Australian (ASX) Stock Market Forum

SGD - Snowline Gold Corp. (TSX-V)

Jump to new
mullokintyre

mullokintyre

Joined
28 May 2020
Posts
7,405
Reactions
14,483
Last night I bought an entry into Snowline Gold, a Canadian Goldie on the TSX.
Its Valley deposit intial MRE has 4.5 mill OZ Indicated, and a further 3.26 million ounces inferred.
The Canadian fed government and local state governments have comitted CAD30 mill in infrastructure projects to cater for a new mine.
It has 7 other deposits in the region that will get drilling programs in the futrue.
BTL Finance has been spruiking its sizeable deposit and long term mining opportunity for some time.
I orignally had some orders in at 4.68 Canadian, but missed out.
It has since risen again to 6 bucks.
Given thatI see further weakness in the AUD, I bit the bullet and forked out 5.75 a share.
Will keep adding if it comes back down to or below this level.
Mick
 
6.64 CAD last night.
Doubt I will ever see that buy in price again.
Keep waiting for a pullback, I would like more, but not at any price.
mick
 
Hit 7.10 last night, been a very profitable investment on paper.
Have no idea how high it will go, but going to hang on for the ride.
Mick
 
BTL did a presentation on the weekend after the release of Snowline's latest drill results.
617 meteres at a tad under 1.7g/ton from less than 3 meteres depth will produce very little overburden to be shifted before the money rolls in.
Hus opinion is that a very good deposit has got better, and that the mainstream is staring to take notice, given the increases in Volume.
Below is the visual representation of just how profitable this deposit will be .
The pink bits at greater than 2.0 ng/ton shows that it will be chucking out money from day one.
The outlying areas below the open pit delineation are perfect for heap leach development some years down the track.

1741572195832.png


Its a long life , geologically easily accessible high grade mine.
When the MRE update comes out in a month or two, I would expect another kick along, especially if gold is continuing its upward momentum.
If they manage to massage it into 10 million oz , it will push it into the big boy leagues.
They are also planning a PFS this year.
Up another 7% on Friday night sitting at CAD7.63 with an intrady high of CAD7.92
There is no doubt it has broken out of its trading range.
Mick
1741572948676.png
 
Snowline topped 8.20 on Wednesday and hovered around that mark since.
Pondering whether this is a short term rest, or a temporary top out.
a 30% increase in a month is not to be sneezed at.
But then longer term there is so much more value in it.
Decisions, decisions.
Mick
 
mullokintyre said:
Snowline topped 8.20 on Wednesday and hovered around that mark since.
Pondering whether this is a short term rest, or a temporary top out.
a 30% increase in a month is not to be sneezed at.
But then longer term there is so much more value in it.
Decisions, decisions.
Mick
Click to expand...

Been a great run. Looks like an amazing project. MC must be well over a billion now?
 
Snowline released and updated MRE last Friday that brought gold in ground to 8.8 million ounces, a 90% increase on the previous MRE, but at a lower overall grade.
Initially the market reacted negatively, as most expected the total to be closer to 10million ounces, and the SP dropped a chunk.
The good part was that 80% of this total was in the measured and indicated level rather than inferred.
The increased certainty of the geology and expected mine layout was far more important to me than the total gold and the lower grade was most likely due to the grades dropping off at the bottom and edges of the open pit, plus lowering the cutoff grade from 0.4 G/T to 0.3 G/T.
The big grades are near surface and initial mining will be highly lucrative.
They said in the release that a PEA will be finalised in the next few weeks which may reverse that negative sentiment.
I took the opportunity of the negative market sentiment to add further shares in SGD.
Mick
 
PEA (preliminary Economic Assessment) came out as scheduled.
Stunning figuees, half a mill ounces P.A. at an AISC of USD569/oz for the first 5 years.
Should bring in heaps of cash at those figures.
Some may be scared off by the 1.7 bill capex, but thes are the figures for most new mines these days.
Will be more than happy to keep holding, and add o any weakness.
1750755696431.png


Mick
 
mullokintyre said:
PEA (preliminary Economic Assessment) came out as scheduled.
Stunning figuees, half a mill ounces P.A. at an AISC of USD569/oz for the first 5 years.
Should bring in heaps of cash at those figures.
Some may be scared off by the 1.7 bill capex, but thes are the figures for most new mines these days.
Will be more than happy to keep holding, and add o any weakness.
View attachment 202278

Mick
Click to expand...

I'm not sure how they can get the Capex for this. Maybe B2 will take them out.
 
Top