Tracker - January 12, 2022: Spec Value Rating for Endurance Gold Corp
Endurance Gold Corp has had a Bottom-Fish Spec Value rating since December 31, 2019 based on the Reliance gold project in the Bralorne district of southwestern British Columbia optioned 100% in late 2019. The rating was confirmed on December 31, 2021 based on Reliance as an emerging high grade epizonal orogenic gold discovery. The key missing piece at the start of 2022 was an understanding of the geometry that allows one to go beyond the 500,000-1,000,000 ounce potential evident after two years of exploration that included 4,329 m of core drilling and 51 shallow RC holes, and visualize a 4 million ounce plus Bralorne equivalent outcome.
The property does not have the area footprint of the Bralorne system but the Reliance mineralization is the antimony associated epizonal style found near the top of an orogenic system compared to deeper mesozonal style of Bralone, which leaves open lots of potential at depth. A secondary missing piece is sufficient financing to support a 10,000 m drill program in 2022 starting in April to delineate the near surface zones within the intensely altered 1,500 m long 300 m wide Royal-Treasure Shear corridor and to explore deeper for stacked Ridel style dilation zones.
Final assays for the 2021 program expected in mid February 2022 will show how the 400 m long Eagle and Eagle South zones relate to each other and provide a better understanding of the steeply dipping 200 m long Imperial zone that was the focus of drilling by a previous junior with an eccentric leader who passed away in 2018. Financing became a matter of price and timing after EDG reported on January 12, 2022 the best intersection yet for the Reliance project: 24.8 m of 15.7 g/t gold including 4.1 m of 26.96 g/t gold within the Eagle South zone which represents a 200 m extension of the Eagle zone.
While CEO Robert Boyd is laser-focused on the Reliance play, a strong gold market in 2022 could attract additional funding or a farmout for the Elephant Mountain project in Alaska which has potential for a bulk tonnage intrusion related gold system, and a new price bubble for the magnet rare earths could justify spinning out the heavy earth enriched Bandito project in Yukon as a separate company. EDG has only 140.7 million shares fully diluted with insiders owning about 53% of the 124.3 million issued shares. Not including the 12,978,000 Inventus shares that are worth about $2 million but illiquid, EDG had about $1 million working capital left at the end of September 2021, so doing a major financing to advance Reliance is an important short term milestone. If Endurance Gold can show a plausible model for the gold zone geometry at Reliance and fully fund a 10,000 m drill program for 2022, the Bottom-Fish Spec Value Rating will be converted to Fair or Good and the stock will be turned into a KRO 2022 Favorite.
In terms of background, EDG went public in 2005, founded by Duncan McIvor to pursue a conglomerate gold play in Ontario, and backed by former coal magnate Richard Gilliam and investment banker Ross Arnold. Robert Boyd took charge as CEO in 2010 after McIvor passed away, cleaned up the Pardo conglomerate play by monetizing its interest into an equity stake in another junior, and changed the focus to the Elephant Mountain intrusion related gold system play in Alaska and the Bandito rare earth play in southeastern Yukon. Although half the stock was owned by wealthy Americans, EDG remained a market orphan until September 2019 when Boyd jumped at the chance to option 100% of the Reliance project which he had looked at during the eighties when he was with Homestake. Tracker Feb 20, 2020 provides background on the company and the Reliance project, Tracker Feb 23, 2021 takes a close look at Bandito which has potential to become the world's richest and biggest heavy rare earth enriched deposit, and Tracker Aug 31, 2017 describes the Pardo project which is now owned 100% by Inventus Mining Corp in which EDG still owns 12,978,000 shares. Since the start of 2020 EDG has methodically explored the Reliance project to develop an understanding of the mineralization controls and extend the Royal-Treasure Shear corridor up the mountain in a southeasterly direction.
*JK owns shares in Endurance Gold Corporation