Prosper Gold (PGX.V): Micro Cap Junior Who Just Discovered a Remarkable Gold in Till Anomaly in Red Lake
This will just be a quick look at a Prosper Gold (PGX.V) which just announced some very interesting news. As such I have initiated a position and plan to speak to management as soon as possible. I might to a longer post in the future.
Prosper Gold in Short:
- Website: LINK
- Ticker: PGX.V
- Shares outstanding: 13.7 M (Very tight!)
- Basic Market Cap @ $0.84/share: C$11.5 M (US$9 M)
- Cash: C$2.5 M
- Enterprise Value @ $0.84/share: C$9 M (US$7 M)
- Flagship Project: Golden Sidewalk Project,gold
- District-scale land package totaling 16,350 ha in Red Lake, Ontario.
- Historical high-grade gold found at surface (up to 3,743 g/t Au)
- Great Bear Resources ($922 M in MCAP) recently staked ground immediately to the north of Prosper Gold’s project
- Secondary project: Star Project, copper/gold
- 51% Prosper Gold / 49% OTSO Gold Corp
- 6,829 ha in NW British Columbia, Canada
- 5 discrete porphyry centers
- Mineralized system confirmed from surface to 664 m depth
- 2013/2014 Prosper Gold diamond drilling highlights:
- DDH S024: 312.2 m @ 0.37% Cu, 0.24 g/t Au (from surface)
- DDH S045: 64.0 m @ 1.12% Cu, 0.59 g/t Au (from surface)
- DDH S049: 324.0 m @ 0.44% Cu, 0.22 g/t Au (from surface)
- Insider Ownership: 21.1% (Management 14.1%)
The Big News:
- Infill till sampling has outlined a 3,300 x 500 metre pristine gold grain-in-till anomaly which remains open for expansion
- Till samples containing up to 882 pristine gold grains
- Large-scale (>5 kilometre) conceptualized gold target, referred to as the “Golden Corridor”, now supported by pristine gold grain-in-till results
The most insane thing was the 110.7 g/t Au in Till sample. I have never seen a till sample with anywhere near those grades…
My Case in Short:
- Tier #1 jurisdiction
- District scale land package
- Obscene gold in till anomaly (One bloody TILL SAMPLE graded 110,700 ppb which is eqv to 111 g/t Au!)
- Secondary gold/copper asset with pretty good historic results
- A team that has done it before coupled with geos with experience from Kirkland Lake Gold, Sabina Gold & Silver and Imperial Metals etc.
- Great Bear Resources who has had a lot of exploration success in the area just staked ground immediately to the north of the Golden Sidewalk Project
- Tight share structure
- The kicker: C$7.5 M (US$5.8 M) in EV for all of the above!
Especially with these brand new results from Golden Sidewalk I simply think this sleeper is way, way too cheap. Furthermore I think their copper/gold project is probably worth quite a bit more than the Enterprise Value alone as well (especially in this copper market).
The bulk of the team seems to be the people who led Richfield Ventures Corp to a C$550 M take over by New Gold coupled with some geologists who have been/are involved with Kirkland Lake Gold, Sabina Gold & Silver and Imperial Metals etc. In other words they have done it before and have a history of success:
Prosper Gold got a very large land package and I would again note the recent staking to the north by Great Bear Resources (C922 M MCAP):
Northern parts of the project and the new, obscene gold in till anomaly called the “Golden Corridor”:
Note: This is not investment advice. I have bought shares of Prosper Gold in the open market. Consider me biased and do your own due diligence. I can buy and sell shares at any time.
Erik Wetterling aka “The Hedgeless Horseman”
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