Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

April 22 2021, 19:36 GMT+01:00

Evergold Corp

  • Shares Outstanding: 35.7M
  • Share price C$0.35 (06.04.2021)
  • Market Cap: C$12M

Evergold is a British Columbia-focused mineral exploration company that was founded in late 2015. The company consists of 4 fully-owned properties and is primarily a Gold and Silver exploration company but they have also found reserves of Copper during their exploration at the Saddle Gold site.  

We met with Kevin Keough, CEO, Evergold. He is an expert geologist along with several years of experience in investment banking. Kevin is a majority shareholder at Evergold. Kevin also founded the GT Gold Corporation. The GT Gold Saddle discovery commenced operations in 2017, which was recently acquired by Newmont for $400M.

Company Overview

Evergold is a metal exploration company that is mainly focused on Gold and Silver extraction in northern BC. Their project is situated in the Golden Triangle, and Toodoggone, north of Benchmark's project. Evergold was established by Kevin Keough and he led the exploration along with Charlie Greig. Evergold announced the grant of stock options on March 29, 2021.

The team has is responsible for major discoveries including the 16Moz 'Saddle' gold-copper discovery in northwest B.C. The company went public in late 2019 and its flagship assets include the Snoball and the Golden Lion project.Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

Evergold's Flagship projects

The Snoball project is located in British Columbia's Golden Triangle region, while the Golden Lion is situated in the Toodoggone region of British Columbia. The Snoball project is a challenging terrain as it's located on a mountain top. The weather conditions are adverse, which leads to a drop in levels of productivity, however, the company's track record has been strong with challenging mining operations.Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

During their Saddle GT project, the company delivered promising results during phase 1 and this resulted in healthy financing options for phase 2.

The Golden Lion is a remote property, but Evergold was successful in establishing a camp here. This property is spread across a 5,099ha area which boasts a near-surface epithermal gold-silver system. The company currently has 33% institutional ownership of the property. a rare for a micro-cap company in its early stages. The company has successfully executed phase 1 of its flagship projects and is currently looking to jumpstart phase 2.

The Golden Lion property has shown the prevalence of 100m broad and 500m long gold-silver bearing epithermal vein zone which features bulk tonnage-style grades near the surface. The company has allocated $1.5M each to their flagship projects which are expected for a 2,500m drill.Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

They also started operations in Nevada called Rockland. this property features strong reserves of Arsenic and Antimony along with trace elements of Gold, and Silver. The company has allocated $400,000 funding for this exploration project as the early analysis has shown promising samples below the surface. These 3 properties primarily feature epithermal systems which feature high-grade Gold and Silver.Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

Evergold is also working on a developing project called the GL 1 North Ridge, which is a grass-covered ridge that has shown high-grade reserves of Gold and Silver, along with other trace elements. The soil sampling has demonstrated up to 15g/t gold reserves.

Operational Challenges faced at Snoball project

Harsh weather and terrain conditions made it challenging to work consistently. The drilling would frequently be needed to be halted due to the weather conditions, which would reduce the overall productivity by half. The heavily weathered rocky terrain also poses drilling challenges.

Capital Management

Evergold was able to raise finances amounting to $8M, and after factoring in the fees and overheads, the company currently has $7.5M in liquidity, out of which they plan to allocate $1.5M each towards drilling at Snoball and Golden Lion projects. This amounts to specific drilling targets on both properties with around 2,500m of drilling. Meanwhile, $400,000 is assigned towards exploration at the Rockland property in Nevada.

They have set aside $100,000 monthly for their operations and marketing budget. The remainder of $2M will be allocated based on the results of the ongoing exploration projects.

Resource Allocation Strategy

Evergold plans to allocate the majority of the raised capital in their flagship Snoball and Golden Lion projects, with an investment of $1.5M in each.

Evergold was able to locate high-grade veins at Pyramid Peak at their Snoball property. The company expects to uncover better widths and grades as compared to the previous year.

The company has already concluded the geological analysis and soil sampling at the Golden Lion property. They are currently targeting the core of the epithermal system that lies beneath the surface.

The Rockland deal was finalized as a 5-year deal with periodic multi-million dollar cash payments. This property is easier to work with because Nevada doesn't feature the weather challenges akin to northern BC, making it possible to run the project year-round. It features a significant Gold zone which is drilled up to 800m by BHP and Newmont. This property features promising reserves of Arsenic, Antimony, Gold, and Silver. Evergold plans to start drilling within the next year. 

Major developments on the horizon

The drilling is scheduled to commence on the Golden Lion property by 15th June 2021 and 25th June for Snoball. The company is working with the same contractor for both sites, which streamlines the overall operations, paving the way for a collective strategy and reduced overheads.Evergold Corp (EVER) - $8M Raise to Chase High-Grade Gold & Silver

They plan to drill and carry out lab sampling at Golden Lion, they will await the results and meanwhile start drilling at the Snoball. This is a great way to efficiently utilize the existing resources, especially during favorable weather conditions.

To learn more, visit the Evergold Corporation website.

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