Today a comparison of two companies, GT Gold (Mrkt Cap <200M) and SolGold (Mrkt Cap +700M).
Both companies developing a porphyry asset. SolGold reports a resource (combined indicated and inferred for simplicity sake) of 120 Mt @ 1.1% Cu and 1.3g/t Au (at > 1.1% CuEq) and 100 Mt @ 0.7% Cu and 0.5g/t Au (at 0.9 – 1.1% CuEq) for their Cascabel deposit.
In the Honest Analysist’s opinion, the quoted resource estimate of 0.3 – 0.9% CuEq cutoff is too broad and not worth considering at this stage. One needs to know what tonnage is at the 0.7-0.9% CuEq range; anything below 0.7% CuEq is probably not economically feasible to mine (please check on block cave mines if you disagree). Note, the mineralization starts at 500-600m depth (approx. 600m of barren cover). Finally, Ecuador is considered high-risk, but please do your research if one disagrees (Kinross, best example).
Now, let’s look at GT Gold’s new discovery Saddle North project, located in the Golden Triangle, BC, Canada. The Saddle North project is near the World Class Red Chris deposit and mineralization occurs AT SURFACE. BC is considered a Low to Moderate risk investment climate, but others may disagree. Drilling to date has confirmed a strike length of 250m, width of approx. 430m for the high-grade core and depth potential of at least 600m. If we calculate the numbers, 250*430*600*2.7 = 175 Million Tonnes at estimated grades of 0.4% Cu and 0.6g/t Au. So, the BIG NEWS to watch for are the next assays, drill holes TTD098, TTD107 and TTD102 should be reporting soon If all three holes hit, one can estimate strike length 600m, width of 430m for the high-grade core and depth potential of at least 600m (depth probably 900m). If we calculate the numbers, 600*430*600*2.7 = 420 Million Tonnes at estimated grades of 0.4% copper(1.7M tonnes) and 0.6g/t gold (8.4M ounces). If these holes do hit, should we expect to see a Mrkt Cap of + 700M for GT Gold in the near future? Oooooh the suspense… Let the games begin…