News release from November 14: “GFG Resources Continues to Expand Gold Mineralization 100 Metres West of North Stock with 0.95 g/t Gold over 22.9 Metres”
Granted, at first look it does not look that impressive. But, in this business CONTEXT is crucial. Having “barn burner” holes means nothing unless you can scale it. Total volume is what actually saves the day, and the latest NR from GFG Resources shows we are heading in the right direction in my humble opinion (with probably much more to come).
Without further ado, here are some key points from my email correspondence with Marc Lepage (VP):
- North Stock continues to get bigger. We continue to hit on step out holes west of the deposit. RSR-019 was 170 metres from historic drilling and 100 metres from our most recent hole. Also, note there was a high grade section in this hole that was over 5 g/t Au. Good sign that there is high grade material in this area.
- Middle Ground (area between North Stock and Antelope Basin) continues to demonstrate broad mineralized zones. If we can continue to prove this area it would have a significant impact on the pit shells (instead of 2 pits it could be one very large pit – approx. 1.1 km in length). Lots of tons is a good thing!!
- Only greenfield results to date have been from Blackjack. They didn’t hit anything but we had to test the targets. Our focus will now be on drilling the large Au-Ag soil anomaly where we had success in the past.
- Greenfield targets that we will test this year is 44, MGT, Pronghorn, South Stock and Blackjack. The two we won’t test this year due to reallocation of metres is West Baldy and STP. Those two targets will be high priority next year. Brian and Tim are very keen to test STP.
- Drilling is nearly complete and are waiting on another 20+ assays. Would expect to have news out again before Christmas.
It’s obvious the GFG team wants the biggest bang for the buck (our buck) and continues to swing for the fences in terms of step out distance in most places. They are not doing the “conservative” type of drilling that might look good but doesn’t accomplish much. They want to prove up something large and as quickly as possible. Not really a surprise given the quality of the team behind it. They are looking to get another take over target under their belts in my opinion.
LOTS of news still to come. Given the market cap, my personal opinion is that GFG certainly is one of the better risk/reward plays out there still. You are betting on an unappreciated asset (district scale) with some of the best people in the business behind the wheels.
[Disclaimer. This should not be considered investment advice. Junior mining exploration companies are inherently risky and can be very volatile at times. I own shares of GFG Resources along with family members and am thus biased. I have not received any compensation from the company for this article]