Precipitate Gold (PRG) - Discounted Stock Valued at Cash in Hand?

Precipitate Gold Corp. is a Canadian mineral exploration company, with assets it is focused on developing located in Newfoundland Canada and the Dominican Republic. The Company’s projects include the Motherlode, Ponton, Pueblo Grande and Juan de Herrera projects. The Motherlode project is located in the southeastern region of Burin Peninsula in Newfoundland and holds a 12,350-hectare land position. The Ponton project is a 3,250-hectare land package which is located in the Dominican Republic, 35 km east of the Pueblo Viejo mining operation, owned by Barrick Gold Corp. The Pueblo Grande project is a 7,106-hectare land package located 50 km north of the capital city of Santo Domingo in the Dominican Republic. The company’s Juan De Herrera project is also located in the Dominican Republic covering a 12,746-hectare land position adjacent to GoldQuest Mining's Tireo project.

The company announced on the 17th of October 2022, that it had initiated a diamond drilling program at the Motherlode project. The diamond drilling program came after the company announced on the 6 of October 2022, that it had received the government permit for diamond drill testing at the Motherlode Gold project. The permit included the approval of diamond drilling from up to 22 drill platforms at various key locations within the project. The diamond drilling program is expected to consist of more than 2,000 m of drilling.

The permitting is the result of the successful IP and Magnetic survey conducted by the company at the project. The company announced on the 8th of September 2022 that it had completed the announced IP and magnetic geophysical survey at the Motherlode project. The survey was able to identify various new drill targets. The highlights of the IP survey completion included the identification of a 500 m long gradient chargeability zone extending northeast from the surface gossan. The gradient chargeability high anomalies are open along strike to the northeast and below the estimated survey depth limit of 300 m vertically below the surface.

The Dominican mining environment has recently shown hesitance in the development of new mining operations, which has led the international mining community to show some concern. The Caribbean nation, despite the support for mining from its President Luis Abinader, has shown delays in permitting specifically due to strong opposition from environmental campaigners, residents and church and political leaders. Precipitate Gold Corp. is actively underway with working with the country’s government, to be able to fast-track any possible future mining operations. The company believes in the future of the mining sector in the Dominican Republic further believing that major mining companies such as Barrick Gold Corp. would not be investing in operations in the country, without a positive outlook.

Management

Jeffrey Wilson is the President, CEO and Director of Precipitate Gold Corp. and holds more than 25 years of experience in mineral exploration and mining investment. Wilson has throughout his career been involved with various equity financings, which range from initial public offerings (IPOs) to private placements and brokered financings. He was previously a director of both Welcome Opportunities Ltd., bought out by Endeavour Mining Capital in 2002 as well as Aquiline Resources Ltd., which was bought out by Pan American Silver in 2009.

Arian Fleming is the chairman of the company’s board and brings with him more than 40 years of experience in exploration, project development and mining operations. Fleming has been a director of various publicly traded companies and founded Underworld Resources in 2006, which was acquired by Kinross Gold Corp. in 2006 for CAD$ 130 million.

Stephen Sulis joined Precipitate Gold Corp. in September 2022 and is Chief Financial Officer for the company as well as various TSX-V and CSE-listed companies. Sulis has a vast amount of experience in financial reporting for exploration and mining companies as well as the implementation of internal control policies and conducting various equity financings.

Michael Moore is the Vice President of Exploration for the company and is a professionally registered geologist with more than 25 years of experience. He has been involved in various mineral projects, ranging from grassroots to advanced exploration stages in base, precious and industrial metals.

Mejico Angeles-Lithgow serves as Advisor to the company and is a Dominican national who, until March 2018 held the position of President and Executive Director of the Barrick-Pueblo Viejo mining operation in the Dominican Republic. He brings with him the necessary experience needed to navigate the Dominican mining sphere.

The management team of Precipitate Gold Corp. is rounded out by Alistair Waddell and Lon Shaver who both serve as Directors of the company. Waddell is a geologist with more than 20 years of experience in the mineral industry with both junior and major mining companies. He is a founder and the former President and CEO of GoldQuest Mining Corp. and is well-versed in the Dominican Mining space. Shaver is a CFA with more than 25 years of experience in corporate finance within Canadian Mining companies. He previously spent 13 years in investment banking roles and is currently also Vice President of Silvercorp metals.

The management team of the company is tasked with advancing the company’s various projects.

Projects

Precipitate Gold Corp. holds a combination of staking and property options to acquire 100% of the Motherlode project located in Newfoundland Canada. The project holds a land position of 12,350 hectares and is located in the southeastern region of Newfoundland’s Burin Peninsula. The Motherlode project hosts historical gold mineralisation of up to 25.0 g/t of gold in grab samples as well as 3.2 g/t of gold over 0.7 m.

The Pueblo Grande project is a 7,106 -hectare land package located 50 km north of the capital city of Santo Domingo in the Dominican Republic. The project hosts gold, silver and copper mineralisation with historical drilling results showing 4.76 g/t of gold and 23.0 g/t of silver over 23.4 m. The project is 100%-owned by precipitate Gold Corp. holding a USD$ 10 million earn-in agreement with Barrick Gold Corp. The earn-in agreement gives Barrick Gold Corp. the ability to earn a 70% interest in the project through exploration initiatives, the conducting of 7,500 m of exploration drilling over 6 years and the delivery of a pre-feasibility study.

The Ponton project is a 3,250-hectare land package which is located in the Dominican Republic, 35 km east of the Pueblo Viejo mining operation, owned by Barrick Gold Corp. The project hosts multiple targets for epithermal gold mineralization as well as possible copper-gold porphyry-style deposits. The company’s Juan De Herrera project is also located in the Dominican Republic covering a 12,746-hectare land position adjacent to the Tireo project owned by GoldQuest Mining Corp. The project hosts both copper and gold mineralisation with district-scale potential.

Motherlode project’s recent activities and Pueblo Grande Earn-In agreement

Precipitate Gold Corp. on the 21st of June 2022 announced that it had initiated a ground geophysical survey at the Motherlode project. The magnetic and induced polarisation (IP) survey at the high-priority Motherlode Zone, was planned to consist of 11 lines at 100 m spacing for an estimated total of 7.5 line kilometres. The surveys were aimed at covering a 1,000 m portion of the project’s laterally extensive shear-structure trend which bisects the Motherlode zone in a northeast-southwest direction.

The company announced on the 8th of September 2022 that it had completed the announced IP and magnetic geophysical survey at the Motherlode project. The survey was able to identify various new drill targets. The highlights of the IP survey completion included the identification of a 500 m long gradient chargeability zone extending northeast from the surface gossan. The gradient chargeability high anomalies are open along strike to the northeast and below the estimated survey depth limit of 300 metres vertically below the surface.

Precipitate Gold Corp. on the 6th of October 2022, announced that it had received the government permit necessary to conduct diamond drill testing at the Motherlode Gold project. The permit included the approval of a diamond drilling program at various key locations within the project. The program is expected to consist of more than 2,000 m of drilling and was initiated on the 17 of October 2022.

The company holds an earn-in agreement with Barrick Gold Corp. for 70% of its 100%-owned Pueblo Grande project. The project can provide Precipitate Gold Corp. with an upside through no capital expenditure of its own. Barrick Gold Corp. must spend USD$ 1.5 million before April 2022, in order to fulfil its contractual obligations with regard to the earn-in agreement. Jeffrey Wilson explains:

“Barrick is obligated to spend USD$ 10 million over 6 years to earn 70% interest in that project. So Barrick continues to explore. They've got relatively tight timelines to spend those exploration dollars. It increases over time, but they'll spend a million and a half dollars between now and April if they want to maintain their right to that so there will be news flow there. There is work progressing there without depleting our treasury.”

Dominican Republic mining sector

The Dominican mining environment has recently shown hesitance in the development of new mining operations, which has led the international mining community to show some concern. The Caribbean nation, despite the support for mining from its President Luis Abinader, has shown delays in permitting specifically due to strong opposition from environmental campaigners, residents and church and political leaders. Precipitate Gold Corp. is actively underway with working with the country’s government, as explained by Wilson, to be able to fast-track any possible future mining operations.

“We've been working with the Dominican government on a number of different fronts on our other assets in the other part of the country where we're adjacent to a company called GoldQuest who has a several million-ounce deposit that they're trying to get permitted. We are ready to continue to re engage work there if and when the political environment is correct for us to do that.”

The company believes in the future of the mining sector in the Dominican Republic further stating that major mining companies such as Barrick Gold Corp. would not be investing in operations in the country, without a positive outlook.

“I think that Barrick would not be taking on an Earn-in agreement with Precipitate if Barrick did not believe that the Dominican Republic was a country that they could hunker down and expand their operations and identify more resources within the country.”

Future

Precipitate Gold Corp. believes that its current cash position of CAD$ 8.3 million provides it with the opportunity to advance its projects as it sees fit. The company believes that through its cash position, and its exploration initiatives it will be able to create value for its shareholders in the downed mineral market. 

“What’s going to move the needle? For me, in this market, no question it's having cash, unallocated hard dollar cash that we can spend as we see fit. That's number one. Number two, what do you want as an investor to move the needle for junior exploration stock? Drill assay results, discovery potential. That's the one catalyst that can drive a share price from 10 cents to who knows what?”

The company will continue with its exploration initiatives further enabling it to showcase the value of its portfolio to potential major mining companies.

“I feel as if we've got cash, we've got drilling underway, we've got assets that are at the ready in terms of reengaging with drilling and all of that with a team that I think has a track record for finding deposits and resources that mid-tier and major companies want to buy.”

To find out more, go to the Precipitate Gold website