The Beta Hunt gold mine benefits from an incredible amount of underground infrastructure,
historical drilling, site services, etc. However, much of this was designed around the high-grade flat-lying nickel orebody that was the focus of operations
during the early part of the mines life. With the infrastructure essentially on top of the gold orebody, (Figure 1) this presents a minor development
challenge and more importantly does not provide the best angle to drill from. This explains the current small resource and the companies focus on level
development versus stoping.
Significant upside, once the operation stabilizes.
The company has identified three separate gold trends that appear to strike all
4km of the existing infrastructure and are open at depth (Figure 2). For the reasons discussed above, expanding these zones has not been a focus
of the company as they work to ramp up operations. Based on our review of the existing data, it appears that there is sufficient resource expansion
potential to support the company’s medium-term plans to become a plus 100k ounce per year producer and may have upside beyond that scale. We note
the company is unlikely to see this potential upside reflected in its share prices until operations have stabilized. To that end, the main near-term
catalysts are likely quarterly operating and financial results, where investors will be able to measure the company’s ramp-up of the Beta Hunt
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
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