TMR returns “Bonanza” Grade Gold results
Email Sent On: 08-02-2021
About a month ago our investment Tempus Resources (ASX:TMR | TSX: TMR) revealed visible chunks of gold in drill core samples they had pulled out of the ground.
An entire 2 metres of visible gold was reported by onsite drillers and the results were sent to the lab for testing...
This morning, the results came in.
TMR has just announced “Bonanza” grade results from its recent gold drilling campaign at its Canadian exploration project.
In gold exploration, Bonanza is big news.
The gold exploration industry defines a “Bonanza result” as any result above 34g of gold per tonne of rock/ore (g/t) - which is extremely high grade.
Anything above 5 g/t is considered high grade, but 34 g/t Bonanza grades are a whole other level.
This morning TMR’s lab results returned well above bonanza grades:
- 5 meters at 61.3 g/t including 1.5m at 186 g/t
- 3.2 meters at 28.1 g/t including 0.5m at 178 g/t
And this result is from just 2,000m of the proposed 6,000m drilling, (due to delays with permitting and the onset of winter) so there is plenty more drilling and results to look forward to in the coming months.
Our investment in TMR
TMR owns 100% of the Blackdome-Elizabeth project, located in a prolific gold producing region of British Colombia in Canada.
The project had historical production of over 230,000 ounces and comes with a permitted and previously producing mine, a mill, and a tailings storage facility.
We first invested in TMR back in February 2020. We were impressed by the company’s management team, the quality of its gold and silver assets in Canada and Ecuador, and its tight capital structure.
In August, TMR raised $2.5M at $0.31 per share and we increased our position in September when it was trading at around $0.35.
TMR is currently trading just above our original entry point of 20c and below our average entry price, however the company has made significant progress since that time.
What happens next?
With TMR’s tight capital structure, we expect a positive impact on the share price from the results today. We also expect a further rerating to occur, if upcoming drilling results from phase two drilling also delivers high grade results.
The recent “silver squeeze” mania has put the spotlight firmly on precious metals like silver and gold, which can be the X-factor for explorers like TMR.
A bit of digging reveals that as well as returning these bonanza gold grades, TMR’s project ALSO contains silver, and has in fact historically produced 564,300 ounces of the silver back in the 1980s.
With only 86M shares on issue (101M fully diluted), TMR should move fast on positive news.