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ML Gold Corp (TSXV:MLG) is a resource exploration company focused on the development of its flagship project, the Stars property in Northern British Columbia, Canada. ML Gold recently entered into an agreement for options to acquire up to an 80 percent interest in the copper-gold-silver-molybdenum property, which sits 30 kilometers away from the New Nadina Exploration (TSXV:NNA) Silver Queen project. Moving quickly in what they know to be a highly prospective property, ML Gold is kicking off their first phase of exploration on the Stars property in December 2017 with the goal of completing it by February 2018.
In addition to the Stars property, the company also holds four other properties across North America. This includes the Block 103 property in Eastern Quebec, which hosts an iron ore deposit of 7.2 billion tonnes with a grade of 29.2 percent total iron, considered to be the largest wholly owned iron deposit in the world.
The company also has a presence in Nevada through its Palmetto gold project, which hosts an underexplored deposit currently open in all directions. A maiden resource estimate released by ML Gold in 2017 outlined a resource of approximately 350,000 ounces of gold equivalent. The company’s North American portfolio is complemented by two other gold properties in British Columbia, the Pinnacle Reef and Aspen projects, which are both in early stages of exploration.
The company has a tightly held share structure, with 13 million shares held internally, and another 10 million to 15 million held by friends and partners. Among the company’s most significant shareholders sits Andy Bowering—the company’s CEO—who is one of the founders of Millennial Lithium. In ML Gold, he is supported by a management team with vast experience in developing exploration projects towards production.
“We are a proven explorer with an experienced management team that can make quick and concise decisions,” said ML Gold President Adrian Smith. “This allows us to be more agile than other explorers and makes us able to take advantage of the best opportunities as they present themselves.”
- Five properties in mining-friendly jurisdictions across North America
- Flagship Stars copper-gold-silver-molybdenum property in BC nearby renowned New Nadina Silver Queen prospect
- Historical results on Stars property include 142 meters of 0.25 percent copper and 0.56 percent copper at 110 meters
- Block 103 property hosts the world’s largest wholly owned iron deposit
- Recently completed $2.2 million in financing from non-brokered private placement
- Strong management team with noted experience developing projects through exploration
Flagship Property: Stars Project
The Stars project is a 2,136-hectare copper-gold-silver-molybdenum property located in Western British Columbia, Canada. Located 30 kilometers northwest of New Nadina Exploration Ltd’s Silver Queen project and 60 kilometers away from Goldcorp’s (TSX:G) past-producing Equity silver mine, the project is easily accessible by vehicles and is nearby a reliable source of green energy. Both the Silver Queen and Equity silver properties sit on the same mineralized trend that extends in the direction of the Stars property.
In November 2017, ML Gold signed two option agreements for options to acquire up to an 80 percent interest in the property from Divitiae Resources Ltd and Pacific Empire Minerals Corp.
“This was a unique opportunity to acquire a strong land position with significant copper – gold – silver mineralization on surface, which has never been tested to depth, in this emerging area play,” said ML Gold CEO Andy Bowering. “We are pleased to have a place in the recent resurgence of this significant mining camp.”
The Stars property was initially discovered in 1998, as part of the initial staking rush in the region. It was first owned by the Imperial Metals Corporation and were taken over by the Hunter Dickinson group in 2000. Over the course of historical exploration on the property, two primary mineralization zones have been identified: Zone A and Zone B.
Zone A shows a combination of chargeability, high magnetics, quartz monzonite stock and copper-gold-silver-molybdenum mineralization at surface. Zone B shows chargeability-resistivity high anomalies, anomalous copper-molybdenum soil geochemistry and quartz monzonite intrusive stock.
While outcrop exposure on the property is limited, reports indicate several occurrences of copper, gold and silver alongside the copper identified in historical drilling.
Under the ownership of Hunter Dickinson, the property saw an exploration program of geophysics across an area that measured four kilometers by three kilometers.
In 2001, Doublestar Resources Ltd (as part of a joint venture with Hunter Dickinson subsidiaries) conducted a nine-hole diamond drilling program in which they encountered 142 meters of 0.25 percent copper in one of their holes in Zone A. During the same program, they also intersected 0.56 percent copper at 110 meters in a hole in Zone B.
ML Gold began its first exploration program on the property in December 2017 focusing its exploration efforts in the two mineralized zones. Initial results from this program saw near-surface mineralization in three of the four drilled holes, including a 300-meter interval with visible chalcopyrite mineralization.
“We are extremely pleased with first four holes of the program, said Smith. “Hole four is the most impressive hole to date and there is no indication we have drilled within the best zone of this porphyry system yet.”
Alongside the company’s focus in the Stars property, ML Gold also has four other projects located across North America: the Block 103, Palmetto, Pinnacle Reef and Aspen properties.
The Block 103 project is a 7,275-hectare iron property located 30 kilometers northwest of Schefferville, a mining town in Quebec, Canada. It is also located on the same strike as the KeMag and LabMag magnetite deposits owned by Tata Steel (NSE:TATASTEEL) and New Millenium Iron (TSX:NML).
With the goal of defining the mineralization in its Greenbush zone, ML Gold conducted an exploration program on the property over the course of 2012. This included a 72-hole, 22,300-meter diamond drilling program and additional surface sampling. Results from this program showed intervals of up to 291 meters of 26.7 percent to 35.5 percent total iron. Additionally, metallurgical results indicated a magnetite recovery level of 93.7 percent and an iron concentrate grade of 70 percent.
In 2013, ML Gold released a NI 43-101 resource estimate that outlined a 7.2-billion-tonne deposit with a grade of 29.2 percent total iron.
In 2013, the company also released a preliminary economic assessment (PEA) for the property which showed robust project economics. These included a NPV (8 percent) of C$7.4 billion, an IRR of 19.3 percent and a 30 year mine life, based on one quarter of the outlined resource.
The Palmetto project is a 700-hectare high-grade gold-silver property located in the mining-friendly jurisdiction of Nevada’s Esmeralda County. The property sits within the prolific Walker Lane gold belt and 80 miles away from Kinross Gold Corp’s (TSX:K) 11.2 million-ounce Round Mountain gold mine. The property is supported by solid infrastructure and road access and hosts a prolific discovery zone that is open in all directions.
The Palmetto property historically hosted a mercury mine between 1928 and 1955. Gold mineralization was first discovered on the property in 1999 in a hole that intersected an average 0.33 oz/T over 275 feet. However, due to ownership conflicts, work on the property was halted before a resource estimate could be produced.
ML Gold fully acquired the property in 2016 and since that time the company has conducted an exploration program which it has used alongside historic data to develop a maiden NI 43-101 resource estimate. Results from drilling included 21.3 meters of 0.93 g/t gold, including 7.6 meters grading 2.26 g/t gold. Additionally, another hole ended in 6.1 meters of 1.82 g/t gold at 237 meters.
The report outlined a combined open-pit and underground inferred resource of 321,665 ounces of gold and 2.4 million ounces of silver for a total 352,475 ounces of gold equivalent.
Further exploration plans for the property include the continued development of a 3D deposit model, targeting new drilling areas, testing mineralized structures at depth and assessing the historic mercury mine for potential underlying gold-silver mineralization.
The Pinnacle Reef project is an early-stage gold porphyry property located within the prolific Quesnel Terrane in Central BC and 50 kilometers northwest of Centerra Gold’s (TSX:CGTO) 2.2 billion-pound copper and 5.7 million ounce gold Mount Milligan mine. The property is supported by road access at all times of the year and is nearby a ready source of hydroelectric power.
Historic drilling on the property included 94 meters of 0.34 g/t gold, 6 meters of 4.0 g/t gold and 187 meters of 0.05 percent copper. ML Gold has continued exploration on the property with a field survey over the course of 2017, the results of which are still pending. Additional exploration activities on the property could include drilling aimed at testing the gold system model and identifying target areas as well as reviewing drill assay data to create a vector model of the deposit.
The Aspen project is a gold-silver bulk tonnage target that sits 25 kilometers away from New Gold’s (TSX:NGD) 9.5 million-ounce Blackwater gold deposit. The property is also located on the border of the Tower Resources Ltd (TSXV:TWR) Nechako gold project, which they are currently drilling for potentially high-grade gold.
Historic drilling in nearby areas to the property have presented significant gold and copper intercepts on strikes trending toward it. Exploration plans for the Aspen property include IP geophysics and ground work to determine drill targets, drilling, the review of assay data and follow-up drilling.
Adrian Smith, PGeo, BSc—President and Director
Adrian Smith is a consulting geologist with nine years of experience working in the mining and exploration industries. He began working for exploration companies in 2007, and worked as an underground mine geologist in the Shasta gold-silver mine in Northern BC from 2008 until 2010. He then began work for North American Tungsten Corp at the Cantung mine where he was involved in successfully identifying, modeling, and producing ore in addition to known reserves. Since then he has taken his mining and exploration experience from underground and applied it to exploration projects across Canada. Currently, he sits on the board of Gorilla Minerals Corp and Natan Resources Ltd, and founded Divitiae Resources Ltd. He graduated from Simon Fraser University with a Bachelor of Science degree specializing in Geology, and has been a member of APEG BC since 2008.
Andrew W. Bowering, BA—CEO and Director
Andrew Bowering is a self-employed management consultant to public companies and has provided services in a variety of management and financial oversight roles. He has held senior executive positions and directorships in numerous public companies involved in mineral exploration in Canada, the United States, Mexico and China. He has in-depth knowledge of securities markets, regulatory affairs and investor/public relations. He has led several large acquisition programs in Northwest British Columbia, Alberta and Central Mexico. He obtained a Bachelor’s degree in Economics and Political Science, from the University of British Columbia in 1986.
Brian Morrison, BComm—CFO and Director
Brian Morrison received a Bachelor of Commerce degree from the University of Northern British Columbia in 2004 and completed the Canadian securities course in 2006. From January 2005 to May 2008, he was an account manager with Computershare Investor Services Inc, an international full-service financial services, corporate trust and stock transfer company. Since June 2008, he has been a self-employed consultant working in the area of public company administration. Morrison currently serves and has previously served as a director or as chief financial officer of various publicly traded issuers.
Simon Clarke has over 25 years of corporate finance and corporate development experience, mainly focused on resources and energy technology companies. He brings significant experience in building and growing businesses and implementing successful capital market strategies. He has served as a Director and Audit Committee Chair for a number of public and private companies. He qualified as a corporate and securities lawyer in 1990 and spent four years with the City of London law firm Simmons & Simmons, including two years seconded to the London Stock Exchange. From 1994 to 2000, he was an investment banker in London, first with West LB Panmure and, thereafter, with Williams de Broe Plc, focused on small-mid cap companies. Since moving to North America in 2000, he has held a number of senior management and board of director roles including with RailPower Technologies on the hybrid / energy storage side, Doublestar Resources and Argus Metals on the resources side.
Kosta Tsoutsis brings over 20 years of finance and capital market experience. He formerly worked as an investment advisor at Mackie Research, Jordan Capital Markets, and Canaccord Capital Corp. He has significant experience specializing in developing, restructuring and financing venture capital companies. He has directly raised over C$30 million in development and venture capital for public and private companies worldwide.