Metals Creek (TSXV: MEK) is beginning to breakout big and gained 30% yesterday to $0.065 per share! MEK has 74,865,268 shares outstanding for a current market cap of CAD$4.866 million or USD$3.468 million. As of December 31, 2019 MEK had a total cash position including subscription proceeds receivable (that it received in early 2020) of CAD$697,527 and no debt. This gives MEK an enterprise value of only CAD$4.168 million or USD$2.97 million.
MEK owns 64,433 shares of O3 Mining (TSXV: OIII) currently trading for $1.70 per share valuing them at CAD$109,536. MEK owns 4,200,000 shares of Quadro Resources (TSXV: QRO) currently trading for $0.07 per share valuing them at CAD$294,000. MEK owns 2,250,000 shares of Sokoman Minerals (TSXV: SIC) currently trading for $0.085 per share valuing them at CAD$191,250. MEK owns 300,000 shares of Anaconda Mining (TSX: ANX) currently trading for $0.19 per share valuing them at CAD$57,000. MEK owns 600,000 shares of Manning Ventures (CSE: MANN) currently trading for $0.05 per share valuing them at CAD$30,000. MEK owns 1,000,000 shares of Trifecta Gold (TSXV: TG) currently trading for $0.025 per share valuing them at CAD$25,000.
MEK's shares in other publicly traded mining companies are worth CAD$706,786. If we subtract this amount from MEK's enterprise value, MEK at $0.065 per share is only receiving CAD$3.461 million or USD$2.467 million in value for its two high grade gold projects that the company is exploring in partnership with the world's largest gold miner Newmont Mining (NEM).
MEK is the 50% owner of the 1,184 hectare Ogden Gold Project in a 50/50 joint venture with NEM. Ogden is an underexplored high-grade gold project in the Timmins Gold Camp and covers over 8km of strike length on the Porcupine-Destor Break in between NEM's Dome Mine (the second largest producing gold mine in the history of Canada) and Pan American Silver (PAAS)'s Timmins West gold mine. NEM's current operation at the Dome Mine Complex is located 8km east of the Ogden Gold Project and has produced in excess of 17 million oz of gold. Five additional past producers of gold occur along the Porcupine-Destor Break in between NEM's Dome Mine and the Ogden Gold Project including Delnite (920,000 oz), Aunor (2,502,000 oz), Buffalo-Ankerite (957,000 oz), Paymaster (1,192,000 oz), and Preston (1,539,000 oz).
In 2013, MEK's Ogden drill hole TOG 13-25 intercepted Bonanza gold grades of 210.19 g/t gold over 12.53m for 2,634 grammeters of gold! MEK's Ogden drill hole TOG 13-27 also intercepted Bonanza gold grades of 49.96 g/t gold over 9m for 450 grammeters of gold!
Gold was in a bear market at the time and almost nobody noticed MEK's Bonanza Gold Discoveries! Imagine where MEK would trade if it made new Bonanza gold discoveries today with gold getting ready to hit new all-time highs!
GFG Resources (TSXV: GFG) owns the Pen Gold Project located west of MEK's Ogden Gold Project on the other side of PAAS's Timmins West gold mine and on April 6, 2020 GFG announced that its drill hole PEN-20-47 intercepted 71.27 g/t gold over 8.5m for 606 grammeters of gold. GFG's discovery of Bonanza gold grades caused GFG to rise by 105.56% to $0.185 per share in a single day. GFG's enterprise value is now CAD$16.45 million, which is 4.75X more than the CAD$3.461 million in value that MEK is receiving at $0.065 per share for its two high grade gold projects!
Last year, MEK entered into a new agreement with NEM, where MEK will be earning a 100% interest in the 1,063 hectare Dona Lake gold project, a high-grade past producing gold mine located in the Pickle Lake Greenstone Belt! Between 1989 and 1994, Dona Lake operated as an underground gold mine producing a total of 246,500 oz of gold at an average grade of 7.44 g/t gold!
The main zone of the high grade past producing Dona Lake gold mine remains open at depth below its bottom level (455 level)! A historical drill hole that drilled 100m below the 455 level intercepted 4.36 g/t gold over 21.08m for 92 grammeters of gold indicating the continuation of gold mineralization! MEK has also located new unexplored drill targets parallel to the main zone that produced 246,500 oz of high grade gold!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from MEK of USD$30,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.