Tudor Gold – Generating the Perfect (Gold) Storm
Gold has recently topped US$ 1,400 causing investors to pay close attention, but is a related surge in BC’s Golden Triangle going unnoticed?
Maybe you missed Pretium Resources’ (TSX/NYSE: PVG) move from $3 to $16 or Seabridge Gold’s (TSX: SEA | NYSE: SA) move from 50c to over $35 based on discoveries in the Golden Triangle of NW BC that totaled over 83 million ounces of gold. This endowment was not lost on the management of Tudor Gold Corp. (TSXV: TUD) who entered the Golden Triangle under the direction of their CEO Walter Storm in 2015 with the purchase of several claim blocks from other exploration companies before the recent re-discovery of this regional play. The total acquisition costs of the property groups in 2015/16 were less than $4.5 million. Today’s market cap for Tudor Gold is just over C$52 million, indicating this acquisition created substantial value for TUD’s investors, with stock still under 50c.
The Drill Results That Got Attention
In the spring of 2019 Tudor Gold announced the discovery of a newly identified gold and copper zone at its Treaty Creek (60%) property. They named this new zone Goldstorm. The Company stated that this zone is not the NE extension of the previously identified Copper Belle zone, but they could be genetically related. The final hole of the 2018 drilling campaign illustrated the potential of this newly identified zone. Hole CB18-39 returned 563.8m of 0.981 g/t gold, 4.4 g/t silver and 352.2 ppm copper, ending in mineralization. This is the largest intercept to date on the project – an indication of what’s to come in 2019. So far the Goldstorm mineralization is outlined over an area of 450m by 500m while the Copper Belle is a 300m by 650m zone thus far. Together these areas and the thicknesses reported from drilling significant resource tonnage potential.
The crews are back at the project for the exploration season and the Company raised over C$3 million and attracted Eric Sprott as an investor. In 2019 the Company plans 14,000m of drilling to extend the Goldstorm zone. The Treaty Creek property is adjacent to both Pretium and Seabridge. Tudor’s work identified nine mineralized zones. These zones are in the same geology and structural position as the gold/copper porphyry deposits as Seabridge, but often with higher grades exhibited and significant widths.
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The Company’s website boasts “We know about Geology.” To be more specific, their focus is the Geology of BC’s Golden Triangle with over 38,000 ha of project lands. To understand this vast area and its geology and find the next big deposit takes considerable experience to recognize the “right” geology. To do this Tudor Gold brought in award-winning geologist Ken Konkin, P.Geo. Investors already know Konkin as instrumental in the discovery of the Valley of Kings deposit that contains over 8,000,000 ounces of gold, adjacent to the Treaty Creek property. It is Konkin’s experience that identified the Goldstorm as a new mineralization zone and he will direct the continuing exploration there.
Let’s Sum Up
Tudor Gold provides exposure to exploration success in this renewing gold market. The Company is run by management with a record of success in financing and discovery. In addition, these projects lie within the Golden Triangle where Canada’s most significant gold finds of the last decade are located. Their projects and discoveries continue this productive geology. The drills are turning and now is the time for the shrewd gold investor to consider this stock as a way to benefit from gold exploration success and a market looking for the next big discovery.
Ronald Wortel, MBA, P.Eng. is a mining investment professional with extensive experience in analysis of companies, projects and markets. He worked as both a sell-side ... <Read more about Ron Wortel>