Source: Streetwise Reports 01/16/2024
Centenario Gold Corp. has completed a round of drilling on its Eden project in Mexico. Read on to see what analysts are saying about gold stocks.
Centenario Gold Corp. (CTG:TSX.V) announced in a press release on January 11, 2024, that the company had completed five holes on the Buenavista mineralization structure in its maiden drill program on the company’s Eden property and that it had completed a private placement deal worth US$50,000. The Eden project is neighbors with Prime Mining Corp.’s Los Reyes gold project, and sits along the same mineralized corridor in the Sierra Madre Occidental’s Lower Volcanic Sequence.
Centenario reports that the Eden project contains gold and silver mineralization in north and northeast trending veins. In particular, the Buenavista structure has been measured to be up to 20m wide and extends for over 2.8km long, and the company has stated that the mineralization in the Buenavista structure contains high-grade veins and breccias of gold and silver.
The company reports that it took samples approximately every 10m along the 100m long main underground adit of the Buenavista corridor and that many of these samples returned significant grades.
A representative of the company stated, “We got our highest grade number from the middle of this adit that returned grades of 239 grams gold and 1390 grams silver, but also numerous samples of 5 grams, up to 50 grams, but all samples returned some sort of grade.” The company reports that from the first three holes of this phase of the drill program, there were 210 samples taken, and they have been sent out for testing and that drilling resumed after the Christmas break on January 6, 2024.
Centenario stated that it is expecting the results from the three drill holes before the end of the month.
The company stated that the financing included 333,333 units issued at US$0.15 each, with one share and half of a common share purchase warrant, with one total warrant exercised at US$0.30 for two years.
Gold Rising as Dollar Falls
On December 28, 2023, Alasdair Macleod with Goldmoney reported that the gold market looked like it would be bolstered by a weakening dollar in 2024. Macleod commented, “To support this thesis, the relative price volatility for commodities and energy in dollars and gold are compared. Gold wins hands down as the objective value in commodity transactions.”
Rick Mills with Ahead of the Herd also examined the gold market and predicted that a reduction of interest rates on the part of the U.S. Federal Reserve and a move by Russia and China to disengage with the U.S. dollar would push gold upwards.
Mills commented, “While the dollar is the most important unit of account for international trade, the main medium of exchange for settling international transactions, and the store of value for central banks, ‘de-dollarization’ is being pursued by countries with agendas at odds with the U.S.” The search for alternative stores of value is on, and gold seems to be a contender.
Analysts Bullish on Similar Projects
Prime Mining Corp. (PRYM:TSX.V), a junior mining company in the same region of Mexico, was rated as a “Buy” by analyst John Scoldnick of Desjardins on April 24, 2023, with a target share price of CA$5.00. A major factor in the company’s rating was the review of the Los Reyes site tour, which is also expected to contain significant mineralized structures.
Stiefel GMP also rated Prime Mining as a “Buy” for investors, with a target price of CA$5.00. Stiefel also cited the company’s exploration potential on the Los Reyes, which contains multiple mineral deposits. Another factor in Stiefel’s report was that the location put the project close to important infrastructure, especially the port of Mazatlan.
TD Cowen rated the company as a “Speculative Buy” for potential investors, with a target share price of CA$4.00 and a potential return of 66.0%. TD Cowen evaluated the Los Reyes project and concluded that it would have a positive impact on the company, especially since previous research reports estimated the project to have 1.12mm ounces of mineralization with 1.29 grams per tonne of gold equivalent. The report states that a new resource estimate is expected on May 1.
The company has a number of catalysts to report, including restarting drilling and two shows in Vancouver. Centenario is also waiting on the highly anticipated drill results from the Eden project. In an interview with Streetwise Reports, a representative of the company stated, “Our crews moved back into Mexico, and Andrew Thompson moved back onto the property on the weekend, and we’ll be drilling by probably this weekend again.” The company also reports that it identified new mineralization structures on the property that could yield future results.
Ownership and Share Structure
According to Reuters, CEO Alain Charest owns 30.56% of the company with 1.83 million shares, President Douglas A. Fulcher owns 20.83% of the company with 1.25 million shares, CFO Jonathan Leslie Younie owns 15.18% of the company with 0.91 million shares, Jackie Cheung owns 14.17% of the company with 0.85 million shares, Kevin Milledge owns 7.50% of the company with 0.45 million shares, Mexican Legal Counsel and Director Pablo Mendez Alvidrez owns 6.88% of the company with 0.41 million shares, Director Michael H. Woods owns 3.33% of the company with 0.20 million shares, and Director Xiao Qin Ma owns 2.40% of the company with 0.14 million shares.
The rest is in retail.
According to Reuters, there are 6 million shares outstanding with no free float traded shares, while the company has a market cap of CA$0.52 million and trades in the 52-week period between CA$0.09 and CA$0.18.
- Centenario Gold Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Centenario Gold Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: CTG:TSX.V,