Element79 Gold Corp (OTC: ELMGF) is a junior mining company focused on developing high-potential gold and silver projects. Despite recent market volatility, Element79 has made strategic moves to streamline its portfolio and advance key assets. With near-term catalysts, Element79 is positioned for significant growth.
Element 79 gold’sflagship Lucero Project Provides Clear Path to Production
Element79’s flagship project is the past-producing Lucero high-grade gold-silver mine in Peru. Lucero has strong economics with assay results up to 7.7 g/t Gold and 916 g/t Silver. Infrastructure already in place lowers restart costs.
Element79 is focused on bringing Lucero into production over the next 12 months. The mine plan involves low-cost mining in 7 existing underground addits, exploration of new addits into the 80 veins at surface on this property.. Lucero will allow Element79 to start generating cash flow quickly through bulk sampling and toll processing with local mill facilities.
Galena-sphalerite bearing stringer-style low sulphidation epithermal quartz-carbonate vein which returned 7.1 g/t gold, 50 g/t silver, 0.1% copper, 1.7% lead, 2.1% zinc from recent artisanal workings on surface.
The company has been actively developing social programs and agreements with local communities, a crucial step in Peru and has just received its first 4-month work contract approved by the local community: https://www.thenewswire.com/press-releases?id=1Av7Fg8d6 Element79 plans to release a detailed Lucero work program soon.
With gold prices above $1800/oz, Lucero provides promising upside as a potential company-maker asset for Element79.
Element 79 gold’s Strategic Streamlining of Battle Mountain Portfolio
In Nevada, Element79 holds a portfolio of projects along the prolific Battle Mountain gold trend. The company recently made the strategic decision to streamline this portfolio by dropping 8 lesser-developed projects.
Two projects with strong potential for near-term resource expansion were retained:
- Clover Project: Located near Hecla’s high-grade Midas mine. Extensive historical mining and drill results point to resource growth potential through further drilling.
- West Whistler Project: Located near major deposits including Barrick’s Cortez mine and I-80’s Ruby Hill mine. Past drilling indicates possible Carlin-type mineralization open along strike and at depth.
Streamlining allows Element79 to focus capital on its core assets with the best economics.
Source: The Clover property gallery
Non-Core Asset Sales Unlock Value
Element79 has also been monetizing non-core assets, including the recent signing of an option agreement for Australian company Green Power Minerals to acquire the Maverick Springs project. Maverick Springs has an inferred resource of 3.7 million AuEq ounces. The sale agreement with Green Power is worth up to CAD$5.5 million to Element79 through cash payments and shares.
Selling mature exploration assets like Maverick Springs at fair valuations demonstrates Element79’s focus on maximizing shareholder value.
Prudent Financial Management
Despite market volatility, Element79 has proactively managed its financial position.
In August 2022, the company secured an equity investment facility of up to CAD$5 million and then extended it to $10 Million from Crescita Capital. This provides flexible access to financing with favorable terms.
Over CAD$7 million has already been drawn from the Crescita facility to advance key projects. Element79 has also closed a recent financing round, oversubscribed to the tune of CAD$145,000 through the issuance of short-term notes.
Importantly, Element79’s burn rate is modest for a junior miner, reflecting a lean team focused on shareholder value.
Conclusion: An Undervalued Junior Poised for Growth
With a clear path to production at Lucero, strategic focus on core assets, and prudent financial management, Element79 Gold is well-positioned among junior mining peers.
Near-term catalysts, such as the release of a Lucero work program, resource expansion drilling at Clover and West Whistler, and the monetization of Maverick Springs, provide shareholder upside.
Trading at a modest valuation relative to its portfolio potential, Element79 is one to watch in the junior mining sector.