Gold Co. Finishes 2024 Field Program on Way to PFS

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Thesis Gold Inc. (TAU:TSXV; THSGF:OTCQX; A3EP87:WKN) announced it has successfully finished its 2024 exploration season at its 100%-owned Lawyers-Ranch Project in the Toodoggone Mining District of northern British Columbia.

The company released an updated independent Preliminary Economic Assessment (PEA) last month. It said comprehensive fieldwork completed there this year provided "critical geological, engineering, and environmental data, further supporting ongoing permitting efforts and positioning the company for a smooth transition into a Pre-Feasibility Study (PFS)" for the project.

Completion of the work was a "key milestone" for the company, said President and Chief Executive Officer Dr. Ewan Webster.

"This key work is in preparation for the environmental assessment process and positions us to swiftly transition into the PFS," Webster said in a release. "With a strong PEA already in place and accelerated progress toward (a) PFS and permitting, the Lawyers-Ranch Project stands out as a premier, advanced-stage asset with significant near-term production potential and considerable exploration upside."

After the release of the updated PEA including both Lawyers and Ranch in September, Analyst Jonathan Guy, director of mining research for Hannam & Partners, raised its price on the stock from CA$2.04 to CA$2.48, a 230% return from the share price at the time of the report, which was about CA$0.75. TAU was about CA$0.91 on Monday morning, still a 173% increase.

"In our view, this sets out a materially more attractive project than Lawyers on a standalone basis," Guy wrote of the PEA.

Details of Fieldwork

As part of the 2024 exploration activities, Thesis said it drilled a total of 9,510 meters, split between engineering and environmental baseline studies, resource upgrading, and exploration.

The company drilled a total of 5,400 meters at Ranch, "emphasizing geotechnical and water-monitoring studies," the company said. "Geology-focused drilling at Ranch followed up on targets from last year and included new exploration targets."

Thesis said it drilled 4,100 meters at Lawyers to upgrade resources and confirm mineralization in conceptual modeled stopes.

"The initial drill results are expected soon and will continue to be released over the coming months," the company said.

The geotechnical drilling at Ranch will help assess rock quality and provide essential data for future mine design efforts, Thesis noted. A test pit program was done at the site to assess ground qualities at proposed waste rock storage sites.

Metallurgical and geochemical samples were also collected from Ranch core to continue optimizing the process flow sheet and further support studies on acid-base accounting.

Ranch also is in its second year of a two-year baseline environmental study period, the company said. Biologists and hydrogeologists collected data to "characterize the project's aquatic, terrestrial, geochemical, and meteorological components."

Also, a "two-year baseline data collection at Lawyers is now complete, with only final reporting outstanding," Thesis said.

The project achieved "significant progress" de-risking with 2024 developments, Thesis said, including the PEA and the announcement of a Measured and Indicated Mineral Resource Estimate (MRE) of 4 million ounces (Moz) and an Inferred Mineral Resource of 727 thousand ounces gold equivalent (Au Eq) earlier this year.

"This year's comprehensive field program filled key geological, engineering, and environmental data gaps, setting the stage for the company's next major milestone: the initiation of a Pre-Feasibility Study (PFS) in early 2025," Thesis said in its release. "Importantly, with major capital-intensive elements like baseline studies, infill drilling, and on-site engineering work now largely complete, Thesis is well-positioned to minimize spending and dilution going forward, preserving value for shareholders."

'One of Canada's Larger Undeveloped Gold Projects'

Guy with Hannam & Partners compared the project's updated PEA to a previous one completed in 2022.

In the 2024 PEA, the life of mine (LOM) is longer, 14 years, versus 12 in 2022. Average production over the LOM is higher, too, at 215,000 ounces (215 Koz) on a gold equivalent basis versus 163 Koz, reflecting a 32% increase.

"This level of production should make the deposit, which has a resource of 4,700,000 ounces, attractive from a mergers and acquisitions perspective," Guy wrote.

In a September 5 research note, Ventum Capital Markets Analyst Philip Ker also remarked positively on the expanded PEA, "making it one of Canada's larger undeveloped gold projects."

"With substantial mine plan optionality, exploration upside, and silver exposure, we see the Lawyers-Ranch project gaining steam in a rising mergers and acquisitions environment as intermediate gold operators seek bolt-on assets to replenish their project pipelines," wrote Ker, who rated the stock a Buy CA$1.55 per share target price.

The Catalyst: US$3,000 Gold Coming Into View?

It's not a bad time to be looking for the yellow metal, as many experts agree it's in the early stages of a bull market, hitting a new record of US$2,685.45 last month. While the price cooled slightly after the release of U.S. payroll data (it was US$2,640.97 per ounce on Monday), some believe gold is just getting started.

"In March 2024, gold hit US$2,070 and, even though the last six months have seen pushbacks and dips, gold continues to climb," Nick Fulton, managing partner at USA Pawn, told Newsweek. "When we saw $2,600 an ounce gold, I thought $2,800 by the end of the year. Now? We could see gold at $3,000 an ounce happen in a 30-day time span."

Newsweek author Aliss Higham put down the surge to several factors, including newly lowered interest rates from the Federal Reserve, fresh investor attraction, and war in the Middle East, as gold is considered a safe-haven investment particularly in times of geopolitical conflict.

Ownership and Share Structure

According to Thesis, about 66% of the company is owned by institutions, and about 4% is owned by insiders. The remaining 30% is retail.

Top shareholders include Franklin Advisers Inc. with 7.82%, Merk Investments LLC with 7.58%, Delbrook Capital Advisors Inc. with 5.5%, Sprott Asset Management LP with 4.63% and Van Eck Associates Corp. with 2.45%. Director Nicholas Stajduhar owns 1.09%.

The company said it has 196 million shares outstanding, 198.9 million fully diluted. Its market cap is CA$158.39 million, and it trades in a 52-week range of CA$1.00 and CA$0.37.