According to the Fraser Institute the best mining jurisdiction in the Americas is Nevada, Nevada is also the 3rd best mining jurisdiction in the world (behind Finland and Western Australia). Naturally, it makes sense to find under the radar junior miners exploring in the best mining jurisdictions globally. Today, I am introducing a junior miner led by a management that has a knack for making discoveries that others have overlooked. This company's flagship project in Nevada's Walker Lane Trend caught my eye due to its proximity to projects owned by mining billionaire Richard Warke, which prompted me to take a closer look. After assessing the scale of the opportunity and the quality of the management team, I bought shares on the open market and participated in the company's most recent financing.
GGL Resources (TSX-V:GGL) is a Canadian-based junior exploration company focused on exploring under-evaluated mineral assets in mining friendly jurisdictions. GGL is known for its strong diamond project portfolio, but due to the strong gold market and COVID protocols, the company has shifted its focus to two key gold projects Gold Point (gold) and McConnell (gold and copper).
McConnell is a gold and copper prospect with gold rich veins and copper/gold stockwork. The property is located in the Golden Horseshoe mineral belt of central British Columbia, which includes the nearby past-producing Kemess and Lawyers Mines. McConnell boasts historic trench results as high as 10.97% copper over four meters. However, the Gold Point project in Nevada’s Walker Lane Trend is where the company is focused today.
Gold Point Project
Gold Point is a recently optioned camp-scale project hosting past producing gold and silver veins that lie within Nevada’s prolific Walker Lane District-- and it doesn't get any better in mining than the Walker Lane Trend in Nevada. With little exploration since the 1960s, there is camp-scale exploration potential. Additionally, it is a consolidated land package with road access and power to the site. The project has high-grade gold/silver quartz veins, with over 15 veins discovered. The veins at Gold Point are typically 1-2 meters wide and up to 7 meters locally.
GGL’s Gold Point Project is situated in the heart of Nevada’s Walker Lane Trend. Billionaire mining investor Richard Warke’s Titan Minng has the Mineral Ridge Mine to the north and Warke’s Augusta Group (in partnership with gold mining giant Barrick Gold) has the past producing Bullfrog Mine to the south.
Gold Point hosts past producing mines, and historical production records indicate cyanidation recoveries of 92% to 98% for gold and 53% to 82% for silver. Post mining sampling (from 1983) reported 35 samples averaging 0.389 ounces per tonne gold (~12 grams per tonne gold) from underground workings. Intermittent small-scale mining from 1882 to 1962 produced an estimated 74,000 ounces of gold. Records indicate very high historical cutoff grades (~10 grams per tonne gold). Existing underground workings to 275 meters below surface and are dry and mostly open.
Gold Point has excellent potential to define a large mineral resource in the un-stopped portions of existing underground workings, the down dip of high-grade ore shoots, along strike and down dip of main workings, beneath and along strike of secondary vein systems, and along strike beneath the untested overburden covered area, which comprises > 50% of the property. The geology map below shows main workings, secondary vein systems and geophysical anomalies in overburden covered areas:
The next steps for the Gold Point Project is as follows:
- LiDAR survey, which is completed.
- Field validation of existing surface workings and vein exposures, which includes resampling open trenches, pits, and dumps (released January 6th)
- Assess viability to access underground workings (completed).
- Establish access to underground workings, including surveying, mapping, and resampling where safe to do so.
- RC drilling beneath and along strike of known veins.
- Testing potential mineralized structures identified by EM survey.
The initial sampling results from Gold Point are very encouraging and they include:
- 64.6 g/t gold and 110 g/t silver from the ore bin at the Orleans Mine;
- 51.6 g/t gold and 230 g/t silver float sample collected from a structure parallel to the nearby Great Western Vein;
- 30.3 g/t gold and 27.4 g/t gold grab samples taken from previously undocumented veins located 30 m apart; and
- 25.1 g/t gold collected from a waste pile adjacent to a shaft targeting an undocumented vein.
GGL President David Kelsch stated "We are extremely excited about the results from our reconnaissance-scale exploration at the Gold Point property. The results not only confirm the presence of significant mineralization at the known past-producing mines, but also demonstrate excellent potential elsewhere on the property in areas that have seen little historical work. We look forward to the results from our initial underground sampling campaign."
GGL gained reestablished access to the underground workings at the Great Western Mine last month. Field crews have now completed sampling of the 100 through 500 levels of the mine with the collection of 169 chip samples.
Planning and permitting are underway for the next exploration program, I expect this program to commence in the next 6-8 weeks. This program is fully funded and will include reverse-circulation drilling, excavator trenching, rehabilitation work, and sampling at the Orleans Mine, the other main, former producer on the property. The initial drilling will test near to and along strike of known mineralization at the Great Western Mine. Future drill programs will be designed to test targets elsewhere on this under-explored project as additional results become available and comprehensive geological models are developed. There are a number of trenching targets on parallel structures that will be sampled at surface. GGL will also be conducting a GPR survey and some additional auger sampling on the tailings to quantify the volume more accurately.
CEO and Director Doug Eaton has 46 years of industry experience, and has been a director or officer of various junior mining companies for more than 30 years. Eaton is President of Archer, Cathro & Associates Limited (a large geological consulting firm), and President and CEO of Strategic Metals Ltd. (a successful project generator). In 2012, Eaton was a co-recipient of the H.H. Spud Huestis Award, which recognized exploration done on behalf of a gold explorer he founded ATAC Resources Ltd.
President, COO and Director David Kelsch has been a professional geologist for over 30 years. With a core focus on diamond exploration since 1992, Kelsch managed Rio Tinto’s multi-million dollar exploration efforts at Lac de Gras, Northwest Territories, from initiation through to advanced discovery on what was later to be commissioned the Diavik Diamond Mine. He has held senior management positions with several publicly listed companies, including co-founding Indicator Minerals Inc., where he led that exploration team to the discovery of numerous diamondiferous kimberlites in Canada’s north.
Director Matthew Turner has spent the last 20 years managing and participating in a wide variety of exploration projects throughout Northern Canada. These projects include the 1.36 million ounce Klaza Gold deposit located in Yukon Territory and the former producing Snap Lake Diamond Mine in Northwest Territories. Turner is currently President and CEO of Rockhaven Resources Ltd.
GGL checks all the boxes in terms of strong management, tight share structure, and an attractive set of projects that can keep the company busy year round. While there are roughly 45 million shares outstanding, 21% are held by insiders and advisers, while another 39% is held by parent company Strategic Metals (TSX-V:SMD). This leaves a public float of less than 20 million shares.
Gold Point has an ideal location and strong indications that there is a lot of gold left to be discovered, and eventually mined. Gold Point is the type of project that can easily become a company maker and GGL is well positioned to rapidly advance Gold Point in 2021. Between underground sampling results and the commencement of drilling at Gold Point, the next few months should be busy for GGL and shareholders will receive no shortage of news flow from the company.
At the company’s current market cap of roughly US$10 million (GGL has C$2.5 million in cash in treasury as of the end of 2020) GGL investors have the opportunity to get in at a relatively low valuation just before news flow from Gold Point kicks into high gear. In addition, investors are essentially getting McConnell and the diamond projects for free.
Disclosure: The author owns shares of GGL.V at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by GGL Resources Corp.
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