The Fenelon Gold Camp is Heating up! Why Investors are Taking Notice of Great Thunder Gold (CSE:GTG)
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Adjacent to Wallbridge Mining’s Fenelon Gold Project, Great Thunder Gold Readies to Start Drilling
Great Thunder Gold (CSE:GTG) (OTC: GTGFF), is a junior exploration and development company listed on the Canadian Securities Exchange and OTC markets. Great Thunder Gold Management is focussed on creating shareholder value through the advancement of their district-scale gold and lithium projects in Quebec. The Company recently upped its ante with acquiring thousands of hectares of additional land, and land given by the CEO.
The old adage goes along the lines of, “If you want to hunt big game, you go where big game has been seen before.” If game was gold, the place to be is the Abitibi Greenstone Belt in eastern Canada. Yielding about 180 million ounces of gold since the first discoveries were made over a century ago, the Abitibi is home to dozens of mines with more on the horizon in one of the world’s most prolific gold regions.
A Sample of Investment Activity in Abitibi
Owing to its large economic deposits, the belt has the subject of merger and acquisition activity in recent years. For example, in 2014, Yamana Gold (TSX: YRI)(NYSE: AUY) and Agnico Eagle Mines (TSX: AEM)(NYSE: AEM) partnered to buy Osisko Mining (TSX: OSK) for C$3.9 billion for the main prize of the Canadian Malartic mine, fending off Goldcorp, which also wanted the mine. In November, Kirkland Lake Gold (TSX: KL)(NYSE: KL) shelled out C$4.9 billion to acquire Detour Gold, giving it control of the Detour Lake mine containing 15.6 million ounces of gold in the Fenelon gold camp. In March 2020, Wallbridge Mining (TSX: WM)(OTCQB: WLBMF) paid $110 million in stock to acquire Balmoral Resources, expanding its footprint by consolidating its Fenelon gold property.
The area also happens to be a primary area of focus of Canadian mining legend and billionaire Eric Sprott, who had tremendous success in the development of Kirkland Lake. Recently, he’s poured hundreds of millions of dollars back into exploration projects in the area hoping for similar successes from other emerging projects. As written by The Financial Post, in the spring of 2019 Sprott began to heavily invest somewhere between $200 and $300 million in a matter of just a few months.
This is, of course, against the backdrop of gold printing an all-time high at US$2,089 per ounce in August.
One of Sprott’s investments is in Great Thunder Gold (CSE: GTG)(OTC: GTGFF), which has been quietly amassing a portfolio of projects in the Abitibi surrounded by discoveries, mostly being adjacent to the properties of Wallbridge Mining. Sprott’s affinity for the Fenelon Gold Camp is evident through his 15% stake in Great Thunder Gold, as well as his holdings in Wallbridge and Balmoral equating to a 20% ownership of the combined company, which now has a market capitalization over C$700 million.
Large Land Package Next to Fenelon Deposit
Great Thunder Gold’s management was methodical when it began quietly amassing its land position in the Fenelon gold camp in February of this year, first optioning the Northbound Property covering 1,162 hectares adjacent to Wallbridge’s project. In March, the Northbound Property Extension was added to the portfolio, expanding the holdings by another 1,582 hectares. Then in April, the company penned a letter of intent and completed it to acquire the 11,000-hectare Southern Star property 6.5 kilometers south of Wallbridge’s Fenelon/Tabasco deposit.
The portfolio got a bit bigger in July when incoming CEO Blair Naughty added some of his personally owned claims covering 332 hectares contiguous with the Northbound and the Northbound Extension to the company for just $1. Fair to say, Naughty’s selling the property for $1 speaks to his commitment to the project.
All told, Great Thunder now controls 15,231.47 hectares in the area, making it one of the largest landholders adjacent and on-trend to Wallbridge’s project.
Great Thunder Gold’s management was methodical when it began quietly amassing its land position in the Fenelon gold camp in February of this year, first optioning the Northbound Property covering 1,162 hectares adjacent to Wallbridge’s project. In March, the Northbound Property Extension was added to the portfolio, expanding the holdings by another 1,582 hectares. Then in April, the company penned a letter of intent and completed it to acquire the 11,000-hectare Southern Star property 6.5 kilometers south of Wallbridge’s Fenelon/Tabasco deposit.
The portfolio got a bit bigger in July when incoming CEO Blair Naughty added some of his personally owned claims covering 332 hectares contiguous with the Northbound and the Northbound Extension to the company for just $1. Fair to say, Naughty’s selling the property for $1 speaks to his commitment to the project.
All told, Great Thunder now controls 15,231.47 hectares in the area, making it one of the largest landholders adjacent and on-trend to Wallbridge’s project.
Fully Funded
Great Thunder Gold is getting support from accredited investors looking to get a piece of the company ahead of drilling. On July 23, 2020, a C$2.6 million non-brokered private placement was announced, which included Eric Sprott adding another 600,000 shares to his position. A week later, the capital raise was increased to C$3.7 million due to demand.
In the capital raise, GTG sold units (one common share and 1/2 of one warrant) for $0.65 each. The warrants are good for just two years to purchase an additional share for $0.85. Shares are currently trading around 74 cents, which certainly can be interpreted that investors are anticipating much higher prices in the future.
The company has maintained a tight share structure (34.4 million shares fully diluted) and has not assumed any serious debt or warrant overhang. Great Thunder has a small market cap (Approximately 18 million CAD) comparatively to their neighbours Balmoral Resources ($79.39 M CAD) and Wallbridge Mining Corp ($396.42 M) and has large strategic land holdings in this hot area of approximately 7,000 hectares. Great Thunder Gold could offer incredible potential for profit for investors, as they are just getting started.
To The South Too
The new Southern Star project doesn’t get all the clamoring because of the prospect of the northern properties, but there is hidden value here in the relatively unexplored property. It is already known that the Bapst Fault runs through part of the property and that there was a historical silver intercept along the fault of 5.6 g/t silver over 1.4 meters and 5 g/t silver over 1 meter.
Again, benefiting from neighbors, a recent airborne survey conducted by Midland Exploration has identified conductor anomalies. Further, there are two additional distinct electromagnetic targets located on the property covering 11 kilometers along the extension of the Lower Detour Fault.
The Southern Star was also part of the recently completed airborne survey with the data currently being analyzed.
Disclosure:
1) Kelly Abbott compiled this article for Great Thunder Gold and provides services to as an employee. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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