Idaho Champion Gold Mines (TSX-V: ITKO) – The Champ is Here and Ready to Run
Share Price: C$0.20
Shares Outstanding: 36.5M
Market Capitalization: C$7.3M
Some of the best mining projects lay dormant for centuries.
This is the case with the Baner gold project. . .
The project’s been held by a single entity since the claims were first staked in the late-1890’s.
And while the mine has reportedly produced both 54.6 ounces of gold and 144.2 ounces of silver from 60 tons between 1939 to 1940 – the project has seen almost zero exploration since.
But the huge potential of the Baner gold project has always been there.
Let’s review its recent history. . .
It became the pet project of Dr. Wagner – formerly the Dean of Geology at the University of Idaho – who used the Baner project to teach his students.
And, in turn, had his pupils collect six samples from the project’s exposed quartz veins – averaging 22.8 grams per ton gold – and 390 underground channel samples from nine of the Baner Mine’s tunnels – which were mined in the 1920’s with an average grade of 1.9 grams per ton.
These were exciting early results. . .
Dr. Wagner’s own words show this from a report published in 1946:
“From the standpoint of location, the Baner Mine appears to be almost perfect. The proven mines of the entire region lie in the vicinity of this property.”
Wagner estimated 75 million tons bounded by the area he sampled – or a back-of-the-envelope calculation of 4.56 million ounces of gold.
Now, that’s a massive amount of potential gold.
This is why the Baner project has all the traits to be a great exploration asset and a successful mine.
And after sifting through dozens of projects – it topped Jonathon Buick’s list.
Who’s Jonathon Buick?
He’s a serially successful mining financier that spent years searching for a project to hang his hat. He’s also raised over $400 million for resource companies in the past but was ready to take on the Baner project personally.
The Baner Mine passed all his technical team’s tests. But what made it even more compelling was ‘Crooked Creek’ – just north of the Baner Project and has produced 1.5 million alluvial ounces between 1905-1906.
So, in 2016, Jon was finally able to option Baner from its owner. And in November 2016, the last payment was made – giving Idaho Champion Gold Mines (TSX-V: ITKO) 100% ownership of the property and free of any NSR’s (royalties).
Idaho Champion then staked 62 more claims surrounding Baner in November 2016 – and another 136 in November 2017. . .
The deposit type at Baner is mostly lode-type with shear hosted gold along the Orogrande Shear Zone, as well as quartz vein hosted gold and silver mineralization that is intrusion associated.
Mineralization at Baner has been compared to the Lises Zone at the Pogo Deposit in Alaska – a 4.1 million ounces gold project recently acquired by Northern Star for US$260 million.
This represents the opportunity for a high-grade quartz system related to granite intrusions. This is comparable to the low-sulphidation, sheeted system at Fort Knox – which hosts 2.3 million ounces of gold.
The Orogrande Shear Zone is key to the mineralization of this area. And the zone passes through – or close to – the Idaho Champion claims. . .
As a private company, Idaho Champion completed an IP-survey and some geo-chemistry.
And as a publicly listed company, Idaho Champion isn’t going to make investors wait for high-impact news. . .
The company’s already drilled 12 holes and is working on the 13th.
Idaho Champion also has two more projects – the Champagne project and cobalt properties.
Similarly to Baner – Champagne is a past producing mine (between 1990-1993). The project hosts Midas-type, high-grade gold and silver epithermal systems. The property has a historical resource of 2.3 million tons at 1.2 g/t gold-equivalent ounces which was delineated from over 100 RC drill holes and 1,500 trench channel samples.
Idaho Champion also has cobalt properties in their war chest. The claims are staked near eCobalt and US Cobalt – the latter which was recently acquired for C$149.9 Million by First Cobalt.
The Champ Making News
Idaho Champion has thirteen assays coming out.
The geology here intrigues us, and we like the idea that we do not have to wait for some hard-hitting news. At a $7.3 million market cap, it’s a pretty enticing investment.
The company also plans on a follow-up drill program of 15 holes over 5,000 meters.
Out of the 36.5 million shares outstanding, 24 million are locked-up. This will make any sort of good news really reflect in the share price – and in a big way.
Idaho Champion also plans on doing field work at Champagne.
The company plans on mapping, sampling, and reviewing historical data at the Cobalt properties. Idaho Champion plans on applying to drill by Q3/2018. As Jon explains it, the Cobalt properties are a great safety net, with many ways to monetize.
Jon’s made it very clear he wants to drill and make a discovery. And as resource investors, we hedge our risk as much as we can.
But in the end, we also really want the ‘home run’.
Idaho Champion offers the low risk and home run opportunity we’re looking for.
Palisade Global Investments Limited holds shares of Idaho Champion Gold Mines. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.