 90,600 Mt Inferred, grading 8.79 g/t gold & 18.6 g/t silver (as currently reported by Tempus Resources Ltd.)
“Insider Selling” is considered a negative leading share-price indicator. “The fear is that insiders know better than average investors what’s really going on at a company,” reports CNN Business.
Conversely, “Insider Buying” is considered a bullish leading share-price indicator. A visit to “Canadian Insider” reveals that, Falcon Gold CEO Karim Rayani has been loading up on his own company’s shares at the same prices you and I pay.
Over the last 12-months, gold has fallen out of favour, dropping from USD $2,000 to USD $1,800. Despite this painful correction, the forces pushing gold prices higher are getting stronger.
“The COVID pandemic has added $24 trillion to the global debt mountain over the last year a new study has shown, leaving it at a record $281 trillion and the worldwide debt-to-GDP ratio at over 355%.” reported Reuters.
Most of that global debt is based on fiat currency (paper money), and it is very easy to manipulate supply. No act of Congress can magically make a tonne of gold appear on the lawn of the White House.
In 2021 – more than ever – gold is a contrarian bet. Maybe the world can live off credit cards forever with no consequences. If that turns out not to be true, history suggests that aggressive little explorers like Falcon Gold will benefit from a stampede into precious metals. Today, gold is up $13 to US$1,823/oz.
FG.V is trading around C$0.10 with a market cap of $10M. The Hope Brook property is a valuable addition to FG’s growing gold portfolio.
– Lukas Kane
Full Disclosure: Falcon Gold is an Equity Guru marketing client.