Source: Streetwise Reports 07/27/2017
Aggressive exploration at a gold project in Wyoming has caught the eye of one analyst who recently visited the site.
GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) announced at the end of June an aggressive 2017 exploration program at the company’s 100% owned Rattlesnake Hills gold project in central Wyoming. The program is scheduled to run from July through November. According to the company, “the fully funded, U.S.$4.0 million exploration program will consist of approximately 50 holes or 15,000 metres of drilling focused on four brownfield targets and six greenfield targets, additional soil and rock sampling and metallurgical testwork.”
Analyst Craig Stanley of Eight Capital recently visited the site and wrote on July 24, “Overall we were impressed with the team’s professionalism and experience, the project’s location and accessibility, and came away with a greater appreciation of the geology, notably the various structural orientations that prepared the rocks to host gold mineralization.”
He noted that three rigs are on site, “with the first batch of assays expected as early as August,” and a “maiden resource estimate is scheduled for H1/18 and will be based on nearly 100,000 metres of drilling, 20,000 metres of which were drilled by GFG.”
Stanley also stated that the Rattlesnake Hills project “hosts widespread gold mineralization in a 100% controlled, district-scale land position with excellent infrastructure in a mining-friendly jurisdiction. As such, we believe GFG could receive interest from senior and mid-tier gold producers,” adding that in 2011, “Agnico-Eagle signed a $76 million joint venture agreement to earn a 70% interest in the Rattlesnake Hills Gold Project, which is less than half GFG’s current market cap.”
Rattlesnake Hills, Stanley commented, “has numerous geological similarities to the Cripple Creek gold system in Colorado, which has produced over 20 million ounces of gold.”
Stanley also called attention to GFG’s “proven management,” noting that GFG is led by Brian Skanderbeg, “a professional geologist and former President and Chief Executive Officer of Claude Resources Inc., a TSX-listed gold exploration and mining company that was acquired by Silver Standard Resources in May 2016 for $337 million.” He also noted that GFG’s VP Exploration, Timothy Brown, “worked for 21 years at Cripple Creek, including nine years as Exploration Manager during which over six million ounces of gold were added to the resource. Three geologists that worked with Mr. Brown at Cripple Creek have also joined the GFG team.”
Eight Capital has a Buy rating on GFG and target price of CA$1.60 per share. Shares are currently trading at around $0.53.
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: GFG Resources Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources, a company mentioned in this article.
( Companies Mentioned: GFG:TSX.V; GFGSF:OTCQB,
from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17585