Explor Explores The Abitibi

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Explor Resources (EXS-V)(EXSFF) has a major gold project in the heart of the Timmins-Porcupine Mining Camp in the Abitibi Greenstone Belt. This camp has been responsible for the production of over eighty million ounces of gold over the past century. Their flagship property, the Timmins Porcupine West target bears significant similarity to the nearby Hollinger-McIntyre Mine with past production of over thirty million ounces of gold.
 
The Timmins Porcupine West unit or better put, the TPW project, has had over 115,000 meters of drilling up to 2013 and intersected gold in 113 of 118 holes. A current 43-101 resources indicates 1,079,000 ounces of gold. Explor optioned TPW in 2009 for shares and cash, which have been completed. Explor owns the project 100% subject to a 3% NSR.

In December of 2014 Explor optioned 55% of the TPW project to Teck Resources (Teck) for an exploration commitment of $8 million Canadian by May of 2019. That infers a value of about $14.55 million for the entire project. If you multiply that number by the remaining 45% controlled by Explor you realize that given today’s share price of $.07 times the number of shares outstanding less the cash on hand, Explor management could sit back, smoke a Cuban stogie while sipping an icy cold gin and tonic since there literally is zero risk to the stock at $.07 a share.

Since the current resource at TPW is 1,079,000 ounces of gold, EXS owns 45% or about 485,000 ounces. The market values those ounces today at a tiny $12 an ounce in one of the leading gold camps in the world. That’s pretty cheap. Those ounces should be valued at $25-$40 an ounce at this stage of exploration.

In addition, Teck has the right to increase their position in TPW an additional 15% by spending another $4 million Canadian once their first option has been fulfilled. If 15% is worth $4 million, then the remaining 30% EXS will hold is worth $8 million. All these numbers are higher than today’s market cap and totally ignore all the other projects Explor is working on today.

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