Exploits Discovery: Eric Sprott-Backed Junior Sitting on $10M Treasury with 680,000 Gold Ounces

• Exploits Discovery sold its Newfoundland assets to New Found Gold for CAD$7 million in shares plus earn-outs.
• Company went from zero resources to 680,000 ounces across four properties in four months, including 300,000 ounces at Hawkins, Ontario
• $3.6 million cash plus New Found Gold shares creates CAD$10+ million treasury value against CAD$11 million market cap
• Three Quebec properties under option from Cartier Resources show exceptional grades including 356 g/t gold over 0.6 meters at Fenton
• Management prioritising systematic exploration across 60km Hawkins property and high-grade Quebec assets with experienced technical team

Exploits Discovery Corp. has executed a strategic transformation that positions the junior mining company for significant value creation in the current high gold price environment. CEO Jeff Swinoga outlined how the company has fundamentally restructured its portfolio. The company's strategic pivot comes at an opportune time, with gold prices reaching $3,600 per ounce and creating amenable conditions for exploration and development companies.

Strategic Divestiture Creates Immediate Value

The cornerstone of Exploits Discovery's transformation was the recent sale of its Newfoundland assets to New Found Gold, a transaction that immediately unlocked substantial value for shareholders. The deal structure provides CAD$7 million in New Found Gold shares upfront, with an additional CAD$1.8 million in shares upon delivery of remaining properties, plus a 1% net smelter return (NSR) royalty for future upside participation.

This transaction is particularly compelling from a valuation perspective. The combined value of the New Found Gold shares and existing cash positions the company with approximately CAD$10-11 million in treasury value against a current market capitalisation of just CAD$11 million, creating an immediate discount to net asset value that provides downside protection for investors.

Building a Substantial Resource Base

Perhaps the most significant achievement has been the rapid accumulation of resources across the portfolio. Four months ago, Exploits Discovery had no measured resources. Today, the company controls 680,000 ounces of gold across four high-quality properties in established mining jurisdictions.

The flagship Hawkins property in Ontario represents the largest component of this resource base, hosting over 300,000 ounces in the McKinnon zone. Located near Timmins in a 60-kilometer property package, Hawkins benefits from established infrastructure and sits within a prolific gold district. 

The property's geological setting mirrors that of other successful deposits in the region, with the McKinnon zone discovered by Don McKinnon, co-founder of the Hemlo gold mine. The company has hired Natalie Renaud, former VP Exploration of the previous operator, bringing deep institutional knowledge of the property's potential.

Quebec Portfolio Offers High-Grade Upside

Complementing the Ontario resource base are three Quebec properties under option from Cartier Resources: Fenton, Wilson, and Benoist. These assets, located two hours north of Val-d'Or, demonstrate exceptional high-grade potential that could drive significant resource expansion.

The Fenton property has delivered some of the most impressive results, including 356 grams per tonne gold over 6 meters as part of a larger intercept. 

"We're seeing this and we're saying, well, if we can increase the probability of finding more high-grade with the known resource or historic resource that you know from the 1990s, and also increase the probability of actually finding new areas underneath these EM anomalies, then what a great opportunity for us."

The Wilson property features similar high-grade chimney-style mineralization, while Benoist hosts 240,000 ounces of gold resources beneath a lake feature. The flexible option structure allows the company to focus capital on the most promising targets while maintaining exposure to all three properties over a five-year term.

Interview with Jeff Swinoga, CEO, Exploits Discovery

Systematic Exploration Approach

Rather than rushing into drilling programs, management has adopted a methodical approach to maximise exploration success. The strategy involves comprehensive review of existing data with fresh geological perspectives, advanced geophysical modelling, and strategic targeting before committing drill capital.

"We're not trying to rush the drill bit because once we start drilling we want to be successful. We want to make sure that we're not just drilling the known resource when there could be something bigger beside it."

This approach is particularly relevant at Hawkins, where the 60-kilometer property package offers substantial exploration upside. Historical drilling by previous operators like Goldfields returned results including 40 grams per tonne over one meter to the west of the known resource, while eastern portions remain largely unexplored. The company has engaged Verify to conduct 3D geological modelling to better understand structural controls and identify high-priority targets.

Financial Strength Enables Aggressive Exploration

The combination of the New Found Gold transaction proceeds and existing cash provides substantial financial flexibility for exploration programs. With Eric Sprott maintaining a 14% shareholding and the strong balance sheet position, the company can pursue aggressive exploration across its portfolio without immediate dilution pressure.

The flexible Quebec option structure further enhances capital efficiency, allowing the company to allocate resources to the highest-return opportunities. 

"We can spend all the money on one property and keep the other two or we can actually drop two properties, keep one." 

Market Opportunity and Timing

The strategic repositioning comes at an ideal time in the gold market cycle. With gold prices at historically high levels and increasing institutional interest in precious metals, junior gold companies with substantial resources and exploration upside are attracting renewed attention from investors.

The company's portfolio diversity across Ontario and Quebec provides exposure to two of Canada's most prolific gold jurisdictions while maintaining the operational advantages of domestic operations. The combination of established resources at Hawkins and high-grade exploration targets in Quebec creates multiple pathways to value creation across varying market conditions.

The Investment Thesis for Exploits Discovery

• Immediate Value Creation: $10+ million treasury value against $9 million market cap provides significant discount to net asset value with built-in downside protection
• Substantial Resource Base: 680,000 ounces across four properties represents dramatic transformation from zero resources four months ago, with proven geological potential
• High-Grade Exploration Upside: Quebec properties demonstrate exceptional grades (356 g/t over 6m at Fenton) with systematic exploration approach targeting resource expansion
• Strategic Portfolio Balance: Combination of established resources at Hawkins (300,000 oz) and early-stage high-grade targets provides multiple value drivers
• Experienced Management: Proven track record of value creation through strategic transactions and technical team with property-specific expertise
• Financial Flexibility: Strong balance sheet enables aggressive exploration without near-term dilution while maintaining optionality across portfolio
• Jurisdiction Advantage: Assets located in tier-one Canadian mining jurisdictions with established infrastructure and favorable regulatory environment
• Market Timing: Portfolio restructuring completed during favorable gold price environment with increasing institutional interest in precious metals sector

TL;DR

Exploits Discovery has executed a strategic transformation from Newfoundland explorer to diversified Canadian gold company with 680,000 ounces across four properties and CAD$10+ million treasury value against CAD$11 million market cap. The New Found Gold divestiture created immediate value while Quebec option assets offer exceptional high-grade upside (356 g/t over 6m at Fenton). Strong financial position enables systematic exploration across 60km Hawkins property and high-grade Quebec targets without near-term dilution pressure.

FAQ's (AI Generated)

Q: What makes the Hawkins property attractive for exploration?

60km property package near Timmins with 300,000 oz McKinnon zone resource, discovered by Hemlo co-founder. Extensive exploration upside along contact zones with historical high-grade hits.

Q: How does the Quebec option structure benefit shareholders?

 Flexible five-year terms allow capital allocation to highest-return targets. Companies can focus spending on one property while retaining rights to others, optimising exploration efficiency.

Q: How does current gold pricing impact the investment thesis?

$3,600 gold enhances the economics of existing 680,000 oz resources while making exploration targets more valuable. Higher prices improve development feasibility across portfolios.

Q: What differentiates Exploits Discovery from other junior gold companies? 

Immediate NAV discount (CAD$10M treasury vs CAD$11M market cap), substantial resources acquired in four months, high-grade Quebec targets, and experienced property-specific technical team.

Q: What are the key risks for investors to consider?

Exploration risk at early-stage Quebec properties, gold price volatility impact on New Found Gold shares, and execution risk on systematic exploration programs.

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