Gold Line Resources - High-Grade Gold In Sweden & Finland

Gold Line Resources Ltd. is a Canadian junior exploration company, focused on its assets in Sweden and Finland. The company’s assets are comprised of the Oijärvi Project located in the  Oijärvi Greenstone Belt of Finland as well as the Solvik Gold Project, Kankberg Norra and Långtjärn property in the Skellefteå Belt and the Blabarliden and Paubacken property all located in the Gold Line Mineral Belt of Sweden.

Matthew Gordon spoke with Adam Ciegelski the CEO of Gold Line Resources (TSX-V: GLDL) to discuss the company's recent activity.

Company Overview

The company recently announced that it had concluded and closed a non-brokered private placement financing that saw the company receive gross proceeds of USD$ 4,100,000. The private placement included members of the Sprott Group of companies acting as finders and consisted of the issuing of 25,625,000 units consisting of one common share and one common share warrant at a price of USD$ 0.16 per unit.

The proceeds of the concluded private placement financing will be implemented to complete the second phase of reconnaissance drilling at the company’s Paubäcken property. The gross proceeds will also be implemented for general working capital purposes.

The second phase of reconnaissance drilling at the company’s Paubäcken property is envisioned to be an aggressive drill program that will be aimed at resource determination as well as the identification of targets for its planned diamond drilling program. Gold Line Resources Ltd. has not yet given formal guidance regarding its 2022 drilling campaign but believes that it will comprise between 2,900 and 5,000 m at its Swedish assets specifically.

The company is fully capitalised to conduct its envisioned exploration program and will exercise its warrants should it be necessary. The potential gross proceeds to the company should they exercise the warrants at USD$ 0.18 is USD$ 2 million.

Management

The company is led by Adam Cegielski who serves as CEO and director. Cegielski has spent more than 20 years in the venture capital industry, with his experience in the field ranging from mineral exploration and technology to health care and education. Cegielski started his career in Uganda where he was involved in the development of an industrial mineral project, which was later sold to Rio Tinto. He was also a founding director of Cayden Resources, which was sold to Agnico Eagle Mines Limited for USD$ 205 million in 2014. Cegielski is involved in various industries including being the founding member, CEO and director of Binovi Technology Corp.

Edine Bakker is the Exploration Manager of the company. Bakker has over a decade’s experience in the mineral exploration sector across Europe. She is a geologist by training and holds a Bachelor of Science degree in Geology from Vrije Universiteit Amsterdam, as well as a Master of Science (MSc) degree in Economic Geology from Eidgenössische Technische Hochschule Zürich. Bakker has extensive experience in various commodities as well as in greenfield and near-mine exploration programmes.

Szascha Lim is the Chief Financial Officer (CFO) and Corporate Secretary for Gold Line Resources Ltd. Lim holds a Bachelor of Commerce degree with honours from the University of British Columbia and is a certified public accountant (CPA). Lim has extensive experience in the financial aspects of operating a publicly-traded company and has been involved in a wide variety of sectors including such as CBD and junior mining and exploration.

The management team of the company is tasked with the advancement of its various assets located in both Finland and Sweden.

Assets

Gold Line Resources Ltd. holds six exploration properties in total, which are located in both Finland and Sweden. The exploration properties are in various life cycle phases with them ranging from early to advanced-stage properties. The Swedish assets of the company are the Paubäcken property, Storjuktan property, Blåbärliden property, Kankberg property, and the Solvik Gold Project, which are all located in the Gold Line Mineral Belt of Sweden.

The Paubäcken property of the company is a 100%-owned 17,097-hectare land package. The property hosts multiple mineralisation targets namely the Stortjarnhobben, Harpsund, Sjoliden and Svartliden East targets. The property is located between three significant gold deposits. The three gold deposits consist of the Barsele Gold Project, a joint venture between Agnico Eagle Mines Limited and Barsele Minerals Corp. as well as the Svartliden Mine and Production Centre and the Fäboliden gold project owned by Dragon Mining Ltd.

The Paubäcken property has shown historical gold mineralisation, before it was acquired by Gold Line Resources Ltd. The historical mineralisation includes intercepts with 34.5 g/t gold over 1.0 m as well as multiple grab samples of up to 60 g/t gold. The company has conducted various exploration initiatives at the property since its acquisition and plans to focus its attention on the Aida and Harpsund Bell targets in the near future.

The Oijärvi gold project of the company is located in Finland. The Oijärvi gold project is a 17,600-hectare land package in which the company owns 100% interest. The project lies within the Oijärvi greenstone belt, one of the most underexplored mineralisation belts in Finland. The property has seen 292 diamond drill holes to date, with 232 of those holes showing mineralisation intercepts of more than 2 g/t gold. The diamond drill holes also showed intercepts of 22.6 g/t Au and 126.3 g/t of Ag over 8 m starting at 102.5 m. The project holds three exploration targets, namely the Kylmäkangas, Kompsa and Karahkalehto gold deposits. The Kylmäkangas deposit holds significant exploration potential with the deposit's shear zone mineralisation open to all directions. The deposit holds a historical mineral resource estimate (MRE) of 250,000 ounces of gold and 1,896,000 ounces of contained silver.

Sprott financing

Gold Line Resources Ltd. announced in early March 2022 that it had closed and concluded with a non-brokered private placement, which resulted in the company receiving the gross proceeds of USD$ 4.1 million. The private placement consisted of the issuing of 25,625,000 units at USD$ 0.16 per unit. A unit consisted of one common share of the company as well as one common share purchase warrant for the company. A warrant entitles the holder thereof to purchase one additional common share at a price of USD$ 0.25 for thirty-six months from the date of issue.

The private placement also included certain members of the Sprott Group of companies acting as finders. Cegielski is pleased with the outcome of the private placement and states:

“USD$ 0.16 financing unit with a full warrant at USD$ 0.25 so it positions Sprott at about a 15% ownership, which really is our first institutional investor. We're tier one jurisdiction, we have tier one projects, we've attracted some incredible talent and now we've got a tier one institutional investor.”

Allocation of the funds

The proceeds of the private placement will be implemented towards the completion of the second phase of reconnaissance drilling of the Paubäcken property as well as towards general working capital purposes. Cegielski states that the company aims to complete an aggressive exploration program at the Paubäcken property:

“… the balance of all the funds is going to be focused primarily on the new discovery. We've got permitting and planning done for Finland but really front and centre is the Paubäcken discovery. We've only really put 600 m into the ground. We'll have an aggressive drill programme starting there in late spring, early summer, and more base of till drilling, more aggressive base of till determination and really following that up with diamond drilling..”

The company is currently underway with the finalisation of its 2022 drill plan and will announce it in the near future. Cegielski is able to give an oversight of the planned drilling and states:

“…we are finalising that plan (the drill plan) right now. It's going to be somewhere between 2900 and 5,000m focused in Sweden specifically. And we'll probably do somewhere between 500 and 700 base-of-till holes going into the end of the summer. And again, as capital comes in, we've got potential for exercising warrants that will drive a greater budget, but right now we're fully capitalised to complete a drill programme into the summer. We have our targets identified; we're just finalising our permitting at this point.”

Future

Gold Line Resources Ltd. will continue to advance its projects in 2022, and through this aims to show its value to the investor market. Cegielski believes that the company is still undervalued at this point, and believes that as the major gold companies start to increase in valuation, the junior gold mining sector will start to follow, he states:

“We've got a little bit of work to do, the stock is USD$ 0.12 cents, and obviously incredibly undervalued. I think we are a USD$ 12 - USD$ 14 million market cap company today with cash in hand, with everything that we need, but typical of this market, the price of Gold is strong, the dynamics are strong for Gold and the Gold juniors are just not getting the interest that they justify it this time. But we've seen that before and we've seen that change quickly. I think we're starting to see the majors and the mid-tiers really starting to move up in valuation. And I think we all can appreciate that the juniors are sort of the laggers of a Gold cycle opportunity.”

The company is further planning to publish an updated mineral resource estimate (MRE) of the Oijärvi gold project in Finland in the next month, with Cegielski hinting at big developments and announcements possible in the near future:

“…we've got an updated resource coming out as well, we've been working on our Finland resource, which is a historical resource of 250,000oz. I think within the next month, you're going to see a bit of a surprise with what happens with that project. And ultimately, I think that could be a catalyst to really open up the market.”

The company will further continue its exploration at the Blåbärliden and Storjuktan projects in the coming year, with drill targets at the project already identified, including recognized gold anomalies. The exploration campaign of the projects may also possibly be conducted in a phased approach, with the company planning on raising further funds as it becomes necessary. The company may also exercise its warrants should it be necessary. The potential gross proceeds to the company should they exercise the warrants at USD$ 0.18 is USD$ 2 million. Cegielski sums up the company’s future plans eloquently and states:

“I think in the short-term, balance of holes to come out, resource coming out, new exploration starting and reporting of existing drilling that's going on with the base of till programmes over the winter.”

To find out more, go to the Gold Line Resources website