February 8, 2022
EnviroGold Global Ltd. (CSE:NVRO, BUY (S), C$0.70 target, Koby Kushner) announced that the Government of Newfoundland and Labrador’s Department of Industry, Energy and Technology – Mineral Lands Division has approved a key permit in regards to its Buchans tailings project. We believe the receipt of the permit is a key de-risking event and an important milestone for EnviroGold, especially as it works towards commercial production in 2023. With permits in hand, we expect the company to proceed with its core sampling program this month, which is anticipated to feed into a maiden resource estimate in Q2/22. Historically, mining from 16 Mt of ore resulted in large volumes of tailings being dumped into the Buchans River. These tailings then flowed down into a salmon-bearing lake, which formed a large tailings deposit at the mouth of the river. EnviroGold has commercial profit-sharing agreements in place with the claim owners to reprocess these tailings, which contain significant Au, Ag, Zn, Pb, Cu, and Ba (read more). As detailed in our recent initiation report (read more), Buchans represents one of two projects that were included in our sum-of-parts valuation for EnviroGold, accounting for ~32% of our fair value estimate (with the other six pipeline projects representing free upside). Our model demonstrates potential for Buchans to produce ~350k oz AuEq in payable metals over a ten-year project life, with production anticipated in Q2/23. Read more
