An Extremely Undervalued Gold Stock
I'm always on the look out for undervalued mining plays and over the years I've come up with a few juniors that were going along totally unnoticed by the general public. After doing a little bit of due diligence and maybe even a call to the company to get an updated story, some of these small undervalued juniors paid off well. Other times a subscriber will email me pointing out a stock that they think is undervalued too. In fact there are several write ups on this website that have been contributed by readers just like you who had a postion in a stock they felt was undervalued and wanted to share the information with others.
One of the issues you find is when you happen to come across a small penny stock that is sub 5 cents and doesn't trade often, is that we as investors tend to dismiss the stock even before we do any kind of investigation. When it comes to these sort of junior mining plays that are in the pennies most tend to think that the company only will have only a few claims in some far away place that will never see any kind of development. Today however I would like to tell you about a company that trades for pennies but just one of it's properties is probably worth more than the entire market cap of the company.
The company I am going to talk about today is Frontline Gold TSX-V:FGC. Here's a small junior that is sitting at a mere 2 cents at the time of this writing and what I can't wrap my head around is the "WHY". This junior has a portfolio of exploration properties in prime locations that a lot of junior companies would die for. There are seven properties in Ontario and three in Quebec. Both of these provinces are prime gold mining jurisdictions and most of the properties the company has are all located right close to where there is active mining operations. For the sake of simplicity and getting to the point on this junior, I'm only going to talk about two of the properties because these properties have the most to offer at this time.
The first property is the Route 109 property in Quebec. This property is a large claim block of 100 claims covering 5588 hectares. A quick look at the map below will show just how close this property is to some active projects in the immediate area. For example, Maple Gold Mines TSX-V:MGM Douay gold project is active right now and has an established NI 43-101 mineral resource estimate of 8.6 million tonnes grading 1.52 g/t Au for 422,000 contained ounces of gold in the Indicated category. The inferred grades stands 71.2 million tonnes grading 1.03 g/t Au for 2.35 million ounces of gold. Other projects in the immediate area is the Vezza Mine with historical production grades of 6 grams per ton gold and Wallbridge's N2 Gold project which grades about 1.5 grams per ton. Route 109 is just a stones throw from this project and in May of this year Frontline did a 30 KM IP program on this property. This IP program will provide the company with definitive drill targets for an upcoming diamond drilling campaign. The geology group is at present working on drill targets with possible drilling in the first quarter of 2022.
In regards to any previous drilling on the Route 109 Property, there is some historical drill holes where significant intersections have been encountered. These include DH 92-CA-A-05 which intersected 0.608 g/t Au over 10.8m DH 92-CA-A-15 which intersected 102.4 g/t Ag over 2.45m and DH 96-Ca-A-20 which intersected 1.13 g/t Au over 45m which includes 10.95 g/t Au over 4m. Having historical drill information on hand plus the new IP data the company can expect some promising targets on the future drill program.
Crooked Pine Lake
Going over into Ontario where Frontline has seven properties, one of those properties stands out above the rest. This property is the Crooked Pine Lake property. This property consists of 8 multi-cell mining claims and 113 mining cells totaling 5,703 hectares. The property has excellent road access not far from Thunder Bay. Geologically speaking this property is located on the Quetico Fault which is similar to other faults in the area. As an excample one of these trending structures hosts 5 million ounces of gold that is in the Agnico Eagle Hammond Reef Deposit.
The company has gone ahead with a quite a bit of work on this property during this past summer of 2021. Actually work began in the fall of 2020 with a sampling program where samples were gathered at old trenches and diggings. These samples returned some very impressive results. Excamples from one trench was 7.03 g/t Au and 1.29 g/t Ag within a quartz vein. At another location samples returned 0.455 g/t Au and 1.74 g/t Ag.
Early summer in May 2021 the company under took another sampling program where results returned 3.06 g/t Au and 0.519 g/t Au. The Crooked Pine Property has been issued a permit for an initial three (3)-year term. This permit will allow the company to undertake various surface exploration activities on the property including potential trenching on up to 17 identified locations and over 65 diamond drilling hole locations. This this permit Frontline is now planning a phase 1 drill program on the Crooked Pine property. The drilling will most likely commence in the first quarter of 2022.
The company's other properties in Ontario include the Cameron Lake property in the Rainy River district which consists of 7 individual property groups covered by 21 mining claims and are located adjacent to Chalice Gold Mines Limited's Cameron Gold Project. Then there is the Copperlode property which consists 25 claim cells and 7 boundary cells. This property is in the Uchi subprovince area. There is also the Red Lake properties that include seven claim groups totaling 262 individual claims located approx. 80 kilometres east-northeast of the town of Red Lake. The Granite Ridge properties consist of 49 claim blocks totaling 995 hectares. Anyone who follows gold exploration knows that the Red Lake area is seeing a lot of activity.
Back over to Quebec, the company's additional properties include the Portage River Property and the NE Bachelor. The Portage River property has 28 claims totalling 1,567 hectares while the NE Bachelor is 62 mining claims totalling 3,454 hectares. Close to the Portage River property is the AMEX Perron Property Amex TSX-V:AMX which has been reporting impressive gold intersections along it's southeast trending structure. The Portage River Property is hosted along a parallel structure called the North Chicobi Fault.
In July of this year the company signed an option agreement to acquire an 80% interest in the high-grade Cu-Zn-Ag Epworth Project located in Nunavut. This project known as the Epworth Project is located less than 100KM south of the village of Kugluktuk and consists of 5 claims totaling 1,313 hectares.
Lastly the company even has an international property located in Turkey. This property, the Menderes Gold Project is situated just south of Eldorado Gold's TSX:ELD
high grade Efencukuru Mine. This property consists of 4 permits encompassing 6,194 hectares. Exploration work at Menderes will concentrate on a southeastern extension of the Kokarpinar vein system with current inferred resources of 2.3Mt grading 6.64 gram per ton gold for 491,000 ounces of gold as per an Eldorado Gold 2019 43-101 technical report.
What I've written here barely scratches the surface of what all this company has. Fully diluted there is only 154 million shares outstanding and management owns around 30%. There is 200 thousand in cash in the treasury plus stock and assets and a drill program right around the corner. There is more than one analyst out there stating gold prices are not going to be where they are for much longer and most anyone who follows the gold market will tell you gold prices are going to be going much higher. As the saying goes. "A rising tide lifts all boats".
To find out more about Frontline Gold, check out their WEBSITE and reveiw all this for yourself.
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