By Kaiser Research Online | John Kaiser
Endurance Gold Corp keeps delivering positive results for the Reliance gold project in southern British Columbia but is not getting any market upside from results even on a day when gold jumped up a lot and most stocks whether focused on gold or not were up. The problem is that Endurance is building its understanding of the Eagle-Eagle South Feeder system through incremental stepout and infill drilling which do not deliver no-brainer discovery holes, at least not yet. They have reported only half the holes drilled and there are only3-4 left before they pause to wait for assays to catch up. The next batch of holes will be downhill at the northwestern end of the Royal-Treasure shear corridor, starting to fill in the gap between the original Imperial zone and Eagle. If these are good the market will be surprised and it would become the focus of lower elevation winter drilling. The really important batch will be #47-54 which are 100-150 m stepouts uphill to the southeast of the structural corridor. If these are positive it would give Endurance a strike of 400 m to infill within which there appear to be multiple parallel quartz veins which themselves are barren but their flanks attract gold like barnacles on pier pilings. There is even a hint that the structural corridor is much wider than 300 m suggested by the Royal and Treasure faults. The hanging wall to the southwest are unrelated argillite sediments appropriately colored gray. This appears so be a somewhat low angle post mineral fault. We should get the final assays by the end of November which will kick off a fund-raising effort because Robert Boyd is the wise sort of CEO who watches the company’s bank account. The implied outcome chart shows a fair value outcome of $1.7 billion or $11.20 per share based on $64.3 million implied value which needs a medium to high grade outcome of 3-4 million ounces gold to justify. I don’t see the mineralized tonnage footprint yet so it means that this discovery delineation stage project is in S-Curve territory. But if we assume the implied value represents peak S-Curve valuation, the projected outcome is only $86 million or $0.56 per share which is also equivalent to a bust. I see at least a $300-$500 million future outcome value emerging from the current mineralized system footprint, so Reliance still has a lot of S-Curve upside potential. What it needs is an intersection longer and richer than anything so far reported to ignite the market’s animal spirits. Endurance might, however, get help in Q4 from its rare earth Bandito project in Yukon. This summer the company carried out a LIDAR survey which reveals subtle topographical variations. Although the host target is a large “red” syenite intrusive body that fractionated niobium and rare earth metals to a level that has created quite an interesting geochemical anomaly over the southeastern half that has been soil sampled, field workers did find outcrop or at least big boulders from which they took grab samples. One of these at the northern limit of the sampling grid kicked 3.491% TREO grade, which is not that interesting (the metasomatized fenite structures to the southwest of the red syenite kick that high), but this heavy rare earth component was 76.7% which is very unusual. The tonnage footprint of this intrusion is over 500 million tonnes to a depth of 200 m, so the exploration question is, does this body contain any structural zones where grade enrichment over meaningful tonnage volumes took place? Such structures may either weather recessively, or the opposite, like pegmatites, sticking out like subtle ribs. The LIDAR survey may just deliver topographical noise, but if there are any linear structures that correlate with elevated TREO-Nb values in the soil sample grid, CEO Robert Boyd will have a hard time maintaining a serious demeanor. This Bandito system could become a heavy rare earth monster, and while its location looks as remote as Strange Lake, the world’s biggest and richest HREO enriched deposit, it is actually very close to British Columbia’s all-weather road network. In 2023 Endurance could rocketing with dual gold and rare earth thrusters.
Endurance Gold Corp (EDG-V) Bottom-Fish Spec Value