Via M Partners Research:
Mayfair Gold Corp. is a junior exploration and development company focused on its 100% owned Fenn-Gib gold project located 80km East of Timmins, Ontario. Fenn-Gib contains an existing NI 43-101 compliant open pit resource containing an indicated 2.08 Moz grading 0.91 g/t Au with an additional 75 Koz grading 0.62 g/t Au in the inferred category.
Mayfair Gold is working to advance the project and is expecting to complete a resource update and PEA by early 2022 which will include an additional 30,000m of infill and 20,000m of exploration drilling in the resource. The Fenn-Gib project consists of a relatively simplistic high-grade starter pit bringing cash flows forward and a larger expanded pit to be minded afterwards. Located in an infrastructure rich area, surrounded by tier one producers, Mayfair looks to aggressively expand its already sizeable resource and we believe MFG possesses an asset that is of high probability to become a producing mine or potentially an attractive acquisition target.
- Fenn-Gib Getting Attention: After 25 years of this property being neglected as a non-core asset by the previous six owners, Fenn-Gib is finally getting the attention it deserves. With just 73,000m of historical drilling, the project remains under-drilled and the 50,000m Phase 1 drill program that is underway will finally show the true potential of this asset.
- Idyllic Location: The Fenn-Gib project is a part of the extensive and prolific Abitibi Gold Belt just 80km East of Timmins in Canada’s leading gold mining district. The Abitibi Gold Belt hosts many exploration projects as well as, past and current producing operations including Kirkland Lake’s Holt Complex and McEwan Mining’s Fox Complex just 25km and 10km away, respectively (Figure 2). The project has access to all necessary infrastructure, with road and power running across the property, substantial water resources and the town of Matheson just 20km West of the property.
- Resource Growth: MFG is targeting a resource of 3.0 – 3.5 Moz Au by end of the year which we think is well in the range of possibility. There is also potentially an additional 300-500 Koz from the Footwall zone that is not included in Mayfair’s target. The company also has many brownfield targets outside the main resource that they plan to follow up on in the coming months.
- Attractive Takeover Target: Being surrounded by both exploration and producing companies as well as holding an orebody that requires little startup capex, we see MFG as a great acquisition target.
- Compelling Valuation: MFG currently trades at an EV/oz of $26/oz which is on the low end of its peer group of ~$50/oz. Additionally, with a significant resource update coming by year end, this figure should get even lower.
Phase 1 50,000m drilling campaign – Ongoing
Resource update targeting 3.0-3.5 Moz – Q4/21
Preliminary Economic Assessment (PEA) – H1/22