Company: Avidian Gold
Chairman, CEO and President: David Anderson
Markets: TSXV: AVG
Market Cap (09/09/19): 16,296,346
Share Price (08/16/19): $0.20
52-week high/low: $0.68/$0.09
Avidian Gold (“Avidian”) is an advanced stage exploration company with two gold projects in Alaska and a gold-copper project in Nevada. Avidian’s experienced board and management team has a track record of creating wealth for shareholders by pursuing a clear business model: exploration, discovery and sale. David Anderson the Chairman and CEO was part of the leadership team that founded QGX Limited, which sold for CDN$260 million in 2008, and Antares Minerals Inc., which was sold for CDN$650 million in 2010.
“The team invested in a number of very advanced properties at a time when nobody wanted gold.”
Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club
“The key to our success includes significant insider investment, the right properties in friendly jurisdictions and a management team with combined technical and business acumen that has had success in discoveries and subsequent sales,” says Anderson. “This isn’t our first rodeo… we’ve been here before. Success in the past through the sale of two previous junior exploration companies has brought in nearly CDN$1 billion for shareholders. We’re in the process of implementing the same business plan for Avidian.”
Maximizing shareholder wealth through investment in gold
Avidian has two wholly owned advanced stage gold exploration properties in Alaska: Amanita and Golden Zone. Both district scale properties are located in the Tintina Gold Belt that has a history of producing multi-million-ounce deposits. Alaska is a mining friendly jurisdiction that is ranked fifth worldwide for mineral potential and tenth for investment attractiveness by the Fraser Institute in its Annual Survey of Mining Companies.
Amanita is 25 kilometres NE of Fairbanks and adjoins the Fort Knox gold mine property which is owned by Kinross Gold Corporation. The Fairbanks mineral district has produced more then 20 million ounces of gold from placer and hard-rock sources. Amanita hosts the Tonsina mineralized trend which is the same trend that hosts the Fort Knox gold mine. Fort Knox has an annual gold production of approximately 380,000 ounces of gold at an average grade of less than 0.4 g/t Au. The area of interest at Amanita lies within a 2 km x 3 km gold in soil anomaly. Historical drilling indicates 30 of 39 drill holes intersected >1.0 g/t Au over widths ranging from 1.5 to 23 metres from essentially surface to a depth of less than 120 m. The holes were drilled over a 1.6 km strike length and only partially tested the mineralized Tonsina Trend.
Golden Zone is a 105 square kilometre property, 16 kilometres west of the main highway between Anchorage and Fairbanks. Avidian is exploring multiple, large footprint gold targets along a 15 kilometre mineralized trend on the property. The Breccia Pipe Deposit which is located on this trend hosts a 2016 NI 43-101 indicated resource of 267,400 ounces Au and 1,397,800 oz Ag (4,187,000 tonnes at 1.99 g/t Au & 10.38 g/t Ag) and an inferred resource of 35,900 oz Au & 111,400 oz Ag (1,353,000 tonnes at 0.83 g/t Au & 2.56 g/t Ag). The deposit is located on an existing mining lease and is amenable to open-pit mining. Avidian has identified additional gold mineralization immediately adjacent to the Breccia Pipe Deposit with potential to expand the resource base.
In Nevada, Avidian’s wholly owned Jungo property hosts a five-kilometre long copper-gold system with several high priority targets already identified for drilling.
“It’s becoming more difficult to find gold deposits which means larger mining companies are looking to the juniors for new resources to replace reserves,” Anderson says, adding that he believes we’re entering a continued bull market for gold.
“The team invested in a number of very advanced properties at a time when nobody wanted gold. Avidian purchased properties when gold prices were in the $900 range,” says Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club. He picks stocks for the Richmond Club Index, which has averaged a return of 20% per year over the last 15 years.
Beckett says investors should get in on Avidian stock now because:
- The management team is a small group of highly experienced professionals with an impressive track record in both discoveries and sales. Anderson was involved in the QGX and Antares deals which together brought in nearly CDN$1 billion for shareholders.
- Avidian’s 100% controlled properties are all located in mining-friend jurisdictions within prolific gold endowed mineral belts, which Anderson says is key to achieving the best returns for investors.
- The advanced exploration properties are located in known gold belts with a history of producing multi-million-ounce deposits. The leadership team believes it can add to the ounces that are currently delineated at the Golden Zone property as well as outline new ounces on its Amanita property, both in Alaska. “The properties are well placed within the Tintina Gold Belt that has historically delivered 130 million ounces of gold. Now is a good time to purchase our stock as we are going to be very active in the next few years,” concludes Anderson.
- Avidian is also in the process of creating additional shareholder wealth through the spin-off of its Canadian gold and base metal assets into High Tide Resources Corp (“High Tide”), a private company controlled by Avidian. High Tide properties are being advanced without diluting core assets in Avidian. The company recently acquired an option to earn a 100% interest in a potentially large iron ore deposit located in the heart of the Iron Ore Belt of Labrador and close to existing infrastructure. Timing is right as the iron ore market has been strengthening in the past year. High Tide’s objective is to aggressively advance these assets and monetize High Tide, either through a sale or go-public event in the next 24 months.