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• ETU’s land package remains one of the largest (681km2) and most prospective in Ontario, sitting in a top mining jurisdiction in the world spanning 80km along the Porcupine-Destor Fault hosting >100Moz Au.
• The Company has laid out its 2024 exploration plans, highlighting a new focus to high-grade gold showings along the eastern extent of the Hawkins zone – a high probability target for resource growth.
• ETU remains to be one of the cheapest stocks and hosts one of the largest land packages amongst junior explorers.
In March, E2Gold Inc. announced its 2024 exploration program which focuses on the high-grade gold and base metals discoveries found during the 2023 fieldwork program. The Company plans to perform a shallow-level drill program to test the never-before-drilled area. The mineralized occurrences were found up to 200m north and 3.5km east along trend with the existing McKinnon Zone Inferred Resources. This area, as well as the proposed drill targets, can be found in Figure 1. The Company also plans to continue with surficial exploration work in this area and continue further east along strike. We are maintaining our BUY rating on E2Gold Inc. with a target price of $0.10/share.
ETU is currently in the process of raising $1.0M in a private placement consisting of hard dollar units priced at $0.025/share and flow-through units priced at $0.03/share. Each hard dollar unit consists of one common share and one warrant at an exercise price of $0.05/share expiring after 24 months. We note to readers that the above 2024 exploration program is contingent on the raising of these funds and that if less is raised, the Company may scale back the drilling component of the program.
Investment Thesis Rehash
A 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. The Hawkins Project hosts a NI43-101 compliant historical resource of 329 Koz @ 1.65 g/t Au and the Band-Ore Project hosts two non-compliant historical resources combining for a total resource of 251 Koz at an average grade of 5.92 g/t Au.
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 proven strong mineralization. ETU trades at $89/ha versus peers at $170/ha.
ETU: Company Update & 2024 Exploration Program
What you need to know:• ETU’s land package remains one of the largest (681km2) and most prospective in Ontario, sitting in a top mining jurisdiction in the world spanning 80km along the Porcupine-Destor Fault hosting >100Moz Au.
• The Company has laid out its 2024 exploration plans, highlighting a new focus to high-grade gold showings along the eastern extent of the Hawkins zone – a high probability target for resource growth.
• ETU remains to be one of the cheapest stocks and hosts one of the largest land packages amongst junior explorers.
In March, E2Gold Inc. announced its 2024 exploration program which focuses on the high-grade gold and base metals discoveries found during the 2023 fieldwork program. The Company plans to perform a shallow-level drill program to test the never-before-drilled area. The mineralized occurrences were found up to 200m north and 3.5km east along trend with the existing McKinnon Zone Inferred Resources. This area, as well as the proposed drill targets, can be found in Figure 1. The Company also plans to continue with surficial exploration work in this area and continue further east along strike. We are maintaining our BUY rating on E2Gold Inc. with a target price of $0.10/share.
ETU is currently in the process of raising $1.0M in a private placement consisting of hard dollar units priced at $0.025/share and flow-through units priced at $0.03/share. Each hard dollar unit consists of one common share and one warrant at an exercise price of $0.05/share expiring after 24 months. We note to readers that the above 2024 exploration program is contingent on the raising of these funds and that if less is raised, the Company may scale back the drilling component of the program.
Investment Thesis Rehash
A 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. The Hawkins Project hosts a NI43-101 compliant historical resource of 329 Koz @ 1.65 g/t Au and the Band-Ore Project hosts two non-compliant historical resources combining for a total resource of 251 Koz at an average grade of 5.92 g/t Au.
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 proven strong mineralization. ETU trades at $89/ha versus peers at $170/ha.
Underlying
E2GOLD INC
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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