Ethos Gold (ECC) - High Risk, High Return & Good Karma

Ethos Gold Corp. is an exploration company with strong finances and a collective mining experience of over 100 years. Their headquarters are based in Vancouver, Canada. The company is registered on the Toronto Stock Exchange (TSX: ECC) and the OTC market (OTCQX: ETHOF). Their current market capitalization starts at $26.2M. Ethos Gold is a part of the Discovery Group of companies. Perk Rocky, British Columbia, Schefferville Project, Quebec and Toogood, Newfoundland are the company's major exploration sites. 

We met with Alex Heath, President, CEO, and Director at Ethos Gold, joining us from Vancouver. Alex has more than 15 years of experience in investment banking and capital markets. Alex joined Ethos Gold in November 2020, back then, the company had a total of 11 projects, leading to the spending of $10M in overall budgets.

The overall costs for maintaining multiple projects has led the company to strategize their exploration approach. They plan to invest $10,000-$100,000 towards the first stage of a project while running feasibility tests and consultation with the technical team to decide whether the site should be pursued further or dropped in favor of another project.

Company overview

Ethos Gold is an exploration company with an expansive portfolio of properties located within Canada. The company's projects are spread across Ontario, British Columbia, Quebec, and Newfoundland. The company is seeking a large-scale property with over 2km strike length. The ongoing projects have de-escalated risk through various option agreements in place. The company's strategy is targeted towards discoveries and generating value.

Kodiak is the sister company of Ethos Gold under the Discovery Group's portfolio. In 2020, Kodiak found 0.76g copper equivalent reserves which led to a market cap growth crossing $100M along with an additional $12M raised through tax. Ethos Gold is focused on replicating this strategy at the Perk Rocky site. 

Ethos Gold currently has a portfolio of 9 projects out of which 2 are based in British Columbia, 5 in Ontario and 4 contiguous land packages with an iron formation called the Savant Lake project. The company also has a large-scale site in Quebec, the Schefferville project that features over 60km of strike. This project is spread across an area of 115 square km and is located 100km north of Newfound Gold. This area remains largely unexplored but offers significant potential.

The Perk Rocky Copper-Gold Porphyry Project

The Perk Rocky project was acquired by Ethos Gold in 2019 and is the company's most advanced project. Phase 1 of the project consists of the initial groundwork, while Phase 2 is drilling. The groundwork at this site is complete and Ethos Gold recently commenced the drilling program at this site.

The company is taking a cautionary approach towards the drilling program as they have allocated $1M at the Perk Rocky site. This amounts to a minimum of 4 drill holes of 500m each. The initial 2000m drilling project is open for expansion up to 10,000m based on the initial findings.

The drilling operation is carried out centrally at large-sized porphyries. This approach provides significant insight into the feasibility of the project, which can be used to decide between further exploration or moving on to a different site.

The project is being managed by Al Wainwright, a Ph.D. in Geology with a dissertation on Oyu Tolgoi, Mongolia, the site of the largest gold and copper reserves globally. Al has diligently prepared a checklist to identify potential targets within the British Columbia region. This checklist includes factors such as surface alteration, copper-gold surface mineralization, the scale of the project, and vectors focused towards porphyry target clusters.

Schefferville Project, Quebec

The Schefferville project in Quebec is headed by Rob Brozdowski, a Ph.D. geologist with more than 30 years of experience in exploration in magmatic nickel, copper, uranium, VMS, SEDEX, and IOCG deposits.

Additionally, a group of geologists are working on the Newfoundland site. This enables the company to advance multiple projects at once and plan drilling operations accordingly. 

The Toogood Project, Newfoundland

The Toogood site at Newfoundland is currently on hold due to the logistical challenges, harsh weather, and ongoing covid restrictions. The company has already discovered gold reserves on the site's surface.

The time required to source drilling permits at the Schefferville site can postpone the operations, meanwhile, the company is focused on Newfoundland as the timeline for acquiring a drilling permit is significantly shorter. 

A Team of Experts

Ethos Gold has a strong team of geologists, advisors, mining veterans, and financial experts. They have multiple technical advisors assigned to each project.

The technical team is led by Rob Carpenter, CTO, Ethos Gold. Rob has over three decades of experience in mineral exploration. He is also the Present, CEO, and Co-Founder at Kaminak Gold Corporation. Rob is currently heading the Ontario projects. 

Dan MacNeil is an Economic Geologist with over 19 years of experience in precious and base metal exploration across multiple continents. Dan is currently overseeing the BC properties.

Financial capabilities

Ethos Gold currently holds USD $5M in cash reserves. Additionally, the company also acquired 6.5M shares at Nevada King, which are evaluated at $4M. The gross working capital stands at $12M.

Additionally, the company has seen a growth in its share prices in the past two weeks, along with institutional investments from Crescat capital. This growth was in line with the announcement of drilling operations at the Perk Rocky site, which has generated significant interest in the market.

The benefit of having multiple projects allows diversification of the exploration, which offers a better risk-reward ratio for the company. It gives them the freedom to drop a project and move on to a different site in case the initial results do not match the feasibility norms. The project can be repurposed as a joint venture while the finances can be arranged via share options.

The company's strong financial backing along with option agreements allows for quick decision-making on projects that enables significantly quicker advancements of properties. Ethos Gold will continue the drilling operations at the Perk Rocky project while focusing on the Newfoundland and Schefferville project in Quebec.

To find out more, go to the Ethos Gold website.