By Dr. Michael Green
The good news just keeps on coming from MetalNRG with this morning’s upbeat progress report on the GoldRidge Gold Project in Arizona. It has got to be said that the news coming out of GoldRidge is extremely encouraging. We think it’s safe to say that there looks to be a far greater opportunity here than was initially envisaged.
This was first glimpsed in the publication of MetalNRG’s CPR, completed in May 2021 by SRK USA. They were able to highlight that, not only were there turn-key prospects to develop vein-hosted mineral resources from available drilling, but also that this project offered great opportunities to discover satellite gold deposits by using fairly low-cost exploration methods.
Since then, the company’s Senior Geologist, Bart Stryhas PhD CPG, who is based in the USA and leading the project, has embarked on a comprehensive programme of work. This is to give the board a solid understanding of the history of the project, the potential it could offer and a clear pathway to add substantial value to the project.
In this process, 446 historic drill holes (totalling 11,000m) with gold and silver analyses and 170 surface rock samples with gold analysis have been located, along with the compiling of 280 soil geochemical assays which come with multi elemental analysis. This is alongside registering several geologic maps at various scales. In all, some 5,109 files have been reviewed and used as feed into MNRG’s development approach.
At the time Rolf Gerritsen, MetalNRG’s CEO was quick to point out that “The GoldRidge Project appears to offer a considerable larger opportunity than previously anticipated and the work completed to date by Bart confirms that the area has been under explored and under developed with solid indicators of mineralisation throughout the property. Between now and November we will be on site and we will further validate our assumptions via detailed field work. We have the waste dumps and the remaining pillars that are available to us but going after them without a plan to capture the additional opportunities would not be right to ensure we maximise returns for our shareholders.”
The Gold Ridge Gold Project lies 85 miles east of Tucson in Dos Cabezas Mining District, Cochise County in Arizona. MetalNRG has a 100% interest in the project, which covers an area of 9.3km². This is a brownfield gold exploration play where there are ample opportunities for development as this area has remained underexplored for the past 35 years and looks to have plenty of potential for new gold discoveries.
The Gold Ridge Project spans a large area which includes three historical underground gold mines called Gold Prince, Gold Ridge and Dives. They were each mined over various intervals between discovery in 1877 and 1996. Historical production at the Gold Prince Mine through to 1996 saw a total of around 22,000 ounces of gold mined above the #6 level. This mine was operated from 1984 to 1996 by Phelps Dodge, Queenstake Resources and lastly Western States Mining Corp.
These three historic mines cover a 1.8km strike length that lies within a prospective 5km long vein swarm. The geology of the area suggests that steeply dipping high-grade gold bearing, quartz-sulphide veins are hosted within the 32km long, Apache Pass shear zone, which lies adjacent to a Tertiary plutonic-volcanic centre. The historic Dos Cadezas Mine was located in the nearby plutonic rocks which were magma that cooled below surface.
MetalNRG is focused on gaining a complete understanding of the rock types, structures, soil geochemistry and mineralisation of the mine area. With such knowledge, the team is seeking to develop Mineral Resources and Mineral Reserves to support recommencing mining.
Consolidating nearby previously producing mines in the area looks as though it could become interesting. Initially, the team looked at waste dumps with gold and then gained some impressive assays when sampling the pillars underground. However, the geologists have now taken a step back and are looking at the much bigger picture. SRK reckons that there are much larger opportunities to these three small mines, which are not that far apart. Truth is that no one has looked at the overall geology and structure.
MetalNRG offers investors exposure to both energy and precious metals with a growing tally of impressive assets that are either close to or already now producing revenue. Fundamentally, this is a private equity format to generate revenue over both the short and longer term. In the search to initially deliver short term value, all these interests are being packaged as SPVs.
Each SPV is being established with a dedicated management team to grow the business both organically and by acquisitions to increase revenue and create companies that can stand on their own two feet. MetalNRG will be working with them on the financing to make sure things happen. The corporate strategy is to spin off these SPVs as separately quoted vehicles and for this to make commercial sense, a £10 million market cap is likely to be the minimum target.
We believe GoldRidge has all the makings as the next SPV out of the traps to IPO after BritNRG. By any yardstick MetalNRG is a very undervalued stock in our view, with the share price currently sitting at a lowly 0.575p. As we mentioned last week, we are working on an initiation of coverage report which is expected to be released shortly.
RISK WARNING & DISCLAIMER
MetalNRG is a research client of Align Research. Align Research holds an interest in the shares of MetalNRG. Full details of our Company & Personal Account Dealing Policy can be found on our website http://www.alignresearch.co.uk/legal/
This is a marketing communication and cannot be considered independent research nor is it subject to any prohibition on dealing ahead of its dissemination. Nothing in this report should be construed as advice, an offer, or the solicitation of an offer to buy or sell securities by us. As we have no knowledge of your individual situation and circumstances the investment(s) covered may not be suitable for you. You should not make any investment decision without consulting a fully qualified financial advisor.
Your capital is at risk by investing in securities and the income from them may fluctuate. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results. The marketability of some of the companies we cover is limited and you may have difficulty buying or selling in volume. Additionally, given the smaller capitalisation bias of our coverage, the companies we cover should be considered as high risk
This financial promotion has been approved by Align Research Limited