Gold in Golden Share

 Golden share is a multi-commodity, multi-project company with projects based in Ontario, Canada.

This company has intrigued my interest since it first received permitting and local community approval on its diamond potential play in early 2019. A raw, untouched project that is in need of its first drillhole. Since it has intrigued my interest, the need to look at all 3 other main projects was critical in looking at the cross-potential of the company.

Where the diamond project has maximum and unknown potential built into it, two of the other projects are in the right industry at the right time. Gold and Silver are hitting strong rallies in the market and the value of a single gram of Gold is now a significant $ figure. What if you have a few grams per tonne of gold in the ground? What if you have a dozen grams per tonne in the ground? I decided to do a bit of research on those two projects and the potential can be quantified a bit more than the diamond potential project  as they both have a long history.

What is that potential?

Beren's River -- Upwards of CAD$1 billion of AUEQ resource, hard asset, in the ground.

Here is a link to the blog page --- Beren's River Blog Article

Band-Ore -- Upwards of CAD$750 million AU resource, hard asset, in the ground with blue sky potential upwards of CAD$2+ billion in the ground.

Here is a link to the blog page -- Band-Ore Blog Article

Then of course the diamond project called Ogoki that brought me into this research phase. Potential is completely unknown with several hints that I have highlighted in the article below that raises the odds that the anomalies do in fact turnout to be kimberlite and possibly diamond-bearing.

That blog page can be found here -- Ogoki Blog Article

With 3 of the 4 projects highlighted to date. the bluesky potential could eventually lead up to CAD$5 billion of in the ground hard asset. 

Potential is not reality and reality does need the drilling. Drilling comes when the perceived value opportunity meets a market that rewards those value opportunities with financial commitment. Are we approaching that fork in the road?

In preparation for this heavy geology work, the company also brought another highly experience advisor to the company. This occurred only a week ago 

Here is the excerpt:

"Mr. Mackenzie (Mac) Watson has over 50 years’ experience in the exploration, development, and mining industry, and has been involved in the discovery of numerous mineral deposits in Quebec and Ontario. Mr. Watson was awarded Canada’s Prospector of the Year Award in 1991 for his contribution to the discovery of the Harker Holloway gold mine (Ontario), the Icon-Sullivan copper mine (Quebec), the Long Lake zinc mine (Ontario), the Ellison gold deposit (Quebec) and the Hebecourt copper deposit (Quebec); and again in 2010 for his contributions to the mineral discoveries in the Ring of Fire area of Northern Ontario. He was also awarded the Quebec Prospector of the Year Award in 1992 for his participation in the discovery of the Pusticamica and Verneuil gold deposits in Quebec. In 2015, Mr. Watson was inducted into the Canadian Mining Hall of Fame."

Here is the original news source -- New Appointment

Will the sun eventually shine on juniors that have been very patient throughout several years?

Only one more project to research. 

Golden Share winter prep

Golden Share - Winter preparation

Spent quite a  bit of time researching Golden Share and specifically the diamond project. They do also have a few other projects including a gold project.

Drill ready targets is really the underlying aspect of this company that is waiting for the perfect time.

The upcoming season would be ideal to get everything planned and set out for drilling on the frozen ground in January/February of 2021. 

The stock price is finally starting to recover and a nice rally is ensuing. 

If this can continue through and ahead of the fall..a flow through financing is really what is needed to get the drills turning. A flow through somewhere between 20 to 30 cents would be ideal.

With funding comes contracted out drilling. With drilling comes speculation and execution. With speculation comes further rally. With execution comes results. With results comes reality up or reality down for the share price. 

Let's bring on the Drill!

March 2019 Update

Just a quick update.

I will be updating some of the companies listed in the index on the right.
Currently updating the SWY page.

Brixton Metals and Diamonds deux

Brixton Metals and Diamonds $BBB (TSX)

Brixton Metals is an explorer in cobalt, nickel and silver, but late this summer (2018) they discovered a new kimberlite diamond project and have recently released kimberlite intersections on numerous drillholes.

This is the news release they provided -- 2018-11-29

Here are some excerpts:

Expansion:

"The new drilling seems to expand the kimberlitic body to a minimum 20 hectares in size."

Infrastructure:

"The kimberlite intersections are located on patented land, road accessible, and near power, rail and local infrastructure."

Here is a cross section of  the kimberlite intersections with some theoretical horizontal layers.

Interpretation:

On the initial 2 kimberlite intersections, my initial thought was to lean to a rather thin single sheet of kimberlite. After the gravity survey, there was a chance of a nice 10+ hectare traditional pipe. Now it looks like neither are true and there is some other method of emplacement of the kimberlite. The current thought is that a feeder pipe (or pipes) came up to surface and then (following the path of least resistance) found some horizontal structures that were weakened and fed directly into those. More drilling is required to confirm this type of theory as there are a lot of question marks in the image above. The good news is the highest layer has reasonable thickness in the magnitude of 20 to 70 metres and is near surface with not too much overburden. This is definitely mineable for an open pit as compared to a thin single sheet. There will need to be a bit more dilution added to any analysis as compared to a traditional kimberlite pipe.

Here is a plan view of the drilling.

Interpretation:

This absolutely confirms the gravity survey was well worth the money as the near surface intersections of kimberlite is spread out among the area. The target area has now been raised to 20 hectares in size and may increase with further drillholes. The expanse of the kimberlite at depth will need some more drilling to confirm as the gravity survey will only be reflective of near surface difference in densities and less reflective of material deeper into the earth. The key point is that future gravity or magnetic surveys are probably unnecessary and the drill bit will obtain valuable information.

Here is a view of some of the core log.

Interpretation:

That are a lot of different kimberlite textures in the core. One has to ask if there are multiple emplacements of kimberlite, multiple events. An ancient volcano will follow the path of least resistance to surface. A subsequent ancient volcano is likely to follow a similar path and that might be what we are seeing.

That diamond fragment found earlier is still very key as it implies that the magma deep into the earth made diamonds a couple of billion years ago and each eruption will be able to source this material even if those eruptions are a good chunk of time apart.

The future:

Caustic results of these varying kimberlite textures will go along way to figuring out if there is any hope of economics on this project. Close to infrastructure, near surface, now they just need to find some economic diamonds. It looks like the company is more then willing to let someone else spend $$'s on this project in exchange for an earn-in. There are probably a few companies interested. Most of these companies are probably more then happy to let Brixton pay for and release some caustic results before attempting to buy into the project.

Brixton Metals and Diamonds

Brixton Metals and Diamonds $BBB (TSX)

Brixton Metals is an explorer in cobalt, nickel and silver, but late this summer (2018) they discovered a small interval of kimberlite material in three drillholes.

This is the news release they provided -- 2018-08-31

Here are some excerpts:

Hole 34:

"Hole 34 was drilled at 130 degrees azimuth with a dip of 38 degrees. Overburden was encountered to 65m drill depth of approximately 40m vertical depth. The kimberlite in hole 34 is a 15m interval from 65m drill depth. The kimberlite is very weathered including limestone rich fragments."

Hole 36:

"Drill hole LM-18-36 was drilled at 120 degrees azimuth and a 38 degrees dip. Overburden was encountered to 36.5m or about 22m vertical depth. The syenite clast rich kimberlite was encountered over a 14m interval from 36.5m."

Hole 37:

Hole 37 was drilled at 351.5 degrees azimuth and a 38 degrees dip. Overburden was encountered to 57m or about 35m vertical depth.  The kimberlite interval in hole 37 was 44m in length from 60m. The kimberlite unit contained limestone fragments and is very weathered.

Here is a map with magnetic readings:

Interpretation:

Looking at the kimberlite intersections (14, 15 and 44 metres), which are not true depths, it looks like it could possibly be a sheet type structure that extends over the area. There is the magnetic anomaly to the centre right along hole 36 as well. The other two holes are far away from that anomaly. Is this a sheet or not?

Since those discovery holes, the company proceeded with a ground gravity survey, not the cheapest thing to do, but very worth it in this case.

The news release on the ground gravity results came out recently -- 2018-11-14

The gravity image says it all:

Interpretation:

The gravity anomaly smacks right in the middle (blue) with hole 34 just barely catching the southern part of the anomaly and hole 37 just barely catching the NE corner of the anomaly. Hole 36 is a bit to the East of Hole 37 and not catching the anomaly as clear as the other ones. The biggest point here is that there has been no hole drilled right down the middle of this gravity anomalies. They have only had just barely hits on the target and are planning Hole #51 right down the middle of the anomaly. The concept of a sheet has turned into big possibilities of a pipe with the smaller intersections based only on catching the outer edges of the pipe.

Diamonds:

Besides the gravity survey success, the biggest kicker is back on the first news release where the company did a small amount of caustics. In a 6.5 kg sample of very weathered material, they managed to produce an actual diamond fragment. This fragment could have been part of a larger stone.

Description -- 0.28 mm x 0.20 mm x 0.08 mm -- Off-white, transparent, no inclusions.
The geometry here would have had that fragment land on the 0.106 mm sieve, which is the lowest sieve on the micro diamond scale.

One out of every 100 kimberlite pipes has diamonds. This already has a diamond found in a small sample on an outlier hole. This diamond is extremely significant at this stage of the project.

Size:

What size is this anomaly? A lot of diamond exploration happens on anomalies that are 2 or 3 hectares and smaller. A lot of the diamond projects are poking drillholes through anomalies that are 1 hectares or less. Very few targets in the world today exceed or even meet 5 hectares in size.

"The geophysical anomaly target has an approximate size of 500 metres in a northeast direction and approximately 230 metres in a northwest direction"

That equates to 115,000 square metres. 10,000 square metres = 1 hectare.
This anomaly reaches 11.5 hectares in size. Comfortably a 10+ hectare target.

What is known:

1 - Tier 1 size anomaly.
2 - Diamond bearing confirmed.
3 - Gravity survey shows a clear target.
4 - No drillholes down the centre of this target, only on the far outskirts.

Risk/Reward:

Drillhole 51 has a strong possibility of intersecting a significant length of kimberlite that could be perceived as a very positive by the marketplace. Caustic fusion on the intersections (if warranted) would come back in 2 or 3 months and possibility of diamonds in the results are very high, then the size distribution would need to be looked at. If this becomes a bust of a diamond anomaly, the company still has focus on other commodities. This is not a 1 anomaly, do or die scenario. This is a 1 anomaly that could be very rewarding if positive or business as usual if negative.

Future:

If this anomaly has any sort of success, this would probably set in motion an exploration plan in the near area that focuses on some diamond exploration instead of the other commodities. More gravity surveys in highly speculative areas. This exploration would only occur if the results of this drillhole 51 are considered a success and the market rewards the company with the ability to raise some funds at higher share prices to continue this part of the endeavor. At this point, the market has overlooked the details of the potential here.

Welcome

Welcome to my new blog.

I'll be building up this blog with information on Diamonds as relates to mining, statistics, analysis, stocks, and whatever else I can think of.

I'm not sure where this will go...but hopefully someone, somewhere will learn something new.

Enjoy!

ps. If you have any suggestions, please feel free to leave a comment or email me at stockhouseekim@gmail.com