High-Grade Gold Intersections Highlight Potential For BC Project

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Endurance Gold Corp (EDG:TSX.V; ENDGF:OTCPink; 3EG:Frankfurt) has reported initial 2024 drill results from its Reliance gold project in British Columbia. This confirms a high-grade gold mineralization at the Imperial and Diplomat zones. The company has completed 11 drill holes, totaling over 3,500 meters, as part of its 2024 program. The aim is to expand the gold zones along the Royal shear structure. The six released drill holes, from DDH24-083 through DDH24-088, include:

• 2.19 g/t gold over 12.1 m; including 11.95 g/t gold over 0.6 m and 7.92 g/t gold over 1.1 m
• 5.41 g/t gold over 4.1 m; including 11.15 g/t gold over 1.2 m
• 1.94 g/t gold over 12.3 m; including 7.53 g/t gold over 1.0 m and 5.11 g/t gold over 2.0 m
• 6.80 g/t gold over 4.3 m; including 13.70 g/t gold over 2.0 m
• 3.26 g/t gold over 4.3 m
• 2.98 g/t gold over 4.7 m; including 6.72 g/t gold over 1.0 m

Robert T. Boyd, CEO of Endurance Gold, highlighted the significance of these results in the company press release: "The Reliance gold project continues to deliver exciting drill results that demonstrate a strong gold system." He noted that the mineralization remains open for expansion both along strike and at depth. Additional assay results from the next phase of drilling, which targets the Eagle and Imperial zones, are expected by mid-October.

The current drill program is financed and expected to continue through the end of 2024. It is also part of a broader strategy to expand and deepen the mineralized zones at Reliance. The company believes these results suggest significant potential, particularly in the Diplomat zone, which has emerged as a secondary mineralized zone beneath the Imperial zone.

The Gold Sector Shines On

As gold prices reached new heights in 2024, companies like Endurance Gold Corp. have continued to benefit from favorable market conditions. These conditions were highlighted by Reuters on September 19.

 Ben Pirie and Nicholas Cortellucci of Atrium Research reaffirmed their Buy rating on the stock and maintained a target price of CA$0.50 per share

The report stated, "Gold prices rose over 1% on Thursday as the U.S. Federal Reserve launched its monetary easing cycle . . .  boosting bullion to an all-time high and just a few cents shy of the key US$2,600 ceiling."

This increase reflected the ongoing strength of gold as a safe-haven asset during periods of political and economic uncertainty, a sentiment echoed by UBS, who noted that "this rally could go further" and projected gold could hit US$2,700 per ounce by mid-2025. The broader demand for gold ETFs is also expected to grow as rate cuts stimulate the market, reinforcing the favorable environment for gold exploration and development projects like those undertaken by Endurance Gold.

According to Stewart Thomson from 321 Gold on September 17, gold was in a "sweet spot" for both gamblers and long-term investors. With rate cuts expected to "produce a stunning drop in real interest rates," there are expectations that this could trigger a rise in ETF buying. Thomson even suggested that gold prices could rise as high as US$5,000 per ounce, underscoring the bullish outlook for the sector. The ongoing rate cuts and weakening U.S. dollar have fueled this optimism, with analysts at Goldman Sachs also forecasting a significant increase in ETF demand. This is expected to drive further gains in the gold market.

This sentiment is further supported by Stockhead, which reported on September 13 that "gold has reached a new high of US$2,568/oz," driven by a combination of economic factors, including the Fed's anticipated rate cuts. The publication noted that mergers and acquisitions in the gold sector were also contributing to the positive outlook, with major deals positioning explorers for future growth.

Endurance's Catalysts

Endurance Gold's Reliance project is showing early indications of a high-grade gold system with significant expansion potential. According to the company's investor profile , the Reliance gold project is situated within a productive gold camp near Gold Bridge, British Columbia. The company has systematically expanded the project's potential since 2020, with drilling activities focusing on the Eagle, Imperial, and Diplomat zones. The ongoing drilling aims to confirm continuity and further expand the mineralized zones along a two-kilometer shear structure.

Endurance Gold's leadership team, including Robert Boyd, brings extensive experience in mineral exploration, while the company's financial position supports continued exploration activities. With over CA$6.40 million in working capital, the company is fully funded for its 2024 exploration efforts.

The forthcoming assay results from deeper holes in the Eagle and Crown zones, expected in October, could serve as critical milestones.

Analysis of Endurance's Prospects

In a research note from Atrium Research analysts Ben Pirie and Nicholas Cortellucci, published on September 17, Endurance Gold Corp.'s results from its first six diamond drill holes at the Reliance Gold Project were seen as highly encouraging. The analysts reaffirmed their Buy rating on the stock and maintained a target price of CA$0.50 per share. This would represent a return of 233% based on the stock’s price at the time of the report.

Pirie and Cortellucci expressed enthusiasm for the reported results, stating, "We are excited by today's results as they kick off another season of strong drill results from the Reliance Project, with assays rolling out until the new year."

They noted that the Imperial Zone had been extended by 100 meters to the northwest and remained open for further expansion. Fully funded until the year’s end, the drill program still has approximately 6,500 meters of drilling left to complete.

The report also emphasized the potential for Endurance Gold to develop a "multi-million-ounce high-grade deposit" at the Reliance project. The analysts concluded that the company’s drill results were "best-in-class." This was viewed as a reinforcement of the company’s prospects for resource growth and expansion.

With the ongoing 10,000-meter drill program and strategic focus on expanding mineralization, Atrium Research maintained its positive outlook. In the end, Endurance Gold was presented as a promising exploration company with significant upside potential.

Ownership and Share Structure

According to Refinitiv, 57.12% of Endurance is held by management and insiders. Of those, Richard Gilliam holds the most at 32.97%, H Ross Arnold owns 16.23%, and Robert Boyd owns 5.68%.

Of strategic investors, Cunniah Lake Inc has 3.93%. The rest is retail.

According to Marketwatch, Endurance has a market cap of US$25.93 and 74.08M free float shares. Their 52 week range is US$0.10 - 0.23.