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Explor Explores the AbitibiBob Moriarty Explor Resources (EXS-V) has a major gold project in the heart of the Timmins-Porcupine Mining Camp in the Abitibi Greenstone Belt. This camp has been responsible for the production of over eighty million ounces of gold over the past century. Their flagship property, the Timmins Porcupine West target bears significant similarity to the nearby Hollinger-McIntyre Mine with past production of over thirty million ounces of gold. In December of 2014 Explor optioned 55% of the TPW project to Teck Resources (Teck) for an exploration commitment of $8 million Canadian by May of 2019. That infers a value of about $14.55 million for the entire project. If you multiply that number by the remaining 45% controlled by Explor you realize that given today’s share price of $.07 times the number of shares outstanding less the cash on hand, Explor management could sit back, smoke a Cuban stogie while sipping an icy cold gin and tonic since there literally is zero risk to the stock at $.07 a share. Since the current resource at TPW is 1,079,000 ounces of gold, EXS owns 45% or about 485,000 ounces. The market values those ounces today at a tiny $12 an ounce in one of the leading gold camps in the world. That’s pretty cheap. Those ounces should be valued at $25-$40 an ounce at this stage of exploration. In addition, Teck has the right to increase their position in TPW an additional 15% by spending another $4 million Canadian once their first option has been fulfilled. If 15% is worth $4 million, then the remaining 30% EXS will hold is worth $8 million. All these numbers are higher than today’s market cap and totally ignore all the other projects Explor is working on today. The TPW project has the potential for being one of the largest gold projects in Timmins. Mineralization has been found over a 2,000-meter strike length. The mineralized area is up to 1500 meters in width and potentially 1000 meters deep. Typical mines at Timmins have an average strike length of 350 meters. The last 43-101 was released in August of 2013. Since Teck began exploration, they have focused on doing the basic background work and relogging existing core. Teck is the operator on the TPW project and completed 5 core holes in 2015 targeting five new zones outside the West Deep Zone in a 4,700-meter core drill program. All holes returned gold mineralization. Meanwhile, Explor continues to advance their other mineral programs. The Ogden project is immediately to the east of TPW. Explor began a 3,000-meter drill program on the Ogden property in March of 2016. Holes 02 and 05 showed gold mineralization of 2.06 g/t over 1.50 meters and 1.99 g/t gold over 1.80 meters. Those results could be considered of technical interest but hardly barn burning. Explor continues to work on their other projects in Ontario and New Brunswick but naturally of highest interest to investors would be the TPW project. If an investor is looking for a low risk option on the price of gold, the TPW project through Explor would be interesting. The shares climbed as high as $.24 in March as interest in gold resource companies got hotter but have declined to as low as $.065 lately which is as low as the shares have been all year. The shares are very low risk at these prices. Explor is an advertiser and I am biased. I do have a bid in to buy some shares should they drop just a little. From a technical point of view, the company is highly regarded and well staffed. They are not very good at communication and that has a lot to do with their share price. That’s bad for them but good for you and me. There is great opportunity there at a low risk. Do your own due diligence. Explor Resources Inc ### Bob Moriarty 321gold Ltd |
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