So now the deal is dry: gold project developer Treasury Metals (TSX: TML; FRA: TRC) Completes Acquisition of First Mining Gold’s Goldlund Project (TSX: FF; FRA: FMG)!
With a combined resource base of future 2.0 million ounces of gold in the measured and displayed (“M + I”) category and an additional 1.1 million ounces of gold in the derived one, one of the largest undeveloped gold assets in Canada is created straight away.
In our opinion, Treasury Metals in particular should arouse new interest among institutional investors after the complex transaction has been concluded, not least because Treasury’s shareholder base is expanding considerably. Some may be secretly hoping for the next level of consolidation: say the takeover of Treasury by one of the major gold producers. The critical mass would be there.
In addition, there is considerable exploration potential on Goldlund. Just a few days ago, for example, First Mining reported the results of the last five wells of a 48-hole drilling program on the project. The highlights were certainly a section of 173.80 g / t gold over one meter and a further interval with 5.10 g / t over one meter. Overall, the program was able to demonstrate additional mineralization in various areas of the project.
With the acquisition now out of the way and gold prices well above the $ 2,000 per ounce mark, we see good chances that Treasury Metals stock will continue on its northward path and that the company will move both projects – Goliath and Goldlund – quickly can advance. Of course, Treasury Metals remains a risky speculation, but the risk is much lower than that of pure exploration companies.
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