FOR ENTERTAINMENT ONLY
Last Updated- October 19, 2023 (no change to the content – please note this article was written before the Ottawa River project JV was terminated. When reading this ensure to ignore everything about the Ottawa River Project). Also, the company did a 10:1 share consolidation since this was released.
ESGold
~$13M Mkt Cap Junior with Est $400M (min) Pre-Tax Cash Flow in the First 8.3 Years
Please note that I have written 4 extensive research reports on ESGold. This post supplements & further builds on what I have already published so most of the important aspects of the company are not repeated. If you’re not familiar with my previous reports, it is crucial that one reads them to better understand the potential of this outstanding investment opportunity.
There is also a dedicated & up-to-date research page which allows one to easily do due diligence on the company.
For FREE access to all the ESGold content, please see the bottom of this page for subscription info.
About ESGold
ESGold Corp. is a Canadian junior mining stock that is an environmentally focused resource exploration and processing company. It has a 100% ownership in the Montauban property which is fully permitted to start the production of gold and silver from tailings before the end of 2023. It also owns a 50% interest in the Ottawa River Project which could potentially be the most unique and largest precious metals treasure on Earth.
ESGold Trading Symbols
Canada (CSE) – “ESAU”
USA (OTC – Pinksheets but expected to transition to the OTCQB – “SEKZF”**
**In the USA, there isn’t much liquidity due to it trading on the Pinksheets but it has applied to be on the OTCQB and expects to soon trade on it. Once it trades on the OTCQB, it will greatly improve the liquidity of the market in the USA.
Germany (FSE) – “N4UP”
“BLUE SKY” Potential
Montauban
Montauban Historical Mining Background
The Montauban deposit was discovered in 1910 and was mined by many different mining companies for base metals between 1910 and 1966. A total of five operators mined the property from 1910 to 1990.
During the course of production, 5 historical tailings sites were abandoned at the property.
At current precious metal prices, these tailings contain very economic amounts of recoverable gold and silver.
Historical Mining/Exploration Focused on Base Metals
The Potential for Gold was Ignored
Since the Montauban was a base metals discovery and was mined for base metals from 1910 to 1966, in-depth review during the 2014 NI 43-101 Technical Report indicates that gold was not assayed in the drill core on specific sections that should have been gold bearing alterations.
The 2014 NI 43-101 Technical Report states:
“InnovExplo noted that gold was not systematically assayed in DDHs drilled thorough the walls of the massive sulphide zones in the Montauban. The Montauban Zone was mined before 1954, and at that time, many sections of core were not assayed for gold despite the presence of typical alteration.”
InnovExplo also shows proof by providing a log of unassayed diamond drill core that demonstrated favourable alteration for gold mineralization and contained sulphide mineralization which made it likely to contain gold mineralization but it was logged and never assayed.
InnovExplo also states in the 2014 NI 43-101 Technical Report:
“This property hosts the Montauban Zn-Pb-Au-Ag- deposit, which was mined mainly for based metals from 1910 to 1966 and for precious metals from 1983 to 1990. The potential for precious metal deposits near the historical deposit was not adequately assessed during the base metal production phases.”
During the Montauban’s historical mining, only 1 operator focused on precious metals. From 1983 to 1990, Muscocho mined several gold bearing veins (produced 813,632 metric tonnes grading 3.54 g/t gold and 12.36 g/t for a total of 92,553 oz gold and 323,376 oz silver).
Potential of Previously Mined Veins
Based on the historical mining techniques at the time, the old timers simply followed the veins underground and visually mined them.
Due to the much lower metal prices and the hard manual labour involved, the old timers mainly only visually mined the higher-grade veins and ignored the less economical smaller veins. At today’s much higher metal prices and with current mining techniques, they’re very economical and much easier to mine.
GEMS Database Review
2014 Technical Report
The Montauban property was also not mined/explored very deep. It was only mined down to about 275m which is literally just scratching the surface of a VMS system!
Due to the characteristics of a VMS system, there is probably a lot more mineralization at depth to be found.
Exploration targets based on 2 historical databases using GEMS software
From the 2014 NI-43-101 Technical Review:
“InnovExplo’s preliminary review of the GEMS databases indicates that additional mineralization may be present along the lateral and depth extensions of the A and E zones. There is also good potential for new gold mineralization in the northern extension (Montauban Zone) of the Montauban Horizon, where historical holes encountered mineralization but were not assayed for gold. Figure 9.5 presents the vertical projection of exploration targets identified on the Montauban Horizon.”
The 2015 “Treasure Map”
In 2015, DNA Canada (a private company and formerly known as DNA Precious Metals – previous owner of the Montauban) completed a 755.7 linear km helicopterborne electromagnetic (VTEM) geophysical survey.
From the 2014 NI 43-101 Technical Report:
“In 2015, following the DNA airborne geophysical survey, Boivin (2015) carried out further detailed the processing of the magnetic and electromagnetic data consisting of an unconstrained inversion to generate a 3D model of magnetic susceptibility.”
“The profiles of the electromagnetic data were analyzed along the flight lines in order to locate specific electromagnetic anomalies. Anomalies caused by cultural phenomena (road, power line, etc.) were first identified and removed. In a second step, each anomaly interpreted as being caused by a source in the rock mass was described and characterized by the number of anomalous channels and the time constant of the anomaly. Finally, the most interesting anomalies were grouped into twenty-one (21) VTEM targets ranked in decreasing order of interest (Figure 6.3).”
Recently Acquired Mining Claims
08 March, 2023- ESGold announced it acquired 25 new mining claims. Interestingly, some of the VTEM targets that weren’t on ESGold’s property are now on the newly acquired claims!
It now has more VTEM targets to drill and possibly more profitable ore to process at the mill.
Historical “Treasure Map”
Until very recently and under the new management, this is the first time that ESGold made any references to the historical data.
02 March, 2023 news release- ESGold said the following:
“The Property also hosts an historical underground hard-rock resource prepared by Mr. J. March and in 2003, which is not considered current by the Company. The 2003 technical report describes two surface blocks: one identified as the south block with 114,473 tons at 6.1 g/t Au and 94 g/t Ag — equivalent to 22,281 ounces of gold and 347,086 ounces of silver — and a north block with 274,500 tons grading 2.8 g/t Au and 15.0 g/t Ag — corresponding to 24,917 ounces of gold and 133,912 ounces of silver.”
Luckily, the previous owners of the Montauban revealed a lot more on the property’s potential historical resources because it helps understand what the likely extent of the historical hard rock resource potential is at the property!
In 2014, Goldman Small Cap Research released a report about the project when it was in the hands of its predecessor (DNA Precious Metals). It makes reference to the north & south blocks that ESgold mentioned in its news release which were from a 2003 Technical Report (due to the time period it is not available on the internet). Interestingly, there’s more historical data/resources than just the north and south blocks.
The map shows the following zones, tonnage & grades:
Golden Goose = 693,500 Mt grading 3.44 g/t gold & 14.32 g/t silver
North Zone = 254,310 Mt grading 3.0 g/t gold & 20.6 g/t silver
South Zone & Marcore Zone (combined) = 356,000 Mt grading 4.07 g/t gold & 128.0 g/t silver
St Thomas showings (I believe these are channel samples).
2m grading 2.8 g.t gold
2m grading 19.1 g/t gold
2m grading 4.08 g/t gold
In 1945, a grab sample with visible gold at St Thomas yielded 32.64 g/t Au and 7.82 g/t Ag.
There’s been very limited drilling/exploration at the property in the last few decades.
According to the technical reports, the last time the Montauban was in production was in 1990 so the historical data/resources mentioned in 2014 should still be there.
It is important to note that the tonnage and grades for the north block/zone were a little lower in ESGold’s news release.
ESGold (2023) – north block = 274,500 tons grading 2.8 g/t gold & 15.0 g/t silver representing 24,917 ounces of gold & 133,912 ounces of silver
DNA Precious Metals (2014) – north zone = 254,310 tons grading 3.0 g/t gold & 20.6 g/t silver
Select Highlights – 2023 PEA
5 OF 6 TAILINGS
02 March, 2023- ESGold released a Preliminary Economic Assessment (PEA). Although at the time of writing it wasn’t yet available on SEDAR, the news release provides some on the main highlights.
In spite of having 6 historical tailings (1 was recently acquired and is located outside their property) to process once the mill is operational, only 5 tailings were included in the PEA. Processing 5 of the 6 historical tailings will provide the following:
- Payback of less than 2 years;
- 4 years of mine life with 923,000 tons of tailings at 0.41 g/t gold & 33.34 g/t silver & 57,187 tons of mica;
- Revenue of C$62.2 million;
- Pre-tax cash flow of C$35.1 million
- Operation cost per ton of tailings C$29.40
- Total production of 12,000 oz gold & 989,450 oz silver
- Assumed gold price US$1750/Oz, silver price US$21/Oz & mica concentrate price US$200/ton with a CAD/USD exchange rate of 1.35
The important thing to note is the tailings are very economical to process and they quickly pay off the project’s low capital expenditures. Putting the mill into production to process the tailings simply opens the door to the more lucrative higher-grade hard rock ore potential of the property.
Potential Ounces
PEA & Historical Data/Resource
Potential Ounces – Historical Data/Resource
Golden Goose = 76,700.05 oz gold & 319,286.2 oz silver
North Zone (using ESGold’s numbers)= 24,917 oz gold & 133,912 oz silver
South Zone & Marcore Zone (combined) = 46,583.82 oz gold & 1,465,044 oz silver
Total potential from the historical data/resources = 148,200.87 oz gold & 1,918,242.38 oz silver
PEA (5 OF 6 Tailings)
12,000 oz gold & 989,450 oz silver
Potential Revenue
Tailings (PEA) & Potential Hard Rock (Historical Resource)
Historical Data/Resource – Gold & Silver (no Mica)
Total potential revenue based on what is known (PEA) and what is likely possible based on historical data/resources are as follows (uses 01 April 2023 values – price of gold US$1968/oz, silver US$24.04, CAD:USD exchange rate of 1.3509 & operating costs as per the PEA):
Potential Revenue – 5 of 6 Tailings (Gold & Silver Only – no Mica)
Revenue potential = C$65.5 million
Pre-tax cash flow = C$37.3 million
Potential Revenue – Potential Hard Rock Historical Data/Resource
Revenue potential = ~C$456.3 million
Pre-tax cash flow = ~C$358.3 million
Total Potential Revenue – 5 of 6 Tailings & Potential Hard Rock Histroical Data/Recource
Revenue potential = ~C$520.8 million
Pre-tax cash flow = ~C$396.7 million
Estimated Time to Process – 5 of 6 Tailings & Potential Hard Rock Historical Data/Resource
The estimated time to process the total tonnage of the 5 of 6 tailings and the potential hard rock historical data/resource is estimated to be (using 270/year at 1000 tons/day which is the current capacity of the mill):
~8.3 years**
**This is using the current mill configuration of 1000 tons/day, The company has indicated that it is easily possible to expand the mill production capacity to 2000 tons/day with additional permits.
Additional Potential Revenue
Montauban
Mica
The 5 of 6 tailing in the PEA contain 57,187 Mt of Mica. The rest of the hard rock ore is said to also contain mica as well so there is a lot of it available.
Mica Revenue Option #1 – Sold as is with no Additional Processing
Mica is said to be worth about U$528 according to Chinese prices in Sept 2022 so it could be sold as is with no additional value added processing.
Mica Revenue Option #2 – Mica Foil Sheets for EV Lithium Batteries
20 March, 2023- ESGold announced that it was proceeding with “an analysis to determine the costs, equipment, facilities, and processes required to separate and categorize the silicate minerals (Mica) concentrates available at Montauban. The analysis will also focus on the requirements and potential value-added benefits of transforming the Mica concentrate into Mica foil sheets, a product presently in high demand in the lithium battery industry. Depending on the classification and types of Mica concentrate, wholesale values vary from between $150USD to over $2,000USD per tonne.”
Mica Revenue Option #3 – Polymer Construction Material
15 December 2022- ESGold entered in a Joint Venture to produce ESG friendly construction materials from its tailings at the Montauban. The JV terms provide 49% of the net earning to its JV partner which owns the proprietary process. “The new Joint Venture will use an organic Polymer that will bond the processed tailings into building materials with shapes including, Bricks, Cinder Blocks, Paving Stones, Patio Tiles, Parking Columns and Highway Jersey Barriers used to define traffic lanes. The Polymer can also be used to easily create temporary roads replacing the need for toxic asphalt and concrete.”
Other Exploration Targets which could Increase Revenue
Not included are the many VTEM identified targets from 2015 & the vertical depth expansion targets from the GEMs review in 2014 (using 2 historical databases) which could drastically increase the amount of economic ore to process.
Carbon Credits (Carbon Emission Offset)
Polymer Blocks
One of the ESGold directors is the co-founder and Chief Business Officer of the CarbonEthic Group – a Canadian carbon offsets manufacturer that delivers products at scale for worldwide emitters’ requirements. During the 2022 AGM, the director answered my question about the carbon credit potential. Although the carbon credit industry is still in its infancy, he believes ESGold has the potential to generate some carbon credits. If so, the credits could be used to offset it’s own carbon emission costs and if it generates more than it requires due to its ESG focused business, the remainder could be sold to generate additional revenue in the future.
“ESGold’s new process will create needed building materials for the Quebec construction industry that are superior in strength, easier to engineer and create zero carbon emissions” – 15 December 2022 News Release
Ottawa River Project – “Royal Canadian Mint’s Lost Gold”
The Ottawa River Project has the possibility to generate some of the highest profit margin ore on the planet. On it’s first sampling program of different targets in July 2022, it discovered gold values ranging up to 1.8272 g/t in 100% of the 32 samples analyzed at the lab. In my opinion, this was enough to validate the Royal Canadian Mint’s lost gold theory from it’s inefficient early gold refining years. Based on lost gold estimates during the years the Royal Canadian Mint dumped liquid waste from its gold refinery directly into the Ottawa River, it could contain between 4 – 6 millions of gold ounces. Since the amount of industrial slag is estimated to only be approx. 50,000 tons, it could easily be transported by truck and processed at the Montauban mill. If successful in finding sufficient economic ore to process, this would instantly generate tremendous profits. 13 Oct, 2022- news release titled: Bathymetric Surveys Show Significant Extraction Potential in ESGold’s Ottawa River Project:
“Since the last sampling program, the company now has a very detailed bathymetric study which shows a great target of industrial slag to sample”
The company plans to do a follow-on sampling program in the summer of 2023. It is important to note that the previous company that had a JV on it assayed several samples of over 5,000 g/t gold before it “lost” it’s joint venture. If the full potential of the Ottawa River Project is realized with the best case scenario, it would be the equivalent to a winning lottery ticket for the company and its current shareholders (assuming they hold enough shares with a low average cost).
I extensively covered this project and its potential in 2 in-depth research reports titled:
“The Lost Gold in the Ottawa River from the Royal Canadian Mint Could be One of the Biggest Mining Stories of the Century”
“The Theory of the Lost Gold from the Royal Canadian Mint has been Confirmed – the Market is Blind – Interpretation of the Sampling Program”
Additional Projects
Additional producing projects would drastically increase revenue.
Why is ESGold’s Valuation Significantly lower?
Although I’m not familiar enough with DNA Precious Metals to comment on its reputation, I’m familiar with Secova Metal’s (ESGold’s previous name) history based on what I found online and what I’ve heard from long-term shareholders. Like many junior mining companies, Secova Metals had a bad reputation of being a dilution machine and it issued large quantities of very low prices shares. It was also halted for a period of about 2 years due for it’s inability to produce a financial statement in 2019 in a timely manner. From what I’ve heard, the previous CEO was very disliked by many shareholders and an unnecessary prolonged halt would definitely do more than that. There was a lot of disgruntled shareholders which could be from the never ending halt which held their investment in the company as ransom for the exchange of delinquent financial statement.
ESGold vs Secova Metals
The following are recent management changes:
- 06 October, 2021- Secova’s cease trade order that started on 30 December, 2019 ended
- 29 April, 2022- New interim CEO & outgoing CEO became President
- 02 June 2022- Current CEO appointed & interim CEO became Chief Operating Officer
- 09 June 2022- New ESG focused director appointed
- 16 June 2022- 2 new advisors appointed to the Advisory Board
- 11 July 2022- Name changed to ESGold Corp
- 05 August, 2022- CEO appointed to the Board of Directors
- 14 September, 2022- New director appointed
- 19 January, 2023 – Another new addition to the Advisory Board
- 08 March, 2023- Board of Directors abolished the President’s position
As one can see from the above, ESGold is basically a completely new company with newly appointed people that have been selected to drive the Montauban into production and execute its new aggressive business strategy. Although it is considered to be ridiculously undervalued compared to DNA Precious Metals and it most likely still has the “Secova” discount applied to it, I believe this simply creates an outstanding temporary buying opportunity which could very soon come to an end.
The Big Pending Catalyst
Production Financing
The biggest pending catalyst which will allow ESGold to fully unlock the value of the Montauban property is the production financing. As per the PEA, the capital costs required to put the Montauban into production is ~C$16 million (includes an addition 30% contingency cost). In addition to the required capital costs, a working capital of ~C$1 761 200 is also required.
The company is currently looking at financing options and it hopes to find the best financing possible (i.e. a non-dilutive financing).
Here is a list of financing options that I believe are possible:
Financing Option #1 – Bank Loan
The company has good tangible assets like the building and it equipment which could help it get a business loan. In addition, it has a good positive PEA to show that it will be able to quickly generate revenue and reimburse the loan.
Financing Option #2 – Government Grant/Financing
Since the Montauban Property was an abandoned mine that belonged to the Quebec Government which removes the environmental liability it had on it, there are precedents where the Quebec Government has offered financial support to such sites.
Financing Option #3 – Selling Gold in Advance of Production
There are specialized institutions that provide funding and take reimbursement in the form of precious metals. Essentially, it’s simply selling a portion of its first dore bars to someone at a discounted price as loan repayment.
Financing Option #4 – Sell an Interest to a Strategic Investor
I believe this wouldn’t happen unless all the above weren’t successful. Although it’s not dilutive like a financing through the issuance of shares (option #5), it would essentially be giving someone an interest of the project for pennies on the dollar due to the low market cap of the company.
Financing Option #5 – Financing Through the Issuance of Shares
I know for a fact that the company does NOT want to use this option unless it is the only option available. Although dilution that puts the Montauban into production is better than no dilution with no production, I still dread the thought of this happening.
Likelihood of Successful Financing
I believe ESGold’s management will be successful in obtaining the required financing using a combination of non-dilutive options. The company is currently working hard in obtaining the required financing and hopes that it will soon be obtained. Once obtained, I think it will be a game changer and the stock price will finally start to move to a proper valuation based on what lies ahead.
The Domino Effect
Huge Exploration Growth Once Production Starts
Additional Projects – Potentially Larger & Better
In the province of Quebec, there are over 250 abandoned mining projects which belong to the government (there are also many in the neighboring province on Ontario and throughout Canada). In the province of Quebec, it is said that some are as good as the Montauban and some that are even better than it. Once ESGold has proven that it’s successful on its first project, the door will be wide open for the acquisition of larger, more profitable projects. It is important to note that ESGold’s Government Relations person was DNA Precious Metal’s CEO since inception and for most of the company’s existence so it has the right person on its team to quickly acquire more projects. DNA Precious Metals is the company that acquired the Montauban from the government and advanced it to a near-term production stage (build the plant, did the VTEM, obtained all the permits, etc.) until ESGold acquired it. Even though the current prices of precious metals make these projects very lucrative and more so as prices go higher, ESGold’s predecessor seems to be the only publicly traded company to have acquired tailings from the Quebec Government and advanced it to near-term production. This shows the Quebec Government does not easily give these projects away and they’re difficult to acquire. Other tailings and/or economic ore from other regional sites could easily be transported for processing by truck or by rail which is only ~5kms away. The Montauban mill is an extremely strategic asset. If interested, I recently wrote a 15+ page report about the mill being a game changer for the company. As part of its aggressive business growth strategy, the company intends on acquiring more low capital cost and highly profitable projects similar to and better than the Montauban.
Systematic Exploration of the Montauban
Once in production, ESGold will have the revenue to self-fund a thorough systematic exploration of the property which still holds a lot of “blue-sky potential” as previously mentioned. A GEMs software diagram in the 2014 Technical Report shows all the historical drilling/mining was mainly concentrated in a small area. There remains a significant portion of the property that has yet to be explored. One of the characteristics of a VMS system is many smaller clusters of high-grade deposits. With the recent VTEM targets, the historical data and the historical resources providing a great treasure map to know where to drill, the odds of quickly finding additional economic ore to mine are outstanding. The higher the ore grade being processed, the higher revenue. ESGold currently owns 96 mining claims totaling approximately 3,526.97 hectares (this is the equivalent to 8,715.33 acres, 35.3 square kms or 13.6 square miles) at its Montauban property.
Other Potential Financial Benefits
There’s an economic incentive from the Quebec Government to help fund certain businesses located in regions that are economically challenged.
Since the Montauban property is located in a very economically challenged region, will employ about 30 people and it’s an environmentally focused company that will neutralize toxic tailings which is said to be have caused livestock deaths (due to the contamination of streams) in the immediate region, I believe the odds of receiving this financial incentive are extremely high.
If obtained, such a government grant would subsidize a significant portion of the salaries and training over a certain period of time. This would further improve the economics of the project in the early years of production which isn’t accounted for in the PEA.
Advantages of ESGold’s Business Model
In General
Compared to traditional junior exploration companies or typical mining companies:
- ESG focused with potential to generate carbon credits (AKA carbon offsets)
- Lower capital costs to put into production
- Quicker acquisition to production timeline
- Quicker revenue generation
- Quick payback
- Faster exponential growth via new projects
- Lower operating costs
- Higher profit margins
- Multiple revenue streams
- Economies of scale – 1 mill can easily logistically process material from different regional projects
- Less risk of not receiving environmental permits
- Less risk of not receiving production permits
- Lower risk to operations due to it’s mission to decontaminate toxic sites for the government & local communities
- Abundance of readily available abandoned mining projects that belong to provincial governments
- First mover advantage
- Possibility of becoming a market leader in a specialized mining sector
My Opinion on Management
Compared to peers, some companies trade for a discount and some companies trade for premiums with similar projects.
The main difference between the discounted company and one with a premium is due to management taking the right steps to unlock value from its assets and management’s ability to properly tell the story or properly get the story told.
ESGold’s new management has been very communicative about their plan and intention of creating long-term intrinsic value for shareholders. Management has said that they’re “dedicated to the path of least resistance to creating value for shareholders.” (quote from management)
I have been heavily invested in this junior exploration sector since 1997 and have seen the good and bad it has to offer.
So far, I’ve been extremely impressed with management’s performance and believe it has an outstanding team that is committed to creating shareholder value and will deliver on what they intend to do. Their deliverables (corporate presentation, news releases, etc.) have been very detailed and some of the best I’ve seen in the industry. If a company’s acts like one with a much larger market cap, it’s very likely that it will attain much higher valuations.
Pending & Potential Future Catalysts
The list below will not be updated – please refer to this dedicated catalysts tracker page:
https://member.tsr-d4.com/tracking-catalysts-esgold-pending-potential-catalysts/
The following is a list of pending and potential catalysts for higher share prices (not in chronological order):
- Ottawa River Project assays (sampling planned for summer 2023)
- Drilling/defining the near-surface historical resource at Montauban (anticipated summer 2023)
- Updated NI 43-101 resource estimate to include near-surface historical resources once drilled
- Updated PEA to include near-surface historical resources once drilled
- Securing the required financing to complete the processing plant (soon)
- New discoveries at Montauban & expansion of the “minable” resource
- Polymer construction material (hopefully news on how profitable this could be)
- Mica – if it can be processed and used for EV batteries (currently being analyzed)
- Institutional buying
- Analyst coverage
- Commencement of production/start of revenue (expected late 2023)
- Additional reclamation/restoration projects
- Increase in the price of gold and/or silver
- Mining sector turns bullish
- Paying dividends once cash flow positive & able to do so
Conclusion
ESGold has the first mover advantage in this highly lucrative and specialized sector in the province of Quebec. If it is successful with the Montauban, I believe it will easily become the market leader as the door will be wide open to easily replicate the Montauban’s success with even better projects from the provincial government.
In terms of maintaining that market leader advantage once attained, it should easily be able to maintain it since it is very difficult for new companies wanting to enter this sector to acquire these abandoned projects especially in the province of Quebec. Since ESGold seems to be the only example of this business strategy in Canada, the issues in acquiring these abandoned projects in the rest of Canada are probably also applicable.
What I call the “mother” of all resource bull markets is said to be underway right now and it could last an extensive amount of time due to the state of world economies, the reckless spending by governments and the massive pandemic money printing in the last few years.
With the price of gold hovering just below its historical high and the bright outlook of precious metal prices, much higher prices are expected going forward. Once the US Federal Reserve starts to reduce interest rates to prevent the imminent recession, precious metal prices will likely break out in a very big way which could happen as early as this summer/fall.
Higher precious metal prices affects ESGold in 2 significant ways. Firstly, it would drastically increase ESGold’s profits thus justifying a much higher market cap. Secondly, it would attract huge money to flow to the sector which adds fuel to the fire and creates a bull market bubble. Junior mining companies have historically provided the greatest life changing returns in resource bull markets.
ESGold has the right recipe for gigantic success and its timing couldn’t be any better to become a success story like the only other comparable company that started in the tailings business (GoGold Resources started off as a silver tailings producer in Mexico and attained a market cap of ~C$1.2 billion in 2022 which was a poor market for mining companies. It only has 1 tailings site in production and also has an advanced stage exploration project).
With a current market cap of only ~C$13.8 million and outstanding odds of favourably securing the required production financing, I believe the upside potential simply on the Montaban’s success and what it would lead to in the future could be life changing to patient shareholders if it is successful in executing it’s aggressive business growth in a precious metals bull market. Since the company’s tangible assets are greater than its current market cap, I believe there’s virtually little to no downside.
What would happen if the Ottawa River Project contains what experts have been saying for a long time and ESGold proves to the world that the Royal Canadian Mint’s lost gold theory is correct in a precious metals bull market? If it does, this unique story and it being the highest profit margin discovery on the planet would instantly attract the market’s attention. Although ESGold’s success does not depend on the Ottawa River Project, its success in a precious bull market could be the equivalent of a winning lottery ticket from this current stock price.
I believe ESGold is one of the best investment opportunities in the junior mining sector. I have strong conviction that it will be extremely successful and will be a life changing investment for some shareholders (even more so if a precious metals bull market occurs).
ESGold is one of my only two very strategic core positions for many more reasons than what was discussed above. My core holdings are ones that have outstanding odds of becoming life changing investments for me, are ones that I have conviction in and consequently, I own significant positions in due to the amount of research I’ve done on them.
If interested knowing the other reasons why I invested in ESGold, want access to the dedicate research page or want to better understand why it is one of my core holdings, please see the bottom for more information on how to receive FREE access.
