A recent article by Palisade research highlighted Triumph Gold Corp. Triumph Gold Corp. (TSXV:TIG, FRA:8N61, OTCMKTS:NFRGF).
From 2007 to 2009, Triumph Gold embarked on an aggressive exploration and drilling schedule – 124 diamond drill holes and 81 RAB holes for a total of 34,690 meters. John raised an additional C$10 million in 2008 and 2009.
Triumph Gold recently closed a C$1.75 million financing, with the funds to going toward Nucleus, and a follow-up program on Tinta, a high-grade polymetallic deposit. Tinta is at the south-end of Freegold and along the same strike as Rockhaven’s (TSX:RK, C$22 mkt cap) Klaza deposit. The incredible thing about Freegold Mountain is that it has all the signatures of Casino-like porphyry, but is larger and includes Kaminak-like epithermal models.
Furthermore, the beauty of Triumph’s holdings is that it is littered with several “peripheral” zones, including Tinta, Dart, and Goldy, that show excellent potential for smaller-scale, high-grade projects. These projects could be bootstrapped quickly through resource development and feasibility without impairing the major targets. Paul aims to explore Tinta, which will provide high-grade drill intercepts and earlier capital appreciation. This bootstrapping strategy has been employed by many successful junior miners: Target smaller-scale operations. Use cash flow towards developing the major-scale operations This minimizes future dilution and provides the maximum return for shareholders.
Moving forward, a lot of the risk has been mitigated by the existing resource Triumph already has. According to our analysis and after normalization, Triumph Gold is considerably undervalued compared to its peers on a dollar per ounce basis; the company currently trades at $4.63 per ounce versus an average of $30.00 per ounce.
Money talks. Palisade Global Investments has been the single largest buyer of Triumph shares in the past 12 months; we are also the largest funders, cutting $700,000 of checks into the company’s coffers since January, 2016. In fact, we now own roughly 19.7%, assuming exercise of our warrants.
Triumph Gold is sitting on over $1.3 million in cash. The burn rate is low. With the discovery of fresh targets and high-grade zones, a little money can unlock a lot of value. The 2017 exploration season may prove monumental for Triumph shareholders.