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July 02, 2022

Equity.Guru

Investment information for the new generation

Falcon Gold (FG.V) digs into the king of commodities – Today’s Idea

Unlike oil, wheat and cotton, gold’s valuation rise doesn’t negatively impact CPI and has a longer, less volatile price climb than its commodity counterparts. Therefore, investors seeking safe havens against inflation and geopolitical upheaval have put gold back in the spotlight and junior explorers like Falcon Gold (FG.V) are building portfolios to match the demand.

Even though junior gold explorers provide the greatest growth opportunity for your investment dollar, they also pose the greatest risk compared to producers, physical ownership, and royalty streamers. Falcon CEO and director, Karim Rayani, is working to lessen that risk through a diverse and prospective asset portfolio.

The company’s flagship Central Canada gold project, located in Ontario, covers more than 10 kilometres of the Quetico Fault Zone north of Lake Superior. Modern mineral exploration began at the turn of the 20th century with the construction of a single shaft which produced 27 ounces of gold from 18 tons.

Central Canada Mines (CCM) operated in the area in the early 1930s and by December 1934 reportedly produced 230,000 ounces of gold with an average grade of 9.9 g/t gold. CCM pulled up stakes shortly thereafter due to the untenable economic conditions of the Great Depression.

Since then, there have been various drill campaigns by different explorers unearthing intersections including 44.0 g/t gold over seven feet and 30.0 g/t gold over 3.8 feet.

Falcon Gold took up active exploration at the project in 2020, and since its inaugural drill program that year, the company has completed 26 diamond drill holes for a total depth of 4,058 metres. Previous intercepts at the J.J. Walsh Zone were 1.35 g/t gold over 4.1 metres and 1.57 g/t gold over 14.8 metres which included 20.50 g/t gold over 0.3 metres and 10.8 g/t gold over 0.3 metres.

The junior announced it will commence Phase III this month for three holes totaling approximately 1,000 metres at vertical depths between 200 and 300 metres to extend the gold bearing zones beyond the current drilled depth of 160 metres.

Rayani commented on the company’s upcoming campaign efforts:

“We are excited to finally test the historic Central Canada Mine Zone to a new target depth between 300-400m, not previously done by past operators. Falcon has been successful in intersecting 4 parallel zones along the CCMT and we are looking forward to testing these zones at greater depth below the old workings. Broad mineralization containing high grade domains have been intersected at the CCMT from Falcon’s past drilling campaigns.”

Falcon Gold’s portfolio also includes nine other projects in mining friendly jurisdictions:

  • British Columbia, Canada
    • Spitfire and Sunny Boy Project
      • Sampling as high as 168 g/t gold
      • Recent drilling intersected 68.7 g/t gold near surface
    • Gaspard Gold Project
      • Early-stage gold project in BC’s Clinton Mining District
      • Similar geology to the Spences Bridge Gold Belt
  • Ontario
    • Springpole West Property
      • Historic grab samples returned up to 8.38% Zn, 16 g/t Ag and 0.05 g/t Au.
    • Burton Property
      • Historic drilling intercepts included 9.34 g/t Au over 7.75 metres and 12.47 g/t Au over 3.13 metres
  • Newfoundland
    • Golden Brook
      • JV with Marvel Discovery
    • Great Burnt
      • Recent drilling in 2020 by Spruce Ridge Resources returned 8.06% Cu over 27.2 metres
    • Gander Zone
      • Recent geochemical surveying by Sassy Resources returned results of 1,432 ppb Au in northeast trending zones
  • Argentina
    • Esperanza gold/silver/copper
      • Diamond drilling in the 1990’s by Japanese Agency, JICA, returned one metre at 9.11 g/t Au, 28.59 g/t Ag, and 0.42 metres at 24.3 g/t Au, 61.10 g/t Ag
  • Chile
    • Viernes Property
      • Located in an area that has produced 30.6 million tons copper, 9.2 million ounces of gold, and 129.3 million ounces silver since the 1990s.

Trading at $0.09 CAD per share, Falcon Gold’s ~10.0 million CAD market cap makes sense if you only consider the Central Canada asset, but it slips off the reality scale when you tally in the nine other properties the company has in its portfolio.

As our world works through current geopolitical dangers and struggles to find its economic footing, fiat currencies will continue fluctuate as the next reserve currency is determined, gold, not bitcoin, will provide safety for investors.

Please remember to do your due diligence and speak with a professional investor advisor before making any portfolio decisions. After that, pick your winners. Summing up, Falcon Gold will continue to benefit from this unsure economic environment and as such could provide shareholders with the growth opportunity they are dreaming of.

Check out Vishal’s technical breakdown of Falcon Gold here.

For more opinions on the junior and its prospects, check out our latest Investor Roundtable Video.

 

–Gaalen Engen

Full disclosure: Falcon Gold is a Equity.Guru marketing client.

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