Bob Moriarty writes about Rokmaster Resources Corp. (TSXV:RKR), White Gold Corp. (TSXV:WGO), and a new name
Bob Moriarty | July 8, 2021 | SmallCapPower: I wrote about Rokmaster Resources Corp. (TSXV:RKR) earlier this year and covered most of the salient factors. The company has made a lot of progress since then having completed fourteen diamond drill holes with a total so far of 2,700 meters of drilling and 880 soil samples taken over a 5.7 km strike length. Rokmaster is funded for a 7,000-meter drill program over 7 km of strike length this year. The company anticipates an updated 43-101 in Q4 of 2021 after all the assays have come in. A PEA completed in late 2020 and released in January shows a resource estimate of 2.29 million ounce of gold equivalent ounces.
(The following is an article originally published on 321gold.com on June 25, 2021)
Underground drill holes show mineralization starting as close to 80 meters subsurface going down as far as 1.2 km. The current drilled off strike is only 1.2 km in length but mapping to the south shows mineralization of 1.5 km and 7 km to the northwest for a total of over 10 km. Here is a video of an over flight of the entire strike zone at Revel Ridge in BC, Canada.
Rokmaster’s agreement with the Chinese property vendors calls for a total payment of $44.2 million CAD over five years. It is backend loaded with a payment of $4 million due this year. With the inflation monster rearing its ugly head and recent gains in the price of gold, the Chinese want to renegotiate the deal since they have zero blue sky and RKR has it all. RKR does not intend to redo the deal. That makes the current resource worth about $19 CAD an ounce of gold. Naturally as the ounces go up, the price paid for them will go down.
A back of the envelope calculation shows a potential of up to 10 million ounces of gold at about 5 g/t to 9 g/t gold equivalent ounces. That would get the purchase price for the project under $5 an ounce but you would have to add the cost of exploration and drilling to that. This is a great project getting better daily and not subject to the now common resource nationalization so common in Central and South America.
White Gold Corp. (TSXV:WGO) is one of my favorite Canadian gold companies since it was built on the Yukon claims staked by famed prospector Shawn Ryan. I wrote about them just over a year ago. Read it for more details than I am putting here. I have never understood why WGO isn’t one of the most sought after and overpriced stocks in Canada. Kinross owns 17% and they are a smart company. Agnico Eagle owns 17% and they are just as good. Eric Sprott signed up as a key investor last year.
White Gold controls over 420,000 square ha with 31 different projects. I have always believed that is the problem. Investors simply cannot cope with trying to understand so many different projects. But with Kinross, Agnico Eagle and Eric Sprott as major owners, why should an investor worry about understanding 31 different projects?
Drill results from 2020 were excellent including 17.4 g/t over 3.47 metres of gold in hole 13, 10.96 g/t Au over 3.76 meters in hole 17 and 8.69 g/t Au over 12.3 meters in hole 18. There will be an updated 43-101 later this year but a current resource shows 1.77 million ounces of gold.
There is an ongoing Federal and Yukon Government upgrade program for roads leading to the Coffee gold mine from Dawson City which goes through the heart of White Gold’s property position. The total for the project will be over $468 million dollars. That will make all exploration far cheaper in the future.
White Gold was as high as $1.34 last August when gold and resource stocks peaked. It hit a low of $.55 on June 24th as I write. I have said many times before that if nothing else changes but the price, if a stock drops to a new low you should consider buying more. If it was worth $1.34 ten months ago, it is worth more than $.55 today.
The company does an excellent job of communication and reading their presentation would be valuable for any potential investors. WGO announced their summer 2021 drill program just a week ago and say that the 2,500-meter drill program has commenced.
I have found buying stocks when they are cheap and selling when they are expensive to be a very successful way to make money, beating the heck out of buying high and selling low and hoping to make it up on volume.
The last stock that I am going to chat about today is a new stock to me and to most investors. It is called Tombill Mines Limited (TSXV:TBLL) and named after the two brothers that founded the mine back in 1935. The company is a rarity in the mining business. The company owns 100% of 74 royalty-free claims, 60 of which are owned and or patented including two past producing gold mines. The project is located in the Geraldton Gold district of Ontario, Canada, an established and historic gold district.
The company was only formed in December of 2020 in an amalgamation of a shell with the 74 claims owned by one family for many years. That family continues to own 51% of the shares in Tombill.
The Tombill Main Group is directly west of the Hardrock Gold mine owned and operated by Greenstone Gold Mines, a partnership between Centerra Gold and Premier Gold Mines. The cost of the Hardrock project is projected to be in the $1.25 billion CAD range. It will be an open pit mine with a 14.5-year mine life producing about 4.2 million ounces of gold.
That is significant because the F-Zone structure of high-grade gold runs right through the entire length of the Tombill Main Group. Tombill began a fifteen-hole 16,000-meter diamond drill program in early January. The purpose was to try to nail the F-Zone from the border with the Hardrock deposit east of the Tombill Main Ground right through the entire strike to the west. The Phase 2 drill program will consist of an additional sixty-three holes with about 70,000 meters of drilling.
The family owning the 51% of Tombill have been sitting on the project since the last exploration during the 1950s waiting for the price of gold to go up and Hardrock to show that the gold mineralization goes right into the Tombill ground. Tombill is fully funded for the entire drill program for this year with $5.4 million CAD in working capital as of January 31, 2021.
It’s a really simple story to understand. The Hardrock project has resources of about 6 million ounces of gold in a 43-101 resource on top of a proven and probable resource of 5.5 million ounces of gold. The mineralizing fault runs west through the entire Hardrock project right onto the Tombill Main Group. Hardrock drilled right up to the border between the two projects with excellent gold grade and widths.
The F-Zone plunges from Hardrock right onto the Tombill Main Group at about an 11% grade. The holes will be deep, in many cases up to 1,000 meters apiece. In a press release that came out only one week ago hole TB21-005a showed 6.23 g/t gold over 13.3 meters. And that is similar in grade and width to what added up to 11 million ounces for Hardrock.
The mineralized structure runs about four km through the Tombill property. The holes released a week ago tend to infer about 500,000 ounces of gold. Guessing at the potential it would look like 4 million to perhaps as high as 8 million ounces if the grade and thickness is similar to that of Hardrock. With a current price of $.21 a share that makes a SWAG value for gold of somewhere between $8 and $4 an ounce CAD. That would make Tombill one of the lowest cost of gold companies in one of the best jurisdictions in the world.
All three companies are advertisers on 321gold. I have gone into the open market and bought shares in all three companies and that makes me biased. Do your own due diligence.
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