A Target Rich Environment
I’ve visited several former producing gold mines in the Walker Lane Trend between Las Vegas and Reno recently. All of them have a lot going for them. I just went to see yet another called the King Project belonging to Asher Resources. (ACN-V).
Asher is a young company, only formed in 2011. I was an investor in the seed round. The company has two assets, the Lavington Claims in Southern BC and the King project in Mineral County Nevada, some 10 miles east of the old Rawhide gold mine. The King property consists of some 223 lode claims and is located on the eastern edge of the Walker Lane district of southern Nevada.
Asher is paying $1.5 million for the King mine over a six-year period. There is no work commitment. There is a 3% underlying NSR that can be bought down to 1.5% for $1.5 million.
As long as Asher has been alive, it’s been a difficult environment to raise money so the company has been ultraconservative with their money. There was work done about ten years ago that defines a 1200X450 meter zone of highly charged IP. The mine was in production in the 1920s and in the 1960s. There are a number of adits and shafts.
There is a zone of silicified and oxidized material that measures some 700 meters in length and up to 90 meters in width. Grab samples show from 1.9 g/t Au to 26 g/t Au over 2 meters.
The company has just embarked on a $350,000 2100 meter drill program designed to test some 11 RC holes. The drilling literally started last week and should last 4-6 weeks. Depending on the results, there may be an additional 3-500 meter deep core holes to test a porphyry target.
The very least you can say about this project is that it is a target rich environment. I would highly encourage any tentative investor to look at the excellent corporate presentation. This isn’t rocket science, you can see where the shear zones come to surface and all they have to do is to drill under the existing workings.
The share structure is exceptionally tight and management has done an excellent job of hoarding their limited resources. The company president Richard Buzbuzian has told European investors that he intends to keep at least $1 million in the till while keeping a keen eye out for distress sales in the resource sector.
The company has just over 19 million shares for a market cap of $5.2 million with $1.9 million in cash. There are an additional 8 million options and warrants that would bring in an additional $2.7 million in cash. The options and warrants are mostly above market so are non-dilutive.
It’s a wonderful time to be drilling in Nevada. Hell, it’s a wonderful time to be drilling anywhere, drilling is cheap and the labs can return assays in a couple of weeks. I would be looking for assays to start being released sometime around the 1st of December. I don’t know if they will release results in stages or gang them together.
They are going to hit something unless this is the shallowest gold mine in world history. It’s a project that they have to work to screw up. Samples taken to date appear to show a couple of meters of medium grade Au. 6-20 g/t. If the hanging wall and footwall contain economic mineralization, they could have a nice 1-2 million ounce deposit in an excellent and safe jurisdiction. In any case, it’s a lottery ticket with cheap management and results out in a month or so. It could be an easy 2-3 bagger this year.
I am biased. I was in the seed round and I’m buying more shares in the current placement. Asher is an advertiser. Their website is excellent and I encourage investors to wander around it to learn more. As always, I don’t share in your losses or your gains so do your own due diligence.