Ethos Gold (ECC) - Sprott Invests in Newfoundland Gold Explorer

Ethos Gold Corp. is an exploration company with strong finances and a collective mining experience of over 100 years. Its headquarters are based in Vancouver, Canada. The company is registered on the Toronto Stock Exchange (TSX-V: ECC) and the OTC markets (OTCQX: ETHOF). 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 flagship assets. 

Matt Gordon caught up 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. 

Company Overview

Ethos Gold is an exploration company with an expansive portfolio of properties located within Canada. The company's 9 projects are spread across Ontario, British Columbia, Quebec, and Newfoundland. The company has been successful in de-risking its ongoing projects through various option agreements. The company's strategy is targeted towards discoveries and value generation. Ethos Gold seeks to attain large discoveries throughout Canada in historically under-explored regions. 

The Sprott Investment

Ethos Gold was recently approached by Eric Sprott for a $2M placement. He also invested $48M into Newfound Gold, showcasing his interest in Newfoundland assets. Ethos Gold is looking to carry out exploration at its Newfoundland site through a systematic approach that will be followed by drilling operations. This is because the property is significantly large and a planned approach would be the ideal exploration strategy. 

The company recently appointed Jodie Gibson as a technical advisor. Jodie was awarded the Yukon explorer of the year in 2020 and has extensive experience in this area. 

A Landmark Discovery

Ethos Gold's Toogood project is a 180km2 land package situated 100km north of Newfound Gold's operations. The company has made recent discoveries on this site prior to initiating drilling operations. The company found visible gold at the surface within the areas that had historical gold shillings. It featured high-grade 200g/t gold reserves. 

About 40m away from this site, the company discovered a boulder featuring close to 8,000g/t grab sample. Through discussions with local geologists, it was apparent that the boulder originated from a nearby area that was historically underwater. It was found that glacial movements were responsible for the relocation of this extremely high-grade boulder. Currently, the company is carrying out sampling in this area. 

A group of geologists from the Newfoundland government assessed the site and it was found that between 10,000-20,000 years ago, this area was underwater. The boulders are in-situ, originating from nearby areas. 

Ongoing Exploration

Ethos Gold currently has 2 targets identified at the Toogood Project. It is working closely with Jodie Gibson to define a minimum of 5-10 targets to initiate a drill campaign. As part of the systematic exploration approach, the company is planning to carry out trenching across the existing veins before commencing drill operations. 

The Perk-Rocky Copper-Gold Porphyry Target

Ethos Gold carried out drill operations at Perk-Rock in June 2021. The Perk-Rocky target is an 8km by 5km site where 2,000m drilling was performed over 6 holes. Based on the assays, the company is looking to remodel the project and work towards assessment. This was done as no major discoveries were made within this drill program. 

Ethos Gold has received interest from potential JV (Joint Venture) partners. This deposit features very large systems that need significant capital for drilling. The company is assessing between drilling this deposit on its own or entering a JV with a company for the $2M program. The Perk Rocky Project has received a lot of interest from other mining companies including K2 Mining and the Discovery Group of Companies. 

The Schefferville Project

The Schefferville Project in Quebec is spread across a 400km2 land area and features over 70km strike length. This project features an iron-hosted formation spanning over 70km. This formation contains 53 occurrences of gold ranging between 1g/t-170g/t. 

Ethos Gold recently published a press release concluding phase 1 of exploration. This phase consisted of ground-truthing where the company's team sampled the site and identified 44 potential targets. Phase 2 will consist of identifying additional targets which will be drilled in 2022. 

Cash Position

Ethos Gold currently has $8M in working capital and 9 projects in its portfolio. The company is taking a systematic approach towards advancing its projects. Currently, the Toogood project is the top priority as a result of the big discovery following the recent exploration program, followed closely by the Schefferville Project. The company is taking an efficiency-driven approach towards capital allocation. 

Targets 2021 and Beyond

Ethos Gold is planning to publish an update on the Toogood project within the next 2 weeks. This update will provide specifics on the trenching process and future drill plans. At the Schefferville Project, the company has announced phase 2 of the program, with a drill program planned for 2022.

The Perk-Rocky site is planned for advancement as the company assesses joint venture considerations. The remaining projects in Ethos Gold's portfolio will be advanced once a discovery has been made.

To find out more, go to the Ethos Gold Website