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Disclosure: North Peak Resources Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Price Performance (1-year)
The property hosts several historic mines (Diamond, Excelsior, Silver Conner, Deadbroke, and Metamoras). Two types of mineralization (carbonate replacement mineralization and Carlin) have been identified on the property, controlled by faulting similar to mineralized structures on other parts of the Eureka camp.
Nevada is the fourth largest gold producer in the world. Located in the southern portion of the Battle Mountain-Eureka trend, known for CRD and Carlin-type deposits
Carlin-type deposits typically contain high gold grades, while CRDs are typically found in clusters. Existing infrastructure in place including access to power, water, and underground development
Fully permitted: the project has a 10-year permit for surface exploration and underground mining of up to 365 Kt/year; the project also has a permit to extract water, and to build water containment facilities
A historic producer (sporadic high-grade/small-scale production). Prospect MMC consists of five main areas. Four shafts and 18 kms of tunnels
Geophysical and geochemical sampling results indicate the potential for deep-seated mineralization directly beneath historic workings, and near-surface mineralization in the northern part of the property, where only minimal historical exploration has been conducted.
Geophysics identified a 2-km long conductive anomaly, directly under old stopes and mine workings. Soil sampling has identified mineralization over 3 km
NPR has completed a two-phase drill program at the Prospect Mountain North area. The first phase was initial drill testing (one hole/ 992 m) the above mentioned 2-km long geophysical anomaly, while the second phase (27 holes/ 3,360 m) was designed to confirm historic grades, and extend mineralization at the Wabash, Williams, Chicago, and Madrid mine areas.
Phase one drilling intersected at least eight zones of CRD mineralization, with attractive grades of up to 9.5% Zn, and 4.6% Pb
Phase 2 Drill Highlights:
Phase two drilling returned high gold grades over several long intervals. Drilling confirmed two near-surface trends: Williams and Wabas; both zones are open along strike, and depth
Due to the mountainous terrain of the project, only a limited number of potential targets across the property have been tested
Since the Wabash/Williams areas represent only a small portion of the property, with several targets yet to be tested, management plans to conduct additional drilling programs to explore these targets before considering a maiden resource estimate.
Strong balance sheet, with $3.6M in cash. Pursuing a $2.0-$2.3M equity financing. In-the-money options and warrants can bring in up to $1.5M
Valuation and Rating
Although the recent drilling program has provided us with sufficient data to calculate a rough speculative resource estimate for the Williams and Wabash areas, the property remains largely untested, and is still in the early stages of exploration. We believe that assigning a valuation to NPR based solely on the current drilling results would not accurately reflect the project’s intrinsic value. Consequently, we will continue to refrain from assigning a rating or valuation to NPR at this time.
The recent drilling has bolstered our confidence that the project has significant potential, and warrants a more comprehensive study, considering its favorable location, existing infrastructure, and historical exploration results. We underscore management's proven track record as NPR's primary strength, with further drilling programs serving as future catalysts.
We are maintaining our risk rating of 5 (Highly Speculative)
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