Tuesday , 3 August 2021

Atlantic/Appalachian Gold Belt Miners and Explorers: An Executive Summary

The Appalachian/Atlantic Gold Belt runs along the boundaries between tectonic zones ranging from the state of Alabama in the USA to the province of Newfoundland and Labrador on Canada’s east coast. This summary report highlights the 42 publicly listed gold mining and exploration companies that operate in that region.

This article is an executive summary by Lorimer Wilson, Managing Editor of munKNEE.com consisting of 830 words from the 20,060 word original report by Chris Thompson, Director of Equity Research at eResearch.com with hyperlinks to 79 pages of specific information to provide as many details as the reader wants.

North American Geographic Regions – Appalachian Mountain (Highlighted)

Appalachian Gold Belt - North American Zones
Source: Modified from thinglink.com

Appalachian Gold Belt – Major Tectonic Zones

Appalachian Gold Belt – Major Tectonic Zones
Source: Anaconda Mining

Current Companies In Gold Production from the Atlantic Gold Belt

Current gold production comes from large, commercial mines in South Carolina, Nova Scotia, and Newfoundland and Labrador. Recent high-grade (“bonanza-grade”) discoveries by New Found Gold (TSXV:NFG; OTC:NFGFF) and Sokoman (TSXV:SIC; OTC:SICNF) in Newfoundland, Canada, and Aston Bay (TSXV:BAY; OTC:ATBHF) in Virginia, USA, have renewed investor interest and exploration activities in the regions. All dollar figures are in USD unless otherwise stated.

Company Spotlights

Aston Bay

  • is actively drilling its Buckingham Gold Project in Virginia, a new discovery of high-grade gold, in near-surface quartz veins
  • is planning to drill two historic gold mines in the Virginia Gold Belt and
  • has exposure to high-grade copper assets in Virginia and Nunavut, Canada
  • has a market cap of C$8.20 million and is currently trading at C$0.05/share
  • top holders of the stock are Mackenzie Financial Corporation (3.47%) with company insiders Michael Dufresne, Tom Ullrich and other insiders owning 1.9%, 1.86% and 1.77%, respectively, of the company shares
  • has no debt and C$0.2 million in cash and short-term investments on hand.
  • For in-depth analysis of this company’s activities please refer to pages 12 to 19 of the original report.

Tectonic Map of the Appalachian Mountains and Aston Bay’s Projects

Tectonic Map of the Appalachian Mountains and Aston Bay’s Projects
Source: Aston Bay Corporate Presentations (2020); eResearch Corp.

Aston Bay – Storm Copper and Seal Zinc Projects, Somerset Island, Nunavut, Canada

Aston Bay – Storm Copper and Seal Zinc Projects, Somerset Island, Nunavut, Canada
Source: Aston Bay – Corporate Presentation (2018); eResearch Corp.

Sokoman

  • has its flagship property, the Moosehead Gold Project, located in central Newfoundland with other gold projects in the area of Crippleback Lake and East Alder
  • has a market cap of C$42.5 million and is currently trading at C$0.30/share
  • has no debt and C$4.76 million in cash and short-term investments on hand.
  • Eric Sprott owns 20% of the company with company insiders owning 1.3%.
  • For in-depth analysis of this company’s activities please refer to pages 23 to 31 of the original report.

Gold Deposits and Showings in Newfoundland (Gold Dots)

Gold Deposits and Showings in Newfoundland (Gold Dots)
Source: New Found Gold website; eResearch Corp.

Magna Terra

  • owns the Cape Spencer and Hawkins Love projects in New Brunswick, hosting a resource of 151,000 gold ounces, and the Great Northern and Viking projects in Newfoundland, hosting a resource of 255,000 gold ounces
  • has a market cap of C$5.1M and is currently trading at C$0.11/share
  • has no debt and C$2.4M in cash on hand.
  • For in-depth analysis of this company’s activities please refer to pages 32 to 40 of the original report.

Magna Terra – Atlantic Canada – Project Locations

Magna Terra – Atlantic Canada - Project Locations
Source: Magna Terra New Release (November 20, 2020)

Financial Analyses of Companies Operating in the Atlantic Gold Belt

The original report analyzes the financials of 42 companies operating in the The Atlantic Gold Belt on pages 49 through 62.

Selective Drill Results

A mining exploration company searches for properties that it believes, through its knowledge of geology, have the potential to become an economic mineral deposit. The company will advance the project by completing early stage work such as geological mapping, geochemical sampling, and geophysical surveys but, to truly understand the geological structure and mineral potential that lies beneath the surface, there is no exploration activity more important (and more expensive) than drilling.

Good-to-great drill results can have a positive impact on a company’s share price. Go to pages 63 through 69  in the original report for some of the top drill results in each province/state from January 2020 until February 2021.

Sample of the Highest-Grade Drill Results January 2020-February 2021

Sample of the Highest-Grade Drill Results January 2020-February 2021
Source: Company Reports; eResearch Corp.

Recent Financings

To keep the mining drills turning, an exploration company needs the ability to raise capital each year to fund exploration activity.

Go to pages 70 through 76 in the original report of funding highlights for each company that raised capital over the last 14 months.

Recent Merger and Acquisition Activity

With gold setting a new floor level around US$1,800, market sentiment estimating continued upside potential, and a low-interest borrowing environment, merger and acquisition (M&A) activity has surged over the past year. Go to pages 70 through 76 in the original report for a list of M&A activity of companies in the gold industry over the past year.

eResearch is pleased to publish a 79-page industry report entitled “Atlantic Gold Industry Report – The Ultimate Guide to Gold Mining Companies in the Appalachian Gold Belt” which can be accessed here.

Editor’s Note:  The original article has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read.  The authors’ views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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