The Gold Report - Thu, Apr 24, 2018

A Canadian Precious Metals Play Acquiring Property in Prolific Mining Camp

A Canadian precious metals mining company recently announced its newest acquisition, as well as 2018 drilling plans for its other major projects.

Golden Ridge Hank Project

Golden Ridge Resources Ltd. (GLDN:TSX.V), a precious metals explorer located in Canada, has announced its newest acquisition of a gold project in British Columbia.

Before diving into that, let's take a quick recap of its current developing projects.

Hank Property

One of Golden Ridge Resources' biggest projects is located right in the Golden Triangle in British Columbia. This area includes some of the highest-grade metals in the world. Golden Ridge's Chair Larry Nagy was part of the discovery team at both the Eskay Creek, Canada's highest-grade gold mine, and Snip, another high-grade mine in the Golden Triangle.

"Golden Ridge is an attractive gold-silver speculative play." - Clive Maund, CliveMaund.com

In October 2017, a Streetwise Reports article noted, "the company has an option to earn 100% interest in the Hank gold-silver-copper property in the Golden Triangle in northern British Columbia. This area is home to large deposits, such as Pretium's Brucejack and Seabridge Gold's KSM project."

Recently, the company has shared more details on its progress with the Hank property. According to its initial contract in 2013 with Barrick, Golden Ridge has over four years to conduct $2 million in exploration (subject to a 2% NSR). With the first three years of the terms fulfilled, Golden Ridge is approaching its final year in 2018. (See the table below.)

Hank Property Agreement Option Schedule

Date

Exploration

Cash Payment

Share Issuance

December 2015

$100,000 (COMPLETED)

-

-

December 2016

$200,000 (COMPLETED)

-

-

December 2017

$700,000 (COMPLETED)

-

-

December 2018

$1,000,000

(90% COMPLETE)

-

-

TOTAL

$2,000,000

NIL

NIL

The company shared its 2017 drilling highlights for the project, which included one section that "intersected a buried intrusion with a mineralized contact zone grading 7.04g/t AuEq over 21.62m. The intrusion likely represents one of several causative mineralizing intrusions at depth."

Golden Ridge also came across an anomaly in the Williams Zone section of the Hank property. The company stated, "hand trenching and stripping of a copper-in-soil anomaly in 2017 resulted in a significant new alkalic porphyry Cu-Au."

Management believes it has found the center (400-meter-diameter bullseye) of a porphyry copper system right in the Williams Zone.

In late 2017, the company did construct a drilling pad on the Williams Zone. Due to low seasonal stream flow, however, Golden Ridge postponed drilling until the summer of this year.

Depending on the initial results, "up to 15 additional drill pads may be utilized to delineate the entire magnetic anomaly."

For 2018, Golden Ridge plans to drill over 8,000 meters on five highly prospective targets on the Hank project.

Newest Acquisitions and Options: Royalle Property and North Canol Property

On April 25, Golden Ridge announced that it signed an option agreement whereby it can acquire 100% of the Royalle property located in Bralorne, "British Columbia's most prolific gold mining camp."

The complete acquisition is contingent upon Golden Ridge "issuing 480,000 common shares and $160,000 in cash to the property vendors and by incurring exploration work on the property of $580,000 over the term of the agreement [four years]."

"It's a project that we can work all year around," said Mike Blady, president, CEO and director of Golden Ridge.

For fall 2018, the company plans to test targets hidden beneath alluvial valley cover, giving the company year-round drilling-related news flow.

Mike Blady also added, "Recent geophysical surveys have confirmed that the regional structures responsible for gold mineralization at the Bralorne mine (produced >4.15M ounces of Au) continue onto the property."

Not only is Golden Ridge acquiring deals, but it's also optioning them out.

Golden Ridge recently optioned out its 13,200 Ha. North Canol Ag-Pb-Zn property to Fireweed Zinc Ltd. for an aggregate of $500,000 cash and 450,000 common shares. Golden Ridge initially acquired this silver, lead, and zinc project in 2011.

The project was re-evaluated again in 2017, finding highly anomalous cobalt values (up to 960 pmm), according to Golden Ridge's April 2017 corporate presentation.

Long-Term Stock Performance

Clive Maund rated Golden Ridge stock as a "sleeper" in March. Looking at the stock's performance over an 8-year period, he argued that the stock traded at much higher prices in the past.

"Golden Ridge is an attractive gold-silver speculative play here, that has the potential to take off higher suddenly on positive drill results. . .it is very difficult to predict exactly when it will take off higher, although January's drilling results do suggest that it could be sooner rather than later"

The company says it's extremely undervalued relative to peers, trading at a current market cap of only $10.27 million (May 15, 2018 closing price), with approximately $4 million in cash in the treasury.

Disclosure:
1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources and Seabridge Gold. Click below for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Golden Ridge.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Ridge, a company mentioned in this article.

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