1911 Gold , potential undervalued speculation
1911 Gold has a unique story in the junior mining space, and with the proper newsflow a likely re-rate is coming.
Before I get into 1911 Gold, I want to give an update on silver, I have been discussing the price action for a few weeks now. Unfortunately Silver lost the very important $30 level this week, this isn’t necessarily the end of the bull run as there is lots of reasons to be bullish technically. Although I do think it’s a time to be cautious with positions and to watch the next couple weeks very carefully. Silver has a tendency to shake investors out with it’s extreme volatility, even when it doesn’t seem warranted like yesterday. $30 continues to be an important psychological level, I would like to see the metal get past it again on a weekly close.
Okay lets get into 1911 Gold, this is a very unique story in the junior mining space, they own the True North Mining Complex in Manitoba, Canada, this has a high grade underground resource of over 1 million ounces at 6 g/t, there is a functional mill in place with the potential to be expanded to 2200 TPD.
There really isn’t many comparables to the company within the junior mining space, it is currently valued at an $11 million market cap, which is pretty outrageous for the potential they have here. There is explorers with no proven resource just getting started that have higher market caps. They think the mill has a replacement value of almost $300 million dollars alone.
The share price has basically gone nowhere for a couple years, the company was focused on it’s land package and trying to find additional deposits to feed the mill, although they have some prospective targets, they weren’t able to find anything significant through drilling.
What has changed recently is that the company has raised nearly $4 million dollars and has shifted focus to expanding the resource at the True North Complex and is seriously looking at getting this back into production, they have brought on Gary Connor recently who has lots of experience and is able to tell the story to the market appropriately. Eric Sprott took ownership of 12% of the shares in the recent financing as well.
I think the company needs to show the market they are serious and needs to prove they are doing meaningful work on the project while communicating this effectively. This has been an issue with the company in the past, I believe with Gary on board this should be alot better.
The company wants to get the resource to over 2 million ounces and to update the mine plan and release some new economic studies to the market. We could see this re-rate over the next year or two if they can deliver.
If you are interested in the company I would highly recommend watching the recent interview with Gary Connor and the CEO. Here is the link.
Disclaimer
The views and opinions expressed on this website are for educational and informational purposes only, and should not be considered as investment advice. The author may hold positions in stocks mentioned on this website. The author of this website is not a licensed stockbroker or financial advisor. Nothing contained herein should be construed as a recommendation to buy, hold or sell any securities or financial products. Always seek the advice of a financial advisor and do your own independent research prior to making any trade or investment decisions.
We do not guarantee the accuracy or completeness of any information on this website. Such information is provided “as is” without warranty or condition of any kind, either express or implied. Past performance may not be indicative of future results. This website could include inaccuracies or typographical errors.
We are not liable or responsible for any damages incurred whatsoever from actions taken from information provided on this website, including financial losses. Since all readers who access any information on this website are doing so voluntarily, and of their own accord, any outcome of such access is understood to be their sole responsibility. In no event shall we be liable to any person for any decision made or action taken in reliance upon the information provided herein.