Yesterday, Red Cloud Klondike Strike Inc. (RCKS) hosted the third installment of our Drilling Deeper lunch series, this time featuring companies with
funded exploration programs. The presenting companies were Aston Bay Holdings Ltd. (TSXV:BAY), Eastmain Resources Inc (TSX:ER), IDM Mining Ltd (TSXV:IDM)
and Victoria Gold Corp. (TSXV:VIT). In our 3 THEMES & 10 COMPANIES FOR A NEW BULL MARKET IN PRECIOUS METALS post earlier this week, we highlighted that we believe good news is once good for stocks (catalysts) and we believe all four presenters have the potential
to increase shareholder value with the drill bit this year.
Aston Bay Holdings Ltd. (TSXV:BAY)
Aston Bay Holdings has recently signed a definitive option agreement with BHP Billiton Ltd (BHP), under which BHP can earn a 75% interest in the Storm
Copper project, by spending C$40 million over nine years, with a minimum C$2.5 million being spent in the first two years. This option agreement funds
the next leg of exploration for Storm Copper project, where the focus is on discovering a “BHP sized” sediment-hosted copper deposit. Historic drilling,
along with a recent reinterpretation of geophysics suggests this type of target exists. The detailed 2016 exploration plan is still being finalized;
Aston Bay and BHP have already mobilized equipment and personnel to the site and we anticipate first drill results later this year.
Eastmain Resources Inc. (TSX:ER)
Following recent board and management changes, the company plans on expanding and upgrading the existing resource at its Eau Claire project with an aggressive
drill program in 2016. Eastmain has also committed to significant work programs at its Eastmain and Eleonore South JV projects. At Eau Claire, the
company plans to drill 50,000m this year, with a focus on upgrading existing inferred resources, drilling gaps in the existing resource model and nearby
open pit targets that have yet to be drilled. With multiple active exploration programs, we expect drill results from Eastmain through the balance
of 2016, leading to an updated resource at Eau Claire in Q1 2017.
IDM Mining Ltd. (TSXV:IDM)
Following a C$10.8 million financing earlier this year, IDM is funded to not only advance its Red Mountain project to a construction decision in early
2017 but also add value with the drill bit. The majority of IDM’s drill program is focused on the existing resource area with infill drilling focused
on upgrading inferred ounces for the upcoming feasibility study (Q1 2017), and adding near infrastructure ounces. In the near-term, the company is
expecting to release an updated PEA in early July, which should demonstrate a larger production profile and improved project economics.
Victoria Gold Corp. (TSXV:VIT)
Victoria Gold, with approximately C$37 million in cash, is well funded to advance its fully permitted, feasibility stage Eagle Gold project in the Yukon.
The company has been actively drilling the Olive-Shamrock zone and plans to incorporate the Olive zone in its updated feasibility study later this
year. The addition of this higher grade zone should benefit the projects mid-mine life production profile along with overall project economics. We
expect additional drill results from Olive and Shamrock for the balance of 2016 and expect the updated feasibility study to be an important catalyst
for Victoria when released later this year.
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