EDITOR: | May 12th, 2017 | 4 Comments

TerraX- An Unstoppable Force in the Gold Sector

| May 12, 2017 | 4 Comments
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I’ve lauded the virtues of gold in previous posts in the light of political instability globally. Therefore, I see the development of high quality gold deposits only as a positive for the future. TerraX Minerals Inc. (TSXV: TXR) (“TerraX”) falls into the category of a gold junior miner that is exploring high quality gold deposits. And the results from its exploration of a rather massive area are immensely appetising.

In the middle of last year, the company received capital funding from a private placement to continue its exploration activities on the Yellowknife City Gold project. The company subsequently uncovered an impressive set of results at the Mispickel target on its Yellowknife City Gold Project, which have simply bolstered my confidence in this already exciting story.

The company is securely supported by an impressive team of experienced professionals. Joseph Campbell, Chairman and CEO, appears to have an instinct for solid gold discoveries, which include the Meliadine gold project in Nunavut in Northern Canada, which eventually sold for $697 million in cash and shares in 2010 to Agnico Eagle Mines (TSXV: AEM). Campbell is joined by Alan Sexton as VP Exploration, with more than 30 years’ experience, including that of site manager at Meliadine, from discovery through to pre-feasibility.

The added fact that management owns 11% of the company is a comfort for investors that they will act in the best interest of the company.

The deposit itself is located in Canada’s Northwest Territories. It spans 129 square km with 23 km strike length over eight drill targets. What really makes me enthusiastic about TerraX is that these districts spread across the property has the potential to be one major, interconnected, mineralised system.

What is more, the deposit is located in an area in Canada renowned for some of the highest grade gold mines in the country’s history. Two companies operated here until the early 2000s: Con Mine, producing 6.1 million oz at 16.1 g/t gold; and Giant Mine at 8.1 million oz at 16.0 g/t gold. It is worthwhile to note that these two companies did not go out of business because the gold dried up. Indeed, Campbell has said on numerous occasions that his company is not drilling deep underground. The results they are getting are close to the surface, which in theory should make for cost effective mining. It also means there is longevity here, a fact that would give any investor a warm fussy feeling.

Although TerraX’s property is underexplored, it would be relatively easy to set up mining in the area since it is surrounded by excellent infrastructure with year-round access. Additionally, the Blue Fish Hydro Dam can provide the property with low-cost power.

We’re waiting for more assaying results from TerraX, but this far we haven’t been disappointed. We see this as a solid investment that is set to pay off in the long term, and perhaps even sooner rather than later. With the gold price on the up, we think TerraX can become an unstoppable force in the gold sector.


Lara Smith

Editor:

A Sr. Editor and Analyst for InvestorIntel, Lara is an internationally recognized expert in the field of mining analysis and a well-known speaker, Lara has ... <Read more about Lara Smith>


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Comments

  • jeremy revell

    laura,
    what do you like about gold? since we are not on the gold standard anymore what is its value, like a tulip< other than being considered a "precious metal". it does not have a lot of functional applications. I guess I'm on the side of warren buffet on this one, there is minimal functional value in this metal. I like your articles and interested in your take on this being an expert in the field. I just see cobalt, lithium, magnet metals as having tremendous potential as we shift to renewable energy. just feel that as we progress as a society that gold will go buy the wayside and there is just tremendously more value in other minerals.

    May 15, 2017 - 7:18 PM

    • Lara

      Thank you for your comment. I’m certainly not choosing gold over others metals such as cobalt. That being said..cobalt and lithium have industrial/commercial applications. I don’t see anyone ever buying cobalt metal and storing it as a store of value like one might with gold bullion. There is only one trader I know across my network of thousands that has literally sat on cobalt for 25years and is now milking it big time. That’s about as close as you may come to seeing something like cobalt /lithium as a store of value.

      Consider this as well…we used to use rare earths for all hybrid cars’ engines. The price of rare earths ran up in 2011 and immediately R&D moved towards reformulation and reducing the overall requirements and in some cases eliminating the need completely.

      In the 80’s a can of coke’s surface area used more aluminium than it does currently. So as industry..we move towards what I call an “efficiency of use” which places a cap on the price and demand for metals/commodities

      May 16, 2017 - 12:05 AM

  • Analyst says TerraX may be the next major player to emerge onto the gold scene

    […] Last month we reported on the activities of junior explorer TerraX Minerals Inc. (TSXV: TXR) (“TerraX”), a company undertaking exploration works on Canada’s highest-grade gold region. The results are now in, and the company has managed to assay impressive gold values while considerably increasing the potential size of their resource. The zone known as Sam Otto has grown from 350m up to 750m with a likely 300m of depth, and crucially, individual cores returned grades as high as 5.07 g/t Au (1.80m), leading me to believe that we are about to see the next major player emerge onto the gold scene. […]

    June 27, 2017 - 12:00 PM

  • Ellen

    None

    June 29, 2017 - 2:48 AM

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