1911 Gold Corporation
Financials:
Primary ticker: TSXV:AUMB, OTCQX:AUMBF
Stage of development: Exploration
Primary minerals: Gold
Project to promote: Rice Lake property, Manitoba
Project location: Canada
Website: www.1911gold.com
1911 Gold Corporation is a gold exploration company with a dominant, 58,000 hectare land position at Rice Lake located in southeastern Manitoba. Rice Lake is the western extension of the Uchi greenstone belt which contains the Red Lake district, approximately 100 km to the east. The Company has significant infrastructure in place, including an operating 1,300 tpd milling facility, an underground mine with one million ounces in resources, and and road access throughout the 90 kilometers of strike length at Rice Lake.
Debt: CAD$6.5M
Major shareholders:
Dundee Corp – 11.4%
Corporate – 8.8%
Michael Gentile – 7.9%
Hecla Mining – 5.2%
Management Ownership – 3.4%
Management Profile
Shaun Heinrichs – President and CEO
Shaun Heinrichs, President and CEO, with over 20 years of experience in the mining industry, acting in both a financial and operational capacity. His career began at Ernst & Young in Vancouver where he managed assurance and advisory services to several U.S and Canadian public companies, primarily in the resource sector. He subsequently held senior management roles in several public companies including serving as CFO and CEO of Veris Gold Corp., a precious metals producer listed in Canada and the US, from 2008 to 2015, and also as the CFO of VMS Ventures Inc. from 2015 to 2016. Mr. Heinrichs also served as a director of Veris Gold Corp from 2012 to 2013. Mr. Heinrichs is a Chartered Professional Accountant (CPA, CA) with the Institute of Chartered Accountants of British Columbia and holds a holds a business degree from Simon Fraser University.
What is your rationale for taking part in 121 Mining Investment?
Primarily to identify new equity investors, interested in both market purchases as well as participation in future equity financings. The Company has recently completed its third major drill program at site and expects to have significant news flow over the coming months.
What recent news would you like to highlight to investors attending?
The Company is currently still accumulating results from the recently completed drill programs, news releases should be forthcoming in over the next 6-12 weeks.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
In the near term, the Company is completing planning both for the commencement of the summer field program as well as developing targets in key areas of focus for future drilling programs in late Q3 and Q4. The Company will also commence the 2022 tailings re-processing operation in the near term, targeting 3,500 – 4,000 ounces of production by milling existing material on the tailings impoundment facility.
6 Months:
The Company expects to have additional drilling permitted and likely in process by the end of the third quarter, with the primary goal of advancing key target areas towards a new resource at site. The Company is also working to expand current land holdings in two key areas that have been identified as highly prospective.
12 Months:
Significant exploration within the Rice Lake belt will have occurred over this period, utilizing the funds from the recently completed $8M flow through financing as well as from the tailings operation which should run for approximately 5-6 months in 2022. Additional work will be done to assess the feasibility of exploring within the True North underground mine as well as texting extensions from that mine.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Primarily the time to exploration success, there are very few opportunities in the market to invest in a company with this size of land package in a mining friendly jurisdiction however the size of the property will require a very methodical approach which can take longer than smaller land packages. However the potential for a significant, 1M ounce or greater, discovery is much higher on a property like Rice Lake given the location and the historical production and resources that have been identified.
What do you think makes your company such a compelling investment?
As noted above, 1911 represents an opportunity to invest in an overlooked company with a large land package that includes both significant infrastructure as well as a history of exploration success (True North produced over 2M ounces historically, 1M ounces remain in the resource). At this time the Company is valued at less than $16M enterprise value, with almost no value given to the property package – the discovery of a resource on this property will lead to a significant re-rating of 1911 given the extremely low risk associated with developing a resource once in place.
What are the top 3 key investor takeaways?
Rice Lake is truly a district scale opportunity, owning 100% of the over 90km of strike length along one of the clearest examples of an ancient plate margin
Historically underexplored, with little to no drilling outside of historical mine workings and a fraction of the drilling which has occurred in the Red Lake district, 100km to the east and within the same greenstone belt
The property has historically been very fragmented, with over 5 different major land holders (including San Gold, at one point valued at over $1B on just the True North asset alone) and a number of small claim holders, this area has now been consolidated over the last 6 years with 1911 Gold now able to conduct a regional scale exploration program