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:
Highlights:
- 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).
Team
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:
Project
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.
Best regards,
Erik Wetterling aka “The Hedgeless Horseman”
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