Nubian Resources (TSX.V: NBR) is a precious and base metals exploration company focused on developing their key assets in – Australia & Peru. The company is managed by a team of experienced mining and geological professionals.
The company recently closed an acquisition to acquire the Yandoit, Fosterville East, Mathinna, & Lefroy gold projects located in Australia and Tasmania.
The Yandoit & Fosterville East gold projects are strategically located near Kirkland Lake’s (TSX: KL. Market cap: $15.28B) Fosterville Gold Mine which is located in - Central Victoria, Australia, and is considered to be - The World’s Best Address for High-Grade Gold.
The Yandoit gold project is an advanced stage exploration asset with high-grade historical gold production from hard rock and alluvial sources:
- Yandoit is 70 km southwest of the Fosterville Gold Mine which is owned and operated by Kirkland Lake (TSX: KL. Market cap: $15.28B)
- The company will immediately start shallow surface drilling to build a 43-101 mineral resource around current findings
- Current geological potential indicates typical high-grade gold of about 31 g/t gold over 1 to 2 metres
The Fosterville East gold project is a very exciting asset with huge exploration potential with multiple targets outlined:
- Fosterville East is 10 km East of the Fosterville Gold Mine which is owned and operated by Kirkland Lake (TSX: KL)
- Drilling is planned for early 2021
- Exploration license is located over hanging walls of heathecote fault zone, in an analogous position to the Fosterville Gold Mine
In North East Tasmania, Nubian also acquired the Mathinna and Lefroy gold projects located in the high-grade Mathinna goldfield:
- The New Golden Gate Mine had a historical hard rock production of 254,000 ounces @ an average grade of 26g/t gold
- 1914 Geological Survey of Tasmania report estimated that production to date had been between 300,000 and 320,000 ounces
- Drilling is set for 2021, with further development and a feasibility study to be completed
Martin Walter, president and chief executive officer of Nubian, commented: "The finalization of the Stavely acquisitions concludes what has been a very good year for Nubian in acquiring and expanding its exploration footprint into Australia. The combination of the Fosterville East and the Yandoit gold project, located in central Victoria, with the Lefroy and Mathinna projects that have similar geology provide Nubian with a good combination of early-exploration- and more advanced development-stage projects. The company is looking forward to 2021, a year that will focus on exploration activities of these highly prospective properties."
As of today, Nubian has 57.99M shares outstanding, and is trading at $0.57 per share, giving it a market capitalization of $33.05M. The 52 week high/low on the company is $0.69/$0.07 respectively. Nubian recently closed a $4.2M financing @ $0.42 lead by billionaire investor Eric Sprott. The current structure is 34.6% owned by institutional investors, 24.3% insider holdings, and 41.1% held by others.
A direct comparable to Nubian’s Australian assets is Fosterville South (TSX.V: FSX) which is exploring high-grade gold in Victoria, Australia. Fosterville South is developing their Lauriston, Providence (tenement application), and Golden Mountain gold projects. The company just spun out their Avoca and Timor gold projects into their Leviathan Gold Finance Ltd. Leviathan completed a $12.9M financing @ 50 cents. Currently Fosterville South is trading at $2.15, with 67.9M shares outstanding, giving it a market capitalization of $145M, and a cash position of $30.35M as of November 2020.
Kirkland Lake’s (TSX: KL) Fosterville Gold Mine is a high-grade, low cost underground gold mine. Fosterville commenced operation in 2005 and during its initial years, produced gold from near-surface, low-grade mineralization. A major inflection point was achieved in 2015 with the discovery of the Eagle zone, containing high-grade visible-gold bearing mineralization, which resulted in a significant improvement in the mine's overall Mineral Reserve grade, production profile and unit cost performance. For the year 2019, Fosterville produced 619,366 ounces @ 39.6 g/t gold.
DISCLAIMER: Nubian Resources is a marketing client