Wallbridge Mining (TSX:WM, Frankfurt: WC7, OTCMKTS:WLBMF) – Economically Derisked Exploration In The Abitibi
Current Price: C$0.07
Shares Outstanding: 222.4 million
Market Capitalization: C$15.6 million
52-Week Range: C$0.035-C$0.10
Cash in treasury: ~C$1.0 million (Jan 31, 2017)
Current Assets: $1.5M (Sept 30, 2016)
Current Liabilities: ~C$0.95 million (Sept 30, 2016)
As we were preparing this article, Wallbridge released an update of its own on its new flagship, the Fenelon project.
Wallbridge announced the results from a pre-feasibility study (PFS), headlined by Fenelon’s ability to generate almost immediate cashflow, and significant growth potential. This recent PFS showed highly lucrative results with a 92% rate of return. You read that right – ninety two percent.
Located in the prolific Abitibi-belt in Quebec, the company will now make a production decision later this year. Wallbridge will also be exploring at surface to continue to add ‘low-hanging’ ounces.
Once in production, we believe Fenelon will be able to grow its high-grade resource significantly. The PFS was performed on only the top 100 meters and along a 200-meter strike, whereas similar projects in the Abitibi measure at least 800 meters deep. Fenelon has also confirmed a mineralized structure that spans 4,000 meters. The growth profile here is incredible.
Fenelon will be the foundation of Wallbridge moving forward, as management plans on adding at least six more projects with similar economics, with the long-term plan in becoming a high-margin mid-tier producer.
The Fenelon Gold Project – Location, Location, Location
Fenelon was acquired in October 2016 from Balmoral Resources (TSX:BAR) after performing due diligence on more than 100 projects. Speaking to President and CEO, Marz Kord, Fenelon passed a very strict mandate, which includes: an NPV to capex ratio of greater than one; scalability, short ramp-up to production, at least a 1-3-year initial mine life, and a high-margin return for shareholders.
The project has seen over 50,000 meters of drilling and this extensive exploration has uncovered several mineralized zones. In 2001 and 2004, two bulk samples were sent to processing and they delivered excellent grades of 9.84 g/t and 10.70 g/t, and recoveries over 97%.
Fenelon currently has a small resource; it only encompasses a 200 metres strike, 100 metres wide and 150 metres deep. The estimated outlined high-grade resource near existing underground infrastructure includes 38,000 (12.97 g/t) M&I and 1,900 (9.15 g/t) inferred.
The PFS converted the majority of the resources into reserves, but once again, the total area included is the study is just a fraction of the prolific land package.
The project will be cheap in terms of processing, and will require only $2.5 million in capex to get to production. But the most exciting part of Fenelon is the scalability.
The below map shows the current resource, the high grade mineralized intersections outside the resource and the potential for expansion as compared to one of many similar high-grade deposits:
(Source: Wallbridge Mining)
(Source: Wallbridge Mining)