Are you looking for a junior exploration company seeking considerable value in a tier 1 mining jurisdiction? Gelum Resources (CSE: GMR) is the perfect company for you. In a time when investors circle back to commodities, investing in mining and gold-related companies is a safe investment.
Why Gold and British Columbia?
Not a single investor will tell you that investing in gold is risky. Indeed gold is considered a hedge against inflation because it tends to hold its value and preserve people’s purchasing power over the long haul despite fluctuations in the dollar. For the first time ever, gold exceeded $2k/kg, and the continuous growth isn’t likely to end. While gold is mined worldwide, Canada is one of the best places to mine the commodity. According to the Fraser Institute, its provinces are consistently ranked in the tier 1 mining jurisdictions.
British Columbia, where Gelum’s explorations are, counts 326 active exploration projects. In 2021, gold accounted for the third main resource extracted in the province, representing 12.1%. It is also important to mention that the sector is heavily supported by the government and was ranked as the world’s least-risky jurisdiction in 2017 and 2018.
The company’s properties are located in well-known areas for returning high-gold grades. The Bralorne/Bridge River gold district is recognized as being host to one of the highest-grade and longest-producing mines in British Columbia. If we talk with numbers, the Bralorne Mine Complex returned historical production of 4.2 Moz at an average recorded grade of 17.7g/t Au. This is where the Eldorado Gold project is located. The property comprises 26 claims and covers 9,029 hectares. An important piece of information is the property covers forme producers such as Robson (gold) and Manitou (tungsten). The company already completed a 3,000m drilling program in fall 2022, and more should be drilled in summer 2023. Combined with the campaign, five additional high-priority geochemical targets have been identified but haven’t been tested by historical drilling. The company reported positive results with the best interception including 44 meters assayed 0.414 g/t Au (ELD22-03), which contains two close-spaced, higher-grade intervals of 3.26 g/t Au over 0.83m and 3.11 g/t Au over 1.05m.
“The partially completed drill program intersected gold in all three holes and indicates one of the larger mineralized panels probably extends for more than two kilometres along strike. Follow up drilling will build on these intercepts by testing deeper parts of the system where sulphide and gold content are expected to increase. Positive results will indicate there’s a very significant high-grade deposit to drill off”.
Director Henk van Alphen
The second project, named ML, covers 8,736 hectares and is located in the Interior Plateau region in the porphyry belt. Previous sampling has produced Surface rocks containing up to 1.4% Cu and 0.648 g/t Au, while gold placer occurrences may be found along the northeastern and northern claim limits. The project’s half is till-covered, and considerable mineralization may exist there. Previous sampling has produced Surface rocks containing up to 1.4% Cu and 0.648 g/t Au, while gold placer occurrences may be found along the northeastern and northern claim limits. The project’s half is till-covered, and considerable mineralization may exist there.
Previously, Gelum initiated a field mapping (access routes, lithological field mapping framework) completed in fall 2021. Then, Precision GeoSurveys recently conducted a high-resolution magnetic and radiometric survey from a helicopter. Precise GeoSurveys recently conducted a high-resolution magnetic and radiometric survey from a helicopter. For the ML survey block, 488 line-km were flown at a high angle to the geologic fabric, with 200 m between lines. The geophysical data’s preliminary analysis points to the existence of several porphyry-style de-magnetized zones located up-ice from geochemical anomalies.
These projects would go nowhere without the management team. The board notably counts on Henk van Alphen as director. Henk van Alphen spent over 30 years in the mining industry and has been a key player in companies such as Corriente Resources, Cardero Resources, and International Hill. Another key factor is he helped to raise over $1B in financial transactions. Chief Geologist John Drobe spent over 30 years being specialized in porphyry copper-gold, epithermal, and skarn deposits throughout the Americas. As he has worked on projects in Peru, Argentina, Ecuador, Venezuela, and Chile, Mr. Drobe has extensive expertise in planning and leading exploration missions, particularly in South America.
Share Structure / Financials
Let’s dive into the numbers. The company previously closed several financing and is now well-positioned to commence explorations. As of January 31, Gelum Resources had $971k in cash and didn’t have many expenses. According to the latest financial statements, Gelum spent $431k, of which $245k represents share-based payments.
Still, according to the financial statements, the company has 32.5M shares issued and outstanding. Gelum also has 16.7M warrants at $0.27 and 2.65M options at $0.20, but neither can be exercised as the stock price is under both exercise prices.
Regarding the stock price, it trades at $0.17 (May 8, 2023) and sits nearby its 52-week low of $0.17 while it has a 52-week high of $0.27.
What You Should Remember About Gelum Resources (CSE: GMR)
- Gold is a strong hedge against inflation, and investing in gold-related companies offers more significant ROI;
- Gelum Resources operates in one of the best mining areas worldwide;
- The Eldorado Gold project is located in the Bralorne/Bridge River gold district near Lillooet, which was host to host one of the highest-grade, longest-producing mines in British Columbia;
- The board garners seasoned members with successful track records;
- The company is well-financed to operate its drilling plans.