Clarity Gold Corp – Featured
Sep 14, 2021 By MarketDepth
Discover Why Investors are ALL IN on the Abitibi
The Abitibi region is home to one of the largest mineral-rich greenstone belts on the planet, formed over 2.6 billion years ago.
For those who don’t know, the Abitibi greenstone belt contains some of the world’s largest gold and base metal deposits. The region has produced over 190 million ounces of gold and more than 450 million tonnes of Cu-Zn since the early 1900s.
It stretches across Quebec into Ontario and in 2019 it accounted for nearly 75% of the gold production in Canada. That added up to a whopping $16.73 billion worth of gold being produced in the region that year.
To say that optimism for junior miners is high in the Abitibi is an understatement. The region has been attracting a significant amount of investment in recent years, largely due to the likelihood of explorers coming upon the revered ‘high grade’ discoveries that are often associated with this greenstone belt.
Some notable global miners including Osisko, Amex, Bonterra, IAMGOLD, Yamana, Agnico Eagle, and Probe Metals have made strong statements of their confidence in the Abitibi through their expenditure in the region.
Early investors in the region have been reaping their rewards
The region has produced over 190 million ounces of gold historically and has hosted some of the most notable names in Canadian gold mining.
- Some of the largest gold exploration companies in the region have already given investors incredible returns
- Amex Exploration validated their exploration thesis when in June of 2021 they drilled 929.24g/t Gold over .50m and 102g/t Gold over 6.1m in September of 2021. Investors were rewarded a 20x return over 2 years with the stock going from $0.19 in December 2018 to a high of $3.85 in December 2020.
- Osisko Mining has risen to behemoth status achieving a $1B Market Cap along with superb drill results on September 7, 2021 that included 512 g/t Gold over 2.4 m and 212 g/t Gold over 2.4m.
- Starr Peak Mining intersected 20.94% Zn, 0.43% Cu, 39.58 g/t Ag and 0.21 g/t Au Over 12.10 m in May of 2021. Investors recognized a 20x return in 2 years as the stock went from $0.20 in May 2019 to it’s all-time-high of $4.05 in May 2021.
Clarity Gold Corp:
Exploring Amongst Giants
Clarity Gold Corp. (CSE:CLAR | OTC: CLGCF) is one of the newest entrants to the region with an option to acquire up to 100% of the Destiny Gold Project. The deal was announced on November 30, 2020 and has signaled a transformational shift for the company. The Destiny Project has “Gold in the Ground” with 360,000 oz indicated and 247,000 oz inferred historical resource estimates. Not to mention that 25% of all 172 historical drill holes reported visible gold.
Class | Tonnes | Au (gpt) | Au (ounces) |
Indicated | 10,800,000 | 1.05 | 360,000 |
Inferred | 8,300,000 | 0.92 | 247,000 |
- A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and
- The issuer is not treating the historical estimate as current mineral resources or mineral reserves “
- Information relating to this historical estimate is summarized from a technical report authored by Todd McCracken, P.Geo. of Wardrop Engineering Inc entitled “NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec” effective March 1, 2011 filed on SEDAR for Alto Ventures Ltd (now Big Ridge Gold Corp).
- The 2011 Report was compiled in accordance with Canadian Institute of Mining (2005) standards and best practices for Mineral Resources, adhering to NI 43-101. Alto Ventures established a QAQC program that was reviewed by the independent QP who accepted the data as suitable for mineral resource estimation at that time.
- Capped gold grade was interpolated using IDW method into a block model constrained by mineralized domains. Parameters used include a cut-off grade of 0.5 g/t Au, Au price of US$973/Oz, US$ to CAD$ conversion of 1.02, Au recovery 94%, 4:1 Strip ratio, Operating cost of $14.30/t at 10,000 tpd, density of 2.76
- In accordance with NI 43-101 as defined in 2011, the DAC historical estimate used the terms inferred and indicated mineral resource having the same meanings ascribed to those terms by the CIM Definition Standards on Mineral Resources and Mineral Reserves.
- There are no more recent estimates available to the issuer. There are only 17 drill holes totalling approximately 4,485 m completed that are not included in the 2011 historical estimate, with only one hole being within the historical estimate area.
- A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and
- The issuer is not treating the historical estimate as current mineral resources or mineral reserves “
The Destiny Project now places Clarity within regional proximity to projects from the likes of Newmont, Osisko, Amex, Bonterra, IAMGOLD, Yamana, Agnico Eagle, and Probe Metals.
Lesser Explored Region
However, with it being positioned along the Chicobi Fault Zone, Clarity has the opportunity to explore one of the lesser drilled regional deformation corridors in a region that has already given us many great discoveries.
The property has shown gold mineralization open to depth and along strike with mineralization occurring in high-grade quartz veins within shear zones starting at 15m below the surface (drill results include 167g/t Au over 1 m, 6.15g/t Au over 23.6m, 19.49g/t Au over 2.7m, 90.3g/t Au over 1m).
Being approximately 75 km NNE of Val d’Or with road access, it offers excellent infrastructure, low development costs, and significant exploration potential for discovering new deposits.
Recently Completed 10,000m Drill Program
Since optioning the Destiny project, the Clarity team has been on a mission to prove their asset. They recently completed a 10,826m diamond drilling program in late July, of which the initial results were released in June.
Those preliminary results included 32.67g/t over .45m and 18.64g/t over 2.10m, meriting well-enough validation for Clarity to continue pushing forward with their exploration program. To date Clarity has released approximately 2600m of their 10,826m drill program.
Next Results on the Horizon…Awaiting Assays from the Lab
With proximity of the Destiny Project in relation to other notable global miners, there is an opportunity for a discovery. If Clarity can return drill results that prove to be of a similar calibre, it has the potential to see it’s valuation be aligned more closely with those of its regional peers. Their objective will no doubt be to continue on the expansion of their exploration program in an effort to find those results.
Having high-grade gold is an obvious goal for the company, but without the right team and a solid financial position, it would be impossible to feasibly prove its value.
That said, Clarity has been strategic in their efforts to keep the company well financed while balancing an agile capital structure, a feat which many junior miners have notoriously struggled with.
They’ve also amassed a team of highly experienced industry professionals to lead and execute their current and future drill programs.
Building a High-Calibre Team
The company has put together a powerhouse advisory team including Michael Williams, Michel Robert, Rory Kutluogu and Ian Graham. Their mining experience comes from some of the largest companies in the sector including Aftermath Silver, SNC, Rio Tinto, Pan American Silver and Kaminak Gold.
These are advisors with a combined +80 years of executive experience across diverse fields of mining including project generation, exploration, feasibility, project advancement, acquisition, operation, design, and finance.
Rory Kutluogu, for example, is a renowned geologist who was the Exploration Manager for Kaminak Gold while they drilled the Coffee Project. That project was ultimately the catalyst in Kaminak being acquired for $520 million by Goldcorp in 2016 (later acquired by Newmont Mining).
CEO James Rogers, is a reputable project generator that has executed over 100 resource property transactions.
Michel Robert brings over 45 years of diverse technical experience in the mining industry including operations with major companies like Quebec Cartier Mining, Teck Corp., SNC, Lac Minerals (now Goldcorp), AMEC, Minero Peru, Fluor Daniel and Pan American Silver Corp.
He previously served for nine years at Teck as corporate metallurgist, lead engineer, and start-up manager. He was also a director of SNC (now SNC Lavalin Group) and one of three founders of Simons Mining Group (now AMEC Foster Wheeler).
Tight Capital Structure
An interesting note about Clarity’s stock is that despite having recently raised over $8.3million through two private placements which were priced at $.96($4.5million) and $1.85 flow-through($3.8million), it still only has about 28million shares issued and outstanding.
This means that it is not only one of the lowest stock floats in the region, but also one of the lowest in the junior gold exploration market at large.
To Recap
It appears that Clarity Gold Corp. has been assembling all of the right pieces to build a compelling story in 2021. With the Destiny project, a strong advisory board, a management team that has proven it can execute, and a tight share structure of approximately 28 million shares outstanding, this is a company you want to keep a close eye on.
- Clarity Gold’s transformational acquisition with the Destiny Project located in the Abitibi Greenstone Belt with high-grade intercepts and a historical estimate to advance from.
- Advisory board with 100+ years of strategic leadership experience, focused on growth of companies such as Aftermath Silver, SNC, RIO Tinto, Pan American Silver and Kaminak Gold
- Tight share structure with about 28 million shares issued and outstanding
- Well Financed with $8.3million raised through two private placements. First raise generated $4.5million at $.96 and the second brought in $3.8million of flow-through units at $1.85.
- Awaiting Assays from the lab for remaining 8000+ metres.
Highlights of the Destiny Project
- Located in the historical, mineral rich Abitibi Greenstone Belt.
- Gold mineralization occurs in high-grade quartz veins within shear zones starting at 15 m below surface(drill results include 167g/t Au over 1 m, 6.15g/t Au over 23.6m, 19.49g/t Au over 2.7m, 90.3g/t Au over 1m).
- Mineralization is open to depth and along strike.
- The DAC deposit is open along strike with only coarse drilling denoting high grade intercepts outside of 2011 resource area showing expansion potential along strike from the DAC Deposit over approximately 2.5 km to the Darla Zone.
- Excellent infrastructure: ~75 km NNE of Val d’Or with road access.
- Considerable work done to date including over 60,000m of diamond drilling
You might want to keep an eye on Clarity Gold Corp. (CSE: CLAR | OTC: CLGCF).
Sources:
https://claritygoldcorp.com/corporate/management-team/
https://finance.yahoo.com/news/clarity-gold
https://finance.yahoo.com/news/amex-drills-102
https://finance.yahoo.com/news/amex-drills
https://finance.yahoo.com/news/osisko-windfall
https://finance.yahoo.com/news/starr-peak-reports
https://finance.yahoo.com/news/clarity-gold-closes
https://finance.yahoo.com/news/clarity-gold-closes
https://www.nrcan.gc.ca/our-natural-resources
https://www.visualcapitalist.com/
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