Kirkland Lake Gold

  • ECR Minerals – right at the heart of Australia’s second gold rush (ECR)

    The goldfields in Victoria, South Australia are grabbing the world’s attention for the second time in history.

    Upon the first discovery of the precious metal in the 1850s, we saw this desert area become a major international mining centre.

    As you can probably imagine, technology has moved on from the hand-dug pits, wooden ladders and dynamite that marked these times.

    Today, 3D-mapping, drone-based mineralogical studies, and vast national resources devoted to seismic, geochemical and geochronological surveys are unearthing a deeper, second layer to Victoria’s gold rush.

    The Geological Survey of Victoria now estimates that 75 million ounces of high-grade gold is currently sitting under the earth in Australia’s most southern state.

    Tax no dampener on gold rush

    The scale of finds being made in Victoria are so enormous that the local government is even keen to cash in.

    In January 2020, it announced that mines recovering more than 2,500 ounces of gold a year would be subject to a 2.75% tax.

    But this has done little to dampen exploration interest.

    Not least because the state government has been handing out multi-million-dollar grants to mining companies to get their projects underway.

    What the tax development does mean, however, is that the cost of mining an ounce of gold has risen to the point where only the most well-capitalised projects with licenses to boot will succeed.

    Enter ECR Minerals (LSE:ECR).

    ECR has more than a few strings to its bow in Australia.

    The firm’s main area of interest is the Victoria boom.

    In Bailieston and Creswick, ECRboasts two enormously exciting and prospective Victoria gold projects.

    Bailieston is found in the major orogenic Lachlan Fold Belt, while Creswick sits on the Dimocks Main Shale that extends to Ballarat then miles to the south.

    Bailieston’s location within Victoria

    Recreating Kirkland Lake’s success

    Kirkland Lake Gold (TSX.KL) (NYSE:KL) has become the poster child for success in the current wave of Victoria gold interest.

    In the last five years, the firm’s share price has exploded 2,263% thanks to its ownership of the Fosterville Gold Mine.

    This has made the company and its investors rich by any standard.

    Fosterville is the largest gold producer in Victoria, increasing annual gold production by 315% between 2014 and 2018 while also seeing a 540% jump in gold head grade from 4.6g/t to 24.8g/t, according to the national geological survey.

    Operating cash costs of $130 to $150 per oz are laughably small for a world-class deposit, and the spot price of gold hitting new eight-year highs of $1,759 per oz has done nothing to dampen enthusiasm for the precious metal.

    ECR’s key tenement of Bailleston sits just 18 miles east of Fosterville and on the same rich seam of gold that has made millionaires of Kirkland’s investors.

    Trading volume has started to pick up in ECR since it won licences at the start of 2020.

    But with wider equity markets consumed by Covid-19, attention has been diverted away from a potential goldmine.

    With the ECR share price trading in a range at around 0.7p, there is huge upside potential to be had.

    The Blue Moon prospect at Bailieston, Victoria

    Firms flocking to Victoria

    ABC Australia reported in May 2020 that more than 80 mineral exploration applications are now underway in Victoria.

    And it is the UK and Canada-listed companies that have got there first.

    Top names include Power Metal Resources(LSE:POW), Red Rock Resources (LSE:RRR) and Fosterville South (TSX.V:FSX).

    The latter of these has this week spun off two of its gold projects at Avoca and Timor in Victoria — bought from none other than ECR — to create a new company, Leviathan Gold, with FSX shareholders receiving shares in Leviathan on a one-to-one basis.

    Shares in FSX rose by nearly 30% to an all-time high of CAD$4.35 on the news.

    ECR’s sale of Avoca and Timor to Fosterville South means that – as well as an upfront $500,000 to fund its Bailieston and Creswick exploration – ECR will receive $1 for every ounce of gold discovered, up to a maximum of $2,000,000.

    Multinational miners are now converging on Victoria, but they have been beaten to the punch to by their nimbler rivals.

    As a relatively small AIM-listed exploration, the results here could be a kingmaker for ECR.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • REPORT: Fosterville South Exploration – pursuing a new frontier in high-grade gold exploration

    Download this EXCLUSIVE report from ValueTheMarkets to discover why Fosterville South (TSX-V:FSX) is among the world’s hottest, high-grade gold exploration plays.

    A spectacular underground gold rush is underway in the Australian state of Victoria.

    It began just five years ago with the discovery of vast seams of high-grade gold at the Fosterville Gold Mine.

    Thanks to significant advances in drilling technology and subterranean surveying techniques, mining companies can now access previously untappedlarge-scale deposits of high-grade gold.

    For gold exploration firms, this is an extremely exciting new frontier.

    The official Geological Survey of Victoria has even gone on-the-record to say it believes that at least 75,000,000 ounces of the precious metal are now waiting to be discovered across the state.

    To put this into context, 88,000,000 ounces of gold have been mined in Victoria in the last 170 years.

    At current spot prices, those undiscovered ounces would be worth a staggering $127,500,000,000.

    With such great potential, it is no wonder the region is attracting so much international investor interest.

    After all, the results at Fosterville have been stunning.

    By the end of 2019, the mine’s owner, Kirkland Lake Gold (TSX:KL) (NYSE:KL), reported high-grade gold reserves of 2 million ounces with an additional 1.7 million inferred ounces at the site.

    Better yet, between 2017 and 2019, the company mined 1.2 million ounces at Fosterville for a cost of just $315 an ounce, and an incredible average grade of 30.6 grams a tonne!

    The Fosterville Gold Mine comfortably leads the pack when it comes to the world’s highest-grade, lowest-cost mining operations.

    With such phenomenal success, it is no surprise that Kirkland Lake’s share price shot up over 27 TIMES, from C$2.20 in July 2015 to more than C$60 by the end of last year.

    This has transformed the miner into a C$15 billion firm.

    Now, with so much more high-grade gold potential remaining in Victoria,  which company might be the next to experience such meteoric growth?

    Fosterville South Exploration (TSX-V:FSX) certainly has strong potential.

    Read this SPECIAL REPORT from ValueTheMarkets to learn the fascinating backstory to the incredible opportunity at Fosterville South (TSX-V:FSX)

    The pitch for Fosterville South (TSX-V:FSX) is as straightforward as it comes.

    Fosterville South (TSX-V:FSX) has managed to secure 1,386kmof what could prove to be some of the most promising prospecting land for large-scale, high-grade gold deposits anywhere on the planet.

    With a fully-funded, high-impact drill campaign ready to go in 2020, Fosterville South’s (TSX-V:FSX) award-winning technical team is particularly bullish about the company’s Lauriston Project.

    Lauriston directly borders the Fosterville Gold mine, and the indications are that it shares the same geological features.

    Rex Motton, Fosterville South’s (TSX-V:FSXchief operating officer and the original inspiration behind this opportunity, is convinced about the potential for what modern drilling could uncover: 

    “Victoria has hardly scratched the surface when it comes to exploring these newly identified, high-grade underground gold zones.

    There has been a lot of exploration done at Ballarat and Bendigo as they are very big goldfields, but when you look in a regional sense, there are very few deep drill holes.

    Even on our ground in Lauriston, which sits directly adjacent to the Fosterville Gold Mine, there are only about a dozen reverse circulation holes and half a dozen diamond holes

    None of these have gone deeper than about 200m in terms of drilling. For an area that is 600km2 in size that is minuscule. With such high-grade, near-surface historic production here, that is extremely surprising, but it also opens up an incredible opportunity for Fosterville South.)

    To learn exactly why Rex Motton is so confident about Fosterville South (TSX-V:FSX) and how he was able to secure such a large area of prime high-grade gold exploration land DOWNLOAD THIS EXCLUSIVE REPORT from ValueTheMarkets.

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    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance