20.3 G/T Gold Found in Quebec Drill, More Targets Identified

1. Bonterra Resrouces is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
3.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE) has announced the first assay results from drilling at the Gladiator Southwest (Gladiator SW) target and provided an update on the 2025 exploration program at the Phoenix Joint Venture (JV) with Gold Fields Ltd. The JV allows Gold Fields to earn a 70% stake in the project by investing US$22.2 million (C$30 million) in exploration expenditures, with a minimum commitment of US$7.4 million (C$10 million) annually over three years. As of now, over half of this commitment has been fulfilled within the first year.

Gold Fields has drilled more than 65,000 meters at the Phoenix JV, representing an investment of approximately US$13.3 million (C$18 million). This includes 5,700 meters across 13 drill holes at the Gladiator SW target along the Barry Shear Zone. A review of core samples from the Gladiator and Barry deposits has also been conducted to refine geological interpretations. These deposits contain a combined mineral resource of 1.08 million ounces in the Measured and Indicated categories and 1.68 million ounces in the Inferred category, based on the 2021 mineral resource estimate.

The first assay results from the Gladiator SW target include a highlight intercept of 20.3 grams per tonne (g/t) gold over 1.5 meters in hole PHX-24-0119. The reported true width of this intercept is estimated to range between 55% and 80% of the core length.

Gold Fields is finalizing plans for a 15,000-meter drill program in 2025, which will focus on targets along the Barry Shear Zone, including Gladiator NE and Titan. Additional areas such as Duke NE, Chanceux, the Tourmaline Ridge extension, and Rouleau Till are also under consideration. The company anticipates deploying three to four drill rigs to advance these exploration initiatives. A gravity airborne survey and related fieldwork are scheduled for the summer of 2025, pending internal reviews and approvals.

Marc-André Pelletier, President and CEO of Bonterra, highlighted the rapid progress at the Phoenix JV, stating in the press release, "Gold Fields has achieved significant progress in exploration near their high-grade Windfall project, identifying multiple promising targets for further drilling. With over half of the planned joint venture expenditures already completed in the first year, we look forward to continued collaboration to advance Quebec's newest emerging gold camp."

Gold Sector Strengthens Amid Institutional Investment and Record Prices

On March 15, Energy and Capital reported that gold reached an all-time high of US$3,017 per ounce before retreating slightly as markets opened in North America. The article noted that historical trends suggested caution at these levels, as previous dramatic price spikes had sometimes led to corrections.

However, it emphasized that gold remained a core hedge against economic instability and inflation, with continued demand from institutional investors and central banks. The analysis also pointed to silver as an undervalued alternative, particularly given its increasing industrial demand.

On March 20, Cormark Securities gave Bonterra Resources a Buy (S) recommendation with a target price of CA$0.70, representing a 204% total return potential based on the company's then-current share price.

A March 16 analysis from 321Gold described gold's rally within a technical framework, with projections suggesting continued strong performance.

The analysis indicated that gold's price movement had formed a bullish pattern, and expectations remained high for further upside. It stated that "we should now be moving sharply higher in wave (iii)," pointing to key resistance levels that, if surpassed, could drive additional capital into gold equities.

On March 18, Stockhead reported that gold surpassed US$3,000 per ounce, reinforcing its role as a safe-haven asset amid market volatility. The article highlighted that mining stocks responded positively to the price movement, with Newmont Corporation gaining 2.75% on the Australian Securities Exchange. The broader impact of rising gold prices was evident as investors increasingly turned to the sector as a hedge against economic uncertainty.

According to a March 18 report from Kitco, gold stocks experienced increasing institutional interest as stagflation concerns pushed money managers toward mining equities. Stewart Thomson noted that in the 1970s, gold stocks surged as traditional stock markets declined due to economic uncertainty, adding that "most gold bugs may be underestimating the amount of institutional money that could pour into the miners." He suggested that a similar trend was unfolding, with a potential "ongoing institutional tidal wave of capital" directed toward gold stocks.

Analysts See Strong Upside as Bonterra's JV Gains Momentum

On March 20, Cormark Securities gave Bonterra Resources a Buy (S) recommendation with a target price of CA$0.70, representing a 204% total return potential based on the company's then-current share price. The report emphasized Bonterra's extensive exploration portfolio and highlighted its joint venture with Gold Fields as a significant catalyst for growth.

Cormark noted that Bonterra was trading at an enterprise value per ounce (EV/oz) of US$23, compared to an industry average of US$48 for developers within its coverage. The firm cited Bonterra as an attractive investment for risk-tolerant investors, given its "cheap ounces in a rising gold price environment." The report also pointed to the first assay results from the Gladiator Southwest target, where hole PHX-24-0119 returned 20.3 grams per tonne (g/t) gold over 1.5 meters, as a positive indicator for further resource expansion.

Cormark further highlighted the Phoenix JV's rapid progress, noting that Gold Fields had already completed 60% of its total capital commitment within the first year. With a planned 15,000-meter drill program in 2025, including multiple high-priority targets, the firm suggested that upcoming exploration results could be significant for advancing the Gladiator and Barry deposits.

Strategic Growth in Quebec's Emerging Gold District

Bonterra's Phoenix JV with Gold Fields is positioned within Quebec's emerging Urban-Barry gold district, an underexplored region with increasing investor and industry interest. The JV's continued drilling efforts and additional geological surveys planned for 2025 are expected to refine the understanding of mineralization across multiple target areas, as outlined in the Bonterra investor presentation.

Gold Fields' commitment to exploration, demonstrated by its accelerated spending, underscores the potential scale of the Phoenix JV. The 2025 drill program aims to identify high-grade mineralization, leveraging historical gold showings and geophysical survey data to delineate new exploration zones. The JV's location near the Windfall gold deposit, which Gold Fields acquired through its US$1.6 billion (C$2.16 billion) takeover of Osisko Mining in 2024, further enhances its strategic importance.

Bonterra also benefits from established infrastructure in the Urban-Barry camp, and an 800-ton-per-day processing facility at the Bachelor Mill Complex, located 110 km to the North. The mill's potential for future reactivation presents an opportunity for localized processing, which could streamline future development and production scenarios. 

With exploration efforts ramping up and key targets set for further drilling, Bonterra and Gold Fields remain focused on unlocking the full potential of the Phoenix JV. The results from ongoing and future drill programs will be instrumental in shaping the next phase of development for the project. 

Ownership and Share Structure

According to the company, 37.59% of Bonterra is held by institutions. Of those, Wexford Capital holds the most with 18.61%, MMCAP Asset Management has 8.80%, Fidelity Management and Research holds 4.43%, Ruffer LLP owns 3.51%, and Caisse de Depot et Placement du Quebec has 2.24%. 

3.10% is held by management and insiders with Cesar Gonzalex holding 1.42%.  

Bonterra Resources has a market cap of CA$26.86 million, 162.41 million free-float shares, and 166.15 million shares outstanding.  Its 52-week range is CA$0.18 to CA$0.34.