Doubleview Gold
Maiden Mineral Resource Estimate
Potential Outcomes & Expectations
Doubleview Gold’s highly anticipated maiden Mineral Resource Estimate (MRE) is expected to be released before the end of March, 2024.
While shareholders are enthusiastic about the release of Doubleview Gold’s maiden MRE, it is important to maintain realistic expectations which includes the current state of the junior mining sector. The mining industry has been stagnant for a long time despite the price of gold being near record prices for an extended period of time and recently setting a new historical high. However, a mining bull market is way overdue and there are indications that the tide might soon turn.
As a result of the current bear market, many junior mining stocks saw a decrease in their market capitalization after announcing their maiden MREs, while some experienced an increase. Despite the market reaction, the release of a maiden MRE is a major milestone that can potentially lead to significant outcomes.
Potential Outcomes
After Release of a Maiden MRE
The following are some of the potential outcomes after the release of a maiden MRE:
- Market
- stock price increases (attracts new buyers causing buying pressure)
- stock price remains the same (the results of the maiden MRE were already priced into the stock price prior to release)
- stock price decreases (too many shareholders sell in disappointment causing selling pressure)
- Strategic investor
- Well known mining figure becomes a shareholder and it attracts money to flow to the stock
- Well known mining figure becomes a shareholder and it attracts money to flow to the stock
- Strategic investment
- strategic investment is made by a major mining or non-mining company
- strategic investment is made by a major mining or non-mining company
- Buyout offer
- Major mining company makes an offer to buy the project or company
- Non-mining company makes an offer to buy the project or company
Recent Outcome Examples
Post-Maiden MRE Stock Price Decrease
The junior mining company below announced a maiden MRE on 20 November, 2023 and there was a series of material news starting on 24 November, 2023.
Strategic Investor
Although the following is not related to the release of a maiden MRE, it demonstrates the positive effect after a well-known mining figure becomes a shareholder of a junior mining company. The company announced a non-brokered private placement on January 22, 2024. While the name of the individual was only disclosed on February 15, 2024, the significant price increase and higher volume about one week before the announcement of the financing deal was most likely due to a leak of their involvement. The stock price and average daily trading volumes have both seen significant increases since this individual became a shareholder.
Post-Maiden MRE Stock Price Increases
The junior mining company below announced a maiden MRE on 22 February, 2024 and there was no additional news to explain the increase in the stock price. It took a few days for the price to start rising.
The junior mining company below announced a maiden MRE on 26 February, 2024 and there was no additional news to explain the increase in the stock price. It took a few days for the price to start rising.
The junior mining company below announced its maiden MRE on 22 October, 2023 and there was no additional news to explain the increase in the stock price in the time-frame of the chart below.
The junior mining company below announced its maiden MRE on 26 February, 2024 and there was no additional news to explain the increase in the stock price. It took a few days for the price to start rising.
Post-Maiden MRE Price Decrease Followed by a Buyout
GT Gold’s stock price decreased after the release of its maiden MRE on 06 July, 2020. Although the maiden MRE disappointed some shareholders, it was attractive enough for Newmont (~$US40 billion mining company) to make an offer for the company on 10 March, 2021.
The shareholders who sold in disappointment and lost focus on the big picture missed out on the C$3.25 buyout offer, which was more than double the price at which they sold.
Importance of a Maiden MRE
An maiden MRE is a significant milestone because it offers the first preview of the potential contents of a deposit. The primary benefit of a MRE is that it allows an interested company to assess the value of a deposit before making an offer to acquire it. A maiden MRE is just a small piece of a larger puzzle, and its importance extends beyond the numerical figures.
While a company’s stock price may decrease if shareholders are disappointed, a major mining company looks at more than just the numbers. They also consider the potential for expansion of the deposit through additional drilling and improving the grades of the maiden MRE.
Doubleview Gold
Potential to Increase Tonnage
In Doubleview Gold’s case, the tonnage of the maiden MRE is only a small portion of the potential tonnage indicated by the chargeability body of the extensive 3D-IP survey (image below). Since it is said that every hole drilled into the chargeability body of the 3D-IP has been mineralized, the remainder of the undrilled chargeabilty body is likely to also be mineralized.
It is also important to note that the mineralization envelop of the deposit might actually be much larger than the potential illustrated on the 3D-IP. Some drill holes which extended outside the chargeability body of the 3D-IP were mineralized (image below). Drill hole H022’s best portion of the intercept was actually outside of the chargeability body (the end portion of the intercept was 118.4m grading 0.80 g/t silver, 0.41 g/t gold, 0.55% copper, 31 g/t scandium and 132 g/t cobalt).
Doubleview Gold’s 3D-IP only covers ~20% of the total property (image below), leaving room for the remaining 80% to potentially host another porphyry deposit. The remaining ~80% has never been explored.
According to Doubleview Gold’s CEO, who is a geologist, the geology to the north of the 3D-IP is favourable to host additional mineralization/deposits. Alkalic deposits are known for having multiple smaller deposits, suggesting that there may be more deposits to be discovered outside of the 3D-IP (Doubleview Gold’s deposit is an Alkalic deposit).
Given the complexities involved in bringing a mining project to production, major mining companies typically look for tier 1 deposits – large, low-cost deposits with long mine lives.
Doubleview Gold has the potential to significantly increase the tonnage in its maiden MRE and become a tier 1 critical mineral deposit in the most desirable jurisdiction for mining such deposits.
Doubleview Gold
Potential to Increase Grades
In a report released in 2020, I mentioned that although Doubleview Gold’s grades were all above the cut-off grades used by BC porphyry deposits in production, they have not yet found the higher grades associated with a porphyry deposit’s heat engine/feeder system. Once found, the average grades of the deposit would increase.
Doubleview Gold’s last set of 2023 assays released on 26 February, 2024, revealed that it is homing in on the potential high-grade feeder system of the porphyry deposit. Based on the company’s recent geological interpretation, the potential feeder system is believed to be southwest of drill hole H067.
Doubleview Gold’s most promising targets have not been drilled yet. The Hoey Zone had the highest channel samples ever found at the project (channel sampling found rock samples of up to 8.11 g/t gold, 4.83% copper and .5% cobalt). The Hoey Zone has the potential to be the deposit’s higher-grade starter pit.
The new southern extension of the Lisle Zone, which was just named the Gold Rich Zone, encountered the highest grades of gold and copper intercepts drilled to date. The Gold Rich Zone lies between the Lisle Zone and the Hoey Zone. Since the company recently received a positive assessment on the Interim Archaeological Impact Assessment, the company is expected to drill the Hoey Zone once drilling resumes.
Due to not having drilled the most promising drill targets and not having found the higher-grade feeder system associated with a porphyry deposit, Doubleview Gold has outstanding potential to increase the grades of its maiden MRE.
Doubleview Gold's Maiden MRE
Contains Something Significant
Doubleview Gold’s maiden MRE is expected to include information about its proprietary scandium extraction process, as well as a cost analysis of the extraction process. Based on my calculations of the potential in-situ value of the deposit using data from drill holes, it is possible that the value of the scandium could surpass that of the gold and copper combined, even with a conservative price of US$1.50/gram for scandium.
If Doubleview Gold’s extraction process lives up to expectations, the market will no longer be able to overlook scandium as it has in the past. With T$R having extensively covered Doubleview Gold since 2020, T$R members will not be surprised by any outcome regarding scandium and the extraction process, assuming it meets expectations. However, the market, especially those who have been skeptical about scandium on social media, will be surprised if the company delivers as anticipated.
It is interesting to note that mining legend Robert Friedland currently serves as the co-chair and non-executive director of a junior mining company with a scandium project. He is also the company’s largest shareholder. link 1 link2
For more details on why Doubleview Gold’s scandium and its extraction process could potentially be a game changer for the industry, please refer to the article titled “Doubleview Gold – Tracking Scandium” in the supplementary information section below.
Scandium Demand Could Increase 150 Fold by 2030
Rio Tinto is currently the only North American producer of scandium, which it extracts from tailings. Even though Rio Tinto has recently started producing scandium, the company has expressed its desire to become a global supplier of the mineral.
Rio Tinto recently posted the following on its LinkedIn page: “There are 7 elements you can expect to see more of in a low-carbon world, and 1 of the most critical, and lesser-known, is Scandium.” link
Due to the proven advantages of scandium and its potential high demand in the green energy transition, there is significant interest from both mining and automotive companies.
If Doubleview Gold’s proprietary scandium extraction process and its scandium simply lives up to expectations, it holds the solution to the low-supply and high-cost barrier preventing widespread commercial use of scandium. If so, Doubleview Gold will be greatly sought after by investors looking to capitalize on the likely outcome, as well as by companies interested in owning a game-changing asset for the scandium industry.
A proprietary extraction process that produces the lowest cost scandium and can supply a significant portion of the demand would make other scandium-producing deposits economically unviable, leading to a monopoly in the scandium market.
It is important to note that Doubleview Gold’s proprietary scandium extraction process is uniquely formulated for its deposit and is unlikely to work on other deposits unless they have the exact composition.
Doubleview Gold's Plan
Some junior mining companies have no interest in being bought out and prefer job security by continuing to explore the project for as long as possible. Conversely, other companies aim to be bought out after creating enough value for their shareholders.
Doubleview Gold’s CEO has publicly stated that his exit strategy is to sell the project to a major mining company after creating enough value for its shareholders. It is important to note that the company’s CEO is also the company’s largest shareholder with approximately 32.6 million shares (his family is also said to be shareholders), so he has significant skin in the game and the most incentive to succeed.
At the company’s recent AGM in February, the CEO stated that he will be going on an international road show after the announcement of the maiden MRE.
“Things are happening behind the scenes,” teased Farshad Shirvani, president and CEO of Doubleview Gold Corp. (TSX-V: DBG, GER: A1WO38, OTC: DBLVF), which is set to announce its first resource that includes scandium.” – quote from Resource World article about PDAC released on 11 March, 2024 (link)
Conclusion
It is important to keep focus on the big picture, rather than on short-term fluctuations in stock prices, after the release of a maiden MRE. The market often overlooks the big picture and the macro trends.
The green energy transition cannot succeed without critical minerals. Countries around the world are urgently trying to establish their own domestic supply chains for critical minerals. Canada is home to vast quantities of critical minerals and has a strategy focused on becoming a global supplier of these minerals.
To encourage major mining companies to develop its critical mineral deposits, Canada offers some of the world’s most attractive incentives, such as fast-tracking permitting from 12-15 years to approximately 5 years, a 30% investment tax credit for exploration, and a 30% tax credit for equipment used in extracting and processing critical minerals.
Many of the world’s largest mining companies say Canada is an appealing jurisdiction due to its critical minerals strategy. In October 2023, BHP’s CEO, the world’s biggest miner, described Canada as “really attractive” (link). Although there are great lithium projects in other countries, this month Rio Tinto said it is eyeing Canada for a lithium project (link).
Doubleview Gold’s CEO has publicly said the company has been approached by major mining companies as well as some automotive companies specifically about the scandium.
Due to the green energy transition in progress, the outlook for certain critical mineral prices and Canada’s appealing incentives to attract major mining companies to develop critical metal deposits in its country, it is likely that Doubleview Gold will become an acquisition target under certain conditions.
To some people I might sound like a broken record due to all the bullish statements and bold predictions I’ve made about Doubleview Gold over the past few years. When it comes to investing in undiscovered stocks which have the potential to be life-changing, it’s important to understand that one can’t control when catalysts will happen, especially in a bear market like the one we’re currently in. The key things investors can control are the stocks they choose to invest in and the amount of research they put into their decisions. If one’s due diligence/research is correct, all that’s needed is patience for the payoff.
The release of the maiden MRE marks a new and exciting chapter for Doubleview Gold and its shareholders. Considering that Doubleview Gold will likely increase both the tonnage and grades in the maiden MRE, I will be thrilled if the maiden MRE estimate is only “acceptable” and its proprietary extraction process results in an industry game-changing low-cost scandium.
Since I am highly confident about what lies ahead, I continue to believe Doubleview Gold will likely be life-changing for certain patient shareholders with the right amount of conviction.
See below for the list of forward-looking statements made by Doubleview Gold’s CEO, which I believe offer insight into what lies ahead.
Next Doubleview Gold Article is Expected to be Significant
Around three months ago, I began working on an article that I think could be one of T$R’s most enlightening reports on Doubleview Gold, assuming my initial calculations are accurate. As soon as the maiden MRE is published, I will complete the article promptly and release it immediately.
Given the significance of the report’s conclusion, it will initially only be accessible to T$R members, so if you are not already a member, I suggest subscribing to ensure instant access upon its release. Best of all, membership is free!
Additional Supplementary Info
For additional supplementary info on topics discussed in this article, please see the following links:
- Doubleview Gold – A Possible Game-Changing Target Hasn’t Been Drilled Yet!
- Doubleview Gold – Attractive to a big Industry Name
- Doubleview Gold – On the Path Towards Becoming the Most Valuable & Most Desirable Deposit in Canada & NA
- Doubleview Gold’s Potential After it Attracts the Market’s Attention – Warning to “FLIPPING” Shareholders
- Doubleview Gold – The Gigantic Scandium Green Energy Transition Opportunity
- Doubleview Gold – Tracking Scandium – On the Path to the Largest Scandium Deposit with the Most Unique, Most Desirable & Lowest-Cost Extraction Process in the World!
- Doubleview Gold – Although the Market Ignores the Clues, Major Mining Companies Are Likely Watching Very Closely! Opinion on Recent Assays
Possible Clues Based on Forward-Looking Quotes & Statements
In case you’re reading this well after it was released, the updated list can be found on this page: Doubleview Gold Catalysts
As a reminder, here are some important forward-looking quotes/statements from Doubleview Gold’s CEO which help provide possible clues (refer to Doubeview Gold’s disclaimer):
- “Things are happening behind the scenes,” teased Farshad Shirvani, president and CEO of Doubleview Gold Corp. (TSX-V: DBG, GER: A1WO38, OTC: DBLVF), which is set to announce its first resource that includes scandium.” – quote from Resource World article about PDAC released on 11 March, 2024 (link)
- Farshad Shirvani said “Potentially one of the largest critical metals deposits in North America” – Oct 2023 Link
- Farshad Shirvani said “Doubleview potentially has the largest Scandium deposit in the world with unsurpassable mineral recovery method and environmentally safe that comes with many other North American Critical Metals, Copper, Cobalt and plus Gold” – Oct 2023 Link
- Farshad Shirvani (CEO/President) said he is working on proving that Doubleview Gold potentially has the largest critical mineral discovery in Canada. If successful, he anticipates the governments of US and Canada will look at the company (both governments have been focusing on establishing a domestic critical metals supply chain for the Green Energy Transition) Link
- Farshad Shirvani (CEO/President) said the deposit could potentially be one of the most valuable deposits in Canada (read that again and think about what kind of valuation it would receive if this occurs) Link
- “Recovering scandium from tailings in addition to copper, cobalt and gold recovery in concentrates is significant as it potentially provides another commercially saleable product with limited additional costs” – CEO/President 24 Oct 22 NR (link)
- “We have the opportunity to have low-cost scandium in North America……very cost effective” & “we will have a report showing what the cost figure is to do this metallurgy, to show to the world that this is the cheapest way of producing scandium” – CEO/President Pre-PDAC Pres 03 March (video link)
- “It will be proven by the end of this year, all of a sudden to everyone, that this is the most unique deposit in the world…..I’m not saying in Canada or the United States….the most unique one in the world & you will see that how we’re going to expose it to the world to see it” (the maiden MRE was originally expected by the end of 2023 but it is now expected by the end of Q1’24) – CEO/President 27 March 2023 YouTube Video (link)