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Golden Tag Resources Ltd. (TSXV:GOG)

Summary

Golden Tag Resources Ltd. (TSXV:GOG) is a junior exploration company exploring for high-grade silver deposits. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico. The San Diego property is located within the prolific Velardeña Mining District, the site of several mines having produced silver, zinc, lead, and gold over the past century. The Project currently hosts over 230 million AgEq ounces of Indicated + Inferred NI 43-101 compliant resources. The company also believes that there is an additional 20 to 50 million tonnes of potential addition grading 100 to 150 g/tAg Eq (65 to 240 million ounces). Golden Tag has no debt and cash balances of approximately $9 million.

Stock Chart

Share Structure

As of June 30, 2020
Shares Issued 129.8 M
Warrants 45.98 M
Options 4.2 M
Fully Diluted 179.99 M

Investment Highlights

  • Golden Tag’s San Diego property is located within the prolific Velardeña Mining District in Durango State, Mexico.
  • Among the largest undeveloped silver deposits in Mexico with over 115 million ounces of silver, 1.5 billion pounds of zinc in resources.
  • One of the most undervalued assets in the market on an EV/oz basis
  • New management on board at the helm.
  • Several exploration targets ready to be tested that could expand the deposit materially in several key areas.
  • Well financed with approximately $9 million in cash balance.
  • Exploration program underway with expected news flow in Q1 of 2021.

Projects

San Diego, Mexico

Significant silver and zinc resource in the prolific Velardeña Mining District in Mexico

  • One of the largest undeveloped silver resources in Mexico
  • Potentially expandable in a number of areas
  • Fully permitted to resume exploration drilling

 

Indicated Resources:

16.5 million tonnes grading 60 g/t Ag, 0.71% Pb, and 1.22% Zn (105 g/t Ag.EQ)*

31.6 million ounces silver; 438 million lbs zinc

Inferred Resources:

42.1 million tonnes grading 62 g/t Ag, 0.90% Pb, and 1.31% Zn (115 g/t Ag.EQ)*
83.8 million ounces silver; 1,211 million lbs zinc

  • 4 mining concessions, 91.65 hectares, 100% owned by Golden Tag.
  • 43-101 compliant independent resource estimate by SGS Canada in 2013; project has been on
    reduced activity for the past 7 year waiting for a rebound in silver prices.
  • Based on 33,000 meters of drilling.
  • Resources include mineralization from 23 zones with good lateral and vertical continuity.
  • Grades conservatively include metallurgical recoveries and smelter deductions.
  • Over 115 million ounces of silver and 1.5 billion lbs of zinc in the resource estimate.
  • Future exploration targets higher-grade silver and zinc zones.
  • Shallow drill program proposed to better define these targets closer to surface.
  • Excellent potential for further resource growth and additional new discoveries.

Management Profiles

Greg McKenzie Director, President & CEO

Former senior investment banker with > 20 years of experience with Morgan Stanley, CIBC World Markets and Haywood Securities, with transactions in excess of $18 billion. In addition to his capital market experience Mr. McKenzie previously practiced corporate law with a leading Canadian securities and M&A law firm.

Carmelo Marrelli Chief Financial Officer

Principal of The Marrelli Group, a Chartered Professional Accountant (CPA, CA, CGA) and a member of the Institute of Chartered Secretaries and Administrators. Mr. Marrelli also acts as the chief financial officer to a number of issuers on the TSX, TSX-V and CSE, as well as non-listed companies, and as a director of select issuers.

Will Ansley Vice President Corporate Development & Investor Relations

20 years of industry experience, including development & construction of seven mines in the Americas, including six mines in Ontario; Director of Business Development for FNX Mining and the VP of Corporate Planning & Strategy for Lake Shore Gold, and was the COO of Mineral Streams Inc., which was sold to AuRico Metals Inc. in 2015.

Chad Williams Chairman

Chairman and founder of Red Cloud Klondike Strike, former Head of Mining Investment Banking at Blackmont Capital Inc., and a highly ranked mining analyst at TD Bank and other Canadian brokerage firms, and CEO of Victoria Gold Corp. Mr. Williams holds both a P.Eng in Mining and an MBA from McGill University.