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Price Performance (1-year)
Portfolio Overview
Four projects. In 2025, the company will maintain its focus on the flagship Silver Queen project, while initiating preliminary exploration at the recently acquired Arlington project
Silver Queen Gold-Silver-Polymetallic Project, B.C.
The project is 590 km northwest of Vancouver, B.C. As major and mid-tier miners are operating in the region, we believe there is potential for M&A opportunities
Since 2020, EQTY has drilled 146 holes, totaling 52,877 m
High-grade resources totaling 1.04 Moz AuEq (85 Moz AgEq) covering four out of 20 known veins
A Successful 2024 Drill Program
In 2024, EQTY completed 42 holes (17,209 m), delineating a 550 m strike at George Lake, a 400 m strike at No. 3 North, extensions in the Camp Deposit veins, and a new discovery at Camp North.
2024 Drill Results: Highlights
Multiple holes intersected high-grades
George Lake Target:
No. 3 North Target
Camp Deposit
2024 drilling confirmed mineralization beyond the northern end of the No. 3 vein, which remains open along strike and at depth
Management intends to complete an updated resource estimate in Q3. Given that the last resource estimate was completed in 2022, the new resource will include results from 68 holes (27,198 m) drilled in 2023-2024. We believe the 2023-2024 programs have added 20-30 Moz AgEq in new resources, and as a result, we expect the new resource estimate to reflect a 30% increase.
This year, the company plans to drill an initial 6,000 m, focusing on No. 3 North, Camp, and other targets.
Arlington Au-Cu-Ag Project, B.C.
In December 2024, the company entered into an option agreement with Origen Resources (CSE: ORGN / MCAP: $3M) to acquire the 3,584 ha Arlington project in the Boundary district of south-central B.C. The company can acquire the project for 2.9M shares (0.9M issued), $0.25M in exploration spending, and $130k in cash ($80k paid).
Located in a historic mining district. 65 km south of Kelowna
Property Location
60 km from the Buckhorn mine, operated by Kinross (TSX: K) from 2007 to 2017, which produced 1.3 Moz of gold
Targets
Three main targets identified
Past work has identified the following: a Au-Ag-Cu anomaly spanning 2,000 m xby 1,000 m, and a Cu-Mo-Ag anomaly spanning 750 m x 500 m
Past work on the property included rock chip and grab sampling, soil sampling, and geophysical surveys. Sampling indicated potential for high grades, with strongly anomalous values such as the following:
EQTY is planning surface mapping, sampling, and airborne geophysical surveys across the three targets, prior to a planned 3,000 m drill program this year.
Financials
Strong balance sheet. Subsequent to Q1-FY2025, EQTY raised $2.47M through an equity financing
Can raise up to $6.63M from in-the-money options and warrants
FRC Valuation
EQTY is trading at $33/oz AuEq vs a comparables average of $68/oz (previously $44/oz)
EQTY is trading at $0.40/oz AgEq vs a comparables average of $0.69/oz (previously $0.47/oz)
Applying sector multiples to EQTY’s resources, we arrived at a revised fair value estimate of $0.39/share (previously $0.30/share)
We are reiterating our BUY rating, and adjusting our fair value estimate from $0.30 to $0.39/share. We expect a 30% increase in the upcoming resource estimate, based on data from the past two years of drilling. With a solid cash position, a newly acquired high-grade project, and a substantial valuation discount relative to its peers, we believe EQTY presents a compelling opportunity, especially considering our expectation of heightened M&A activity driven by strong metal prices.
Risks
Maintaining our risk rating of 5 (Highly Speculative)
We believe the company is exposed to the following key risks (not exhaustive):
