NewPeak Metals (NPM) - Gold Exploration v Project Generation
NewPeak is a diversified junior mining company and has established strong Gold exploration assets in 3 of the top mining jurisdictions globally – Argentina, New Zealand and Finland.
NewPeak also holds a 30% stake in Oil and Gas company, Lakes Blue Energy NL. NewPeak’s Board and Management team consist of geologist entrepreneurs including Sol Gold’s Nick Mather, who is Chairman of the Board. NewPeak’s strategy drives the company towards resource definition and is moving quickly towards discovery of a multi-million-ounce Gold resource.
Interview with David Mason, CEO of NewPeak Metals who are a project generator with 7 projects in their portfolio with Gold, Tungsten and Oil too. We talked about timing, financing and the value going forward.
NewPeak is a Gold exploration resource company with a number of Gold projects in different jurisdictions around the world, South America, Australasia, New Zealand and Northern Europe, Finland and Sweden. Company objectives are to find one or more multi-million oz precious metal, Gold, Silver deposits. They are working through their projects and have discarded those that are not worthwhile and have picked up some new ones, working towards discovery and then the subsequent definition.
Once they get to the point that they believe they have an exceptional project, they then look to others to come in as a joint venture into that particular asset. All their projects in the different countries are structured in their own individual domestic companies.
Cachi Gold Project Drill Program Results, Grades, & Plans
The Cachi Gold project in Argentina, Deseado Massif, is amongst Cerro Negro (Newmont) and Vanguardia (AngloGold) which are multi-million oz, principally Gold with Silver mines and very large resources and NewPeak believes that Cachi is going to be one of those. The latest drilling programme has proved that this project has 10km of length and 5km of width which is a huge area. They identified about 15 major targets through surface exploration and have drilled at each of those targets. 80% of that drilling brought back anomalous Gold results and has also shown that it's a huge area and is going to need time, effort, patience and dollars to get to that discovery and define that large Gold system. NewPeak now needs to go out to the marketplace and look for a joint venture partner to come in and support moving the project forward.
The 2,500m drilling at Cachi was completed a few weeks ago, the results are back and they are undertaking a comprehensive review and analysis of the data.
Focus & Financing: Project Generator, or is it?
NewPeak is a small company at the moment with a number of projects in different jurisdictions. A discovery has already been made in Finland - Satulinmäki and Hopeavouri are the two projects that NewPeak has in Finland and they have had some exceptional drilling there with thick intersections with very high-grades. Cachi has anomalous Gold, but the big anomalous discovery is yet to be made.
NewPeak is now listed in Frankfurt in addition to Australia, so are dual listed. They have European Gold and strategic metal projects in Finland and Sweden and NewPeak believes that it's now time to consider attracting some European investors into NewPeak.
Share Structure Getting Tightened?
NewPeak will at some stage look at a structural consolidation of their capital at the right time so that it doesn't affect their market capitalization in the shorter term.
Raise Coming: Amount Being Raised, Allocation of Funds, & Focus
NewPeak will be looking to raise sufficient funds to fulfil their drilling objectives in Finland which is about $1M and also some drilling in Sweden on their strategic metals programme in the second half of this year which is about $0.5M probably. They also want to implement a drilling programme at Las Opeñas in Argentina but have had to delay it till the spring/summer of Argentina, which is September, October, November. They will need a bit over $1M for that drill programme and some more funds for moving Cachi forward so will need to raise between $3-5M in total.
The order of play for NewPeak is Cachi on the Gold and then to get drilling in Finland later this year, subject to raising capital. They have also been drilling in New Zealand and are awaiting assay results which should be out by the end of June.
Monetize or Discount: Approach to Projects & Prioritization
The next priority for NewPeak is in Europe in Finland and Sweden with the Tungsten project and then Las Opeñas. They have started to look for a partner for the Cachi project but at this stage they feel they have the ability to raise the funds themselves to take the other projects to a higher level. They have sufficient funds to commence the drilling in Finland and believe the initial results will be good.
Sweden Strategic Metals Portfolio: What's the Outlook?
NewPeak has engaged a Swedish geological engineering firm called GeoVista to complete a Scoping Study at the Swedish Tungsten minerals projects. The work to date and the field work completed in Sweden in December shows that it's a multi-metal region. Tungsten has been mined there historically for many years, but they've pulled out a number of other metals associated with that. Recent work shows that there is Copper, Molybdenum, Gold, and Silver so NewPeak has reclassified Bergslagen in the Sweden group portfolio of properties to strategic metal properties. The GeoVista results are coming through and NewPeak plans a market release in the next week which will lead to a design and plan of a detailed comprehensive exploration programme for that Swedish strategic metal group of properties which they will implement during the latter half of 2021.
Acceleration of Plan & Quick Wins to Get Projects Going
These are great headlines for the company as strategic, critical minerals, rare earths, green metals are all very topical at the moment.
The results in Finland are there at both Satulinmäki and Hopeavouri, 10m, 15m thickness running 10g, 15g, 20g/t and NewPeak will be drilling there in the next couple of months. They are working towards a resource definition and they believe they will be able to raise funding to ensure they can move those Finland projects forward.
30% Position in Lakes Blue Energy: Potential & Problems
NewPeak is also involved in Lakes Blue Energy and owns 30% of the company that has huge onshore gas resources in Victoria in Australia and in Papua New Guinea. Lakes Blue Energy is moving forward with each of those projects and despite not trading at the moment, some of their assets are very high value and Lakes Blue will find a way to ensure their shareholders are rewarded for the value of those assets. The shares of Lakes Blue are currently suspended rather than delisted and they must make announcements to the ASX as they move those projects forward. Shares were worth $0.15 before they were suspended so it was worth $15M to NewPeak.
We are looking forward to following the NewPeak story and catching up with them again in a month or so when they have some news. They put out ASX releases quite often and have plenty of things happening.