1911 Gold Corporation
Primary ticker: TSXV:AUMB, OTCBB:AUMBF
Stage of development: Exploration, Development
Primary minerals: Gold
Project to promote: True North Mine Complex at Rice Lake, Manitoba
Project location: Canada
Website: www.1911gold.com
Corporate Presentation: Click here
1911 Gold Corporation is an advanced gold exploration and development company with a dominant, 62,000 hectare land position at Rice Lake located in southeastern Manitoba, 100 km to the west of the Red Lake camp which lies on the same major fault structure. The Company has significant infrastructure in place, including an operating 1,300 tpd milling facility, an underground mine with a 1M in Au resources at an average grade of 6.5 g/t, and road access throughout the 90 kilometers of strike length at Rice Lake. The Company is currently in the process of updating the 1M ounce Au resource and identifying the upside opportunity within the existing mine footprint.
Cash: CAD 1.8M
Debt: CAD 0.5M
Major shareholders:
Eric Sprott – 12%
Dundee Corp – 6%
Grid Metals – 5%
Undisclosed Corporate – 5%
Gunsynd PLC – 4%
Management ownership – 7%
Financials
Management Profile
Shaun Heinrichs – President and CEO
With over 22 years of experience in the mining industry, acting in both a financial and operational capacity. He is a CPA with significant capital markets and finance experience, spending most of his career working in operating and advanced exploration stage resource companies, primarily the precious metals sector, where he provides a hands on, operational approach to financial management. Mr. Heinrichs has either raised or participated in the raising of over $100M in equity financings and over $180M in debt and debt equivalent financing over his career in the mining industry.
What is your rationale for taking part in 121 Mining Investment?
Primarily to identify new equity investors as well as identify alternative forms of financing for the long term growth of 1911 Gold’s flagship property. The Company has recently commenced work to update the existing resource and optimize both the mine plan as well as identify the resource growth opportunities for future exploration around the mine.
What recent news would you like to highlight to investors attending?
New Cornerstone investor – December 27, 2023 – 1911 Gold Announces Closing Of Non-Brokered Private Placement Lead By Eric Sprott
New Key Personnel –
April 11, 2024 – 1911 Gold Welcomes New VP Exploration
April 15, 2024 – 1911 Gold Appoints Gary O’Connor As Executive Chair
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Complete an update of the existing 1M Au ounce resource with an optimized mine plan as well as identify near term targets for resource growth.
6 Months:
Commence surface drilling of near mine targets that will lead to significant resource growth, opportunities that are already partially identified.
12 Months:
Identify and potentially commence exploration of high priority regional exploration targets (Central Manitoba and Ogama Rockland projects with historical mining and resources already in place).
Access part of the existing underground to commence underground drilling of key target areas and build additional areas for underground production.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Primarily the capital markets and access to debt and equity capital to fund the expenditures needed to develop and restart the underground mine. The remaining risk specific to 1911 Gold is the ability to grow the resource to provide long term sustainable production beyond just the 1M Au ounces currently in resource and also identify additional regional opportunities and fund their exploration.
What do you think makes your company such a compelling investment?
1911 represents an opportunity to invest in an overlooked and undervalued company with a large land package and infrastructure that is well in excess of $300M in replacement value. The Company is valued at less than $10M enterprise value, or $10 EV per ounce on a property that is in a supportive jurisdiction for resource development and in a known greenstone belt. Comparable companies are valued over $50 EV per ounce with many not having access to a milling facility and permitted tailings pond.
What are the top 3 key investor takeaways?
1911 Gold is continuing to trade at a discounted level despite the addition of new key personnel and a new focus on building the resource to return to production. Many investors are still basing their investment decision on the last few years of exploration only, not recognizing the change in focus.
The current consolidated land holdings, historically very fragmented and held by a number of small private companies and individuals, represents a significant, regional scale opportunity, with over 90km of strike length along the lower crust of the same structural feature that defines the Red Lake camp 100km to the east.
There continue to be strategic opportunities within the area to build and expand the production profile at the property, allowing a stepped path towards production growth within a 40 km radius of the mill infrastructure.