Mining Co. Resumes Exploration on High-Grade Gold Property

McFarlane Lake Mining Ltd. (MLM:NEO; MLMLF:OTCQB) has announced in a press release that it has resumed exploration drilling to expand the resource on the company's High Lake Property. The company reports that the planned drill program comprises 10,000m of drilling focused on the Purdex zone, which returned a high-grade mineralized resource estimate (MRE) in the previous campaign completed in February of this year. The MRE identified 152k tonnes of indicated resource at 9.38 grams per tonne (g/t) and 287k tonnes of inferred resource at 10.43 g/t. 

The MRE identified three zones of mineralization, covering an area that is 220m long and 420m deep on the property, and these zones have returned grades of up to 24.96 g/t of gold (Au) in one 14.90m stretch and 9.20 g/t Au along 26.4m.

The program will also test a number of targets generated by the Induced Polarization ("IP") geophysical survey that was completed in February 2023 and the follow-up prospecting program completed in May 2023.

Roger Emdin, the CEO of McFarlane, commented, "We are very pleased to have raised more than CA$4.6 million in our recently closed private placement in a very tough capital market regime for junior explorers. This financing allows us to resume our successful exploration activities and seek to expand our high-grade mineral resource estimate on the Purdex zone and follow up on other high-priority targets."

Gold Reaches 20-Month High

McAlinden Research Partners released a report on December 5, 2023, that stated that gold, at US$2,150 per ounce, and Bitcoin, at US$42,000 per unit, hit a 20-month record high.

McAlinden identified a relationship between gold values and cryptocurrencies, commenting, "MRP has long posited that gold and Bitcoin could very well be complementary assets in some situations, sharing very similar monetary qualities and the potential to benefit from similar trends."

Josh Chiat also examined the gold market on December 4, 2023, and cited more traditional reasons for the gold breakout, including conflict in the Middle East and the expectation that the U.S. Federal Reserve will cut rates in 2024, both of which drive up uncertainty. Gold is commonly seen as a "safe haven" investment, meaning that when confidence in the economy goes down, the value of gold goes up.

A Strong Speculative Buy

Technical Analyst Clive Maund reviewed the company in June of 2023, rating the company as a "Strong Speculative Buy" for potential investors.

Maund cited several factors in his assessment of the company, including the company's encouraging stock patterns: "Within the Handle part of the Cup & Handle base, we can see that the price is being steadily shepherded higher by the Saucer boundary towards a breakout, which will occur when the price breaks above the resistance at the upper boundary of the entire pattern."

In February of 2023, Maund rated the company as an "Immediate Speculative Buy" because of the news that McFarlane had intercepted "bonanza grade results" on its lucrative High Lake property.

The company has a number of catalysts to report, according to its investor presentation, including an application for a permit to start surface bulk sampling on the High Lake Property.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 25.22% of the company.

Reuters reported that President and CEO Mark Trevisiol owns 15.32% of the company with 12.36 million shares, Director Perry Nicholas Dellelce owns 6.32% of the company with 11.47 million shares, COO Roger John Emdin owns 1.75% of the company with 3.17 million shares, Director Dario Zulich owns 1.54% of the company with 2.80 million shares, Director Fergus P. Kerr owns 0.28% of the company with 0.50 million shares, and CFO Charles James Lilly owns 0.01% of the company with 0.01 million shares.

Reuters reports that institutions own approximately 18.13% of the company.

Evanachan, Ltd. owns 11.01% of the company with 20.00 million shares, and Canadian Star Minerals Ltd. owns 7.12% of the company with 12.93 million shares.

According to Reuters, there are 181.63 million shares outstanding, with 118.39 million free float traded shares, while the company has a market cap of CA$13.36 million and trades in the 52-week period beginning at CA$0.03.

Important Disclosures:

1. [McFarlane Lake Mining Ltd.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [McFarlane Lake Mining Ltd.].
3. [Amanda Duvall ]wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.

For additional disclosures, please click here.