1911 Gold (AUMB, TSX-V) Key Milestones Achieved In 2019:

Dec 21

Key Milestones Achieved In 2019:

  • Operated True North Mill at an average of 1,212 tpd, produced 5,541 ounces Gold (a few months of seasonal production not included), and increased cash position to $8.1 million;
  • Received drill permits and commenced a 10,000+ m program in November.

Elephant Hunting: The elephant in the room when talking 1911 Gold is their marketing, branding, and promotional efforts, which are nonexistent.  This company is overlooked and under-loved by the market because very few people know about it.  Trading activity in AUMB is very low, as is the market cap (currently $8.8 million with 37 million shares out.).

In my view AUMB is an absolute steal under 30 cents per share, but buyers have to be patient and just accumulate little bits at a time (in anticipation that substantial value should eventually be recognized).

1911 Gold assembled a 54,000 hectare land package and 80 km of favorable strike length, the largest ever held on the Rice Lake greenstone belt.  Little to no modern day exploration has been done outside of the mine area since it was discovered in the year 1911 (hence the name 1911 Gold).  Sporadic work done to date focused on historical showings, so it was narrow in scope.  1911 is undertaking the first-ever systematic regional-scale exploration program in this district.  High-resolution aeromagnetic coverage existed, but was fragmented (like the land package), and it had never been unified into one digital compilation – until now.

It’s The Same Geological Terrain As Red Lake

Rice Lake is located 80 km west of Red Lake – both greenstone belts are hosted in the same geological terrain.  The Uchi Domain is the largest of cratonic masses within the western Superior Province and has a total metal endowment of +40 million ounces.

Rice Lake and Red Lake sit along the same major deep seated crustal break.  Rice Lake contains practically the same rocks found within the Red Lake belt, plus other types.  Important similarities to Red Lake makes Rice Lake prime hunting ground for finding large high-grade deposits.

Importantly, as it concerns 1911 potentially making a new discovery, Rice Lake has received way less attention.  Way less.  Exploration spend at Red Lake is estimated to be 50 x to 100 x more than what’s been spent exploring Rice Lake.

The general perception is that True North is a “faulty asset”.  Given its history of bankruptcy and a few failed attempts at mining I can understand why people would think that, but 1911 Gold’s Rice Lake Project isn’t a lemon.  And 1911 Gold isn’t going to make the same mistake its predecessors made – mining.

Both San Gold and Klondex pushed the mill too hard, which led to lower grades.  Lower than what the resource model said they were supposed to be.  Simply put, they didn’t make the grade because they were chasing tonnage.  Approximately 15% of the Gold ended up in the tailings pond, and 1911 Gold is reprocessing that material now.

Before rushing into mining they’ll be looking to make new discoveries elsewhere within the district. With more than $8 million in the treasury 1911 is fully-funded for 20,000+ m of drilling during 2020.  Dr. Scott Anderson, “the guru of Rice Lake geology”, is overseeing the drill program and picking the targets, so I like their odds of success.

Before joining 1911 Gold as VP Exploration, Dr. Anderson was the Chief Geologist of Precambrian Geoscience with the Manitoba Geological Survey.  In his 17 years with the survey, Dr. Anderson’s main research focus was to document the stratigraphic and structural controls on orogenic Gold mineralization in the Archean Rice Lake greenstone belt.  This included a definitive study of the Rice Lake (Bissett) mining camp.

“Nobody understands this belt and has spent more time looking at the big picture than I have,” Dr. Anderson told me during a recent conversation.

Compared to Red Lake, the Rice Lake belt really hasn’t had a fair shake.  From my research and discussions with Dr. Anderson I’ve concluded he’s probably the most qualified person in the world for this position – discovering a world class deposit within the Rice Lake belt.

You can watch Dr. Anderson deliver a highly technical presentation on “Orogenic Gold Deposits In The Rice Lake Belt” here.