FREE

ETU: Commences 2023 Field Program

What you need to know:
• ETU has commenced its 2023 field exploration program at Hawkins.
• Grid 3 mapping is almost complete and will bring it to a drill ready status in the near term.
• Hawkins is a massive land package and the Company is utilizing modern technology to inexpensively and systematically understand where the mineralization lies and determine high-priority drill targets.

Yesterday, E2Gold Inc. announced it has commenced its 2023 field exploration program and has nearly completed Grid 3 mapping, bringing it to drill ready status. The Company plans to execute its 2023 field exploration program on targets generated by soil geochemistry and geophysics in collaboration with regional artificial intelligence and structural interpretation on the broader Hawkins Project. We are maintaining our BUY rating on E2Gold Inc. with a target price of $0.10/share.

Grid 3, which is described in more detail in our initiation report here, is west of the McKinnon Zone, where geologists are examining several combined geophysical and soil anomalies. Beyond the presence of gold, many of these anomalies have the potential for copper-nickel discoveries (Figure 1). The figure also highlights that the McKinnon deposit as well as several gold anomalies lie along the contact of the Amphibolite and Granitic Rocks. This contact extends for over 20km, well beyond what has been tested so far and shows the potential for significant growth to the McKinnon Zone. Following the testing of Grid 3, the team will progress to more distal areas of the 80km long project. The objective is to develop a pipeline of highly prospective areas for future drill programs to properly explore this district scale property.

Investment Thesis Rehash
A dominant foothold along Ontario’s Porcupine-Destor Fault. ETU’s projects span >70,000 ha, making it amongst the largest landholders in one of the most mineral-endowed regions globally (within 300km of 13 operating mines hosting >40Moz).

Both Projects with Historical Resources. Both of ETU’s projects have historical resources, a strong indicator for resource growth, and greater potential for future discoveries as the ground is already proven to be mineralized.

Exceptional Accessibility and Infrastructure. Both projects have exceptional access to infrastructure, being proximal to the trans-Canada highway, railways, power, and water. Both Projects are accessible year-round.

Strong Team and Backers. E2Gold is led by a team of renowned geoscientists, which is ideal when exploring a land package of this size. The Company is also supported by Kinross (K:TSX) and Crescat Capital who each own 10%.

Trading at a fraction of peers. ETU trades at a fraction of its peer group on an EV/ha basis despite being in one of the most prospective regions in the province and having proven strong mineralization. ETU trades at $58/ha versus peers at $272/ha.