Micro Cap Shopping List For 2021: Part #1

What follows is a list of some names I have bought shares in during the last few weeks (tax loss selling season). Note that some of the names have gone up in price a bit already and that the stated Enterprise Values below might not be completely accurate right now. Do your own due diligence…

Goliath Resources (GOT.V) ~US7.2 M in EV

Initial, conceptual 1.7-2.0 Moz AuEQ high-grade target in BC, Canada

Comments: One of the best early stage targets I am currently aware of for a junior with this kind of valuation. I expect the stock to do very well in 2021 and I think it should be a relatively easy >100% return as the field season draws closer. It is also worth noting that the main structure has significant silver values on top of gold and at today’s silver/gold ratio the indicative AuEQ grade is higher than stated.

• Margin of Safety: No
• Upside potential: Very High
• Play type: Alpha
• Skin in The Game: Insiders own 15%
• Status: Waiting to drill

Rokmaster Resources (RKR.V) ~US$20 M in EV

2 Moz of AuEQ resources in Canada and currently drilling.

Comments: Assuming the company is able to make the payments for the Revel Ridge Project option then the margin of safety is incredibly high. If the precious metal market remains strong and the company keeps increasing the resource then it shouldn’t be a problem… Especially since the PEA which was released a little over a week ago showed an After-Tax NPV of C$423 M, IRR of 29.5% and a 2.6 year payback at US$1,561/oz gold. It’s worth noting that the deposit contains significant amounts of silver and base metals.

• Margin of Safety: Probably
• Upside Potential: Very High
• Play type: Alpha and High Beta
• Skin in The Game: Insiders & Close Associates own ~38% (pre-financing)
• Status: Drilling

Idaho Champion Gold Mines (ITKO.V) ~US$12 M in EV

Two semi-advanced projects in Idaho, USA.

Comments: A lot of bang for the buck. One past producing mine with exploration potential (Champagne Project) and a recent discovery at the Baner Project. Planning to do a lot of drilling at both projects and just announced mobilization of a second drill rig at Champagne. A bit of margin of safety and upside potential from both projects and Champagne had significant amount of silver on top of the gold. US$6 M per projects is too cheap given the de-risked nature of both coupled with the jurisdiction. I expect Idaho Champion to do well next year.

• Margin of Safety: Kind of
• Upside Potential: Very High
• Play type: Alpha and semi-beta
• Jurisdiction: Tier #1
• Skin in The Game: Insiders own >30%
• Status: Drilling

FireFox Gold (FFOX.V) ~US$11 M in EV

Multiple targets in the Finland.

Comments: Multiple high quality gold targets in a great area. Got ground close to Rupert Resources and other areas where majors are involved.

• Margin of Safety: No
• Upside Potential: Very High
• Play type: Alpha
• Jurisdiction: Tier #1
• Skin in The Game: Insiders own 15%
• Status: Drilling

Prosper Gold (PGX.V) ~US$12.3 M in EV

Multiple targets in the Red Lake area, Canada

Comments: Multiple high quality gold targets in a great area. I expect the stock to do very well in 2021. Also got hidden value in the form of a Porphyry Copper-Gold Asset in BC, Canada.

• Margin of Safety: No
• Upside Potential: Very High
• Play type: Alpha
• Jurisdiction: Tier #1
• Skin in The Game: Insiders own 21.1%
• Status: Waiting to drill

Heliostar Metals (HSTR.V) ~US$21.8 M in EV

3 rigs drilling gold project in Alaska (USA) and picked up three silver projects in Mexico

Comments: A lot of bang for the buck. The company has a resource of 384 Koz of high-grade gold in Alaska, lots of cash and their silver portfolio looks quite impressive (Silvercrest has staked ground surrounding one of the three claim blocks in Mexico). A bit of a margin of safety due to already having very high grade ounces in Alaska confirmed. I expect the stock to have limited downside from here and at least 50% potential within 6 months.

• Margin of Safety: Yes
• Upside Potential: High
• Play type: Alpha and Beta
• Jurisdiction(s): Tier #1 and #2
• Skin in The Game: Board and management owns 21.7%
• Status: Drilling

Heatherdale Resources (HTR.V) ~US18 M in EV

Past producing underground mine located in Alaska with $80 M spent on the project. Copper, gold and other metals.

• Margin of Safety: Yes
• Upside Potential: High
• Play type: Alpha and Beta
• Jurisdiction: Tier #1
• Skin in The Game: Insiders own 16.2%
• Status: Drilling

Ophir Gold (OPHR.V) ~US$9 M in EV

LSE system in Idaho. Historic resource and some excellent grades were confirmed in the past.

• Margin of Safety: Kind of
• Upside Potential: High
• Play type: Alpha
• Status: Waiting to drill

Blue Thunder Mining (BLUE.V) ~US$7.6 M in EV

Early stage exploration across 51,000 ha in Quebec, Canada.

• Margin of Safety: No
• Upside Potential:  Very High
• Play type: Alpha
• Skin in The Game: Board & Management owns 10.4%

Note: This is not investment advice. Goliath Resources is a sponsor and I own shares in all companies mentioned. Consider me biased and do you own due diligence. I can buy or sell shares at any time.

Best regards,

Erik Wetterling aka “The Hedgeless Horseman”

www.thehedgelesshorseman.com

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