ValueTheMarkets Logo
Stock Market Review for the Retail Investor
Features

Progress at Pan and Gold Rock pushes Fiore Gold towards 150,000-ounce-a-year gold production

09 Dec 2020 | by: Daniel Flynn

FIORE GOLD (TSX-V:FOTCQB:FIOGFFSE:2FO)

This Nevada-focused gold player has finished its record 2020 on a high with key exploration and reserve updates…

Expanding production, booming gold prices, strong exploration success…

These are just a few of the reasons why Fiore Gold (TSX-V:FOTCQB:FIOGFFSE:2FO) has enjoyed such an excellent 2020.

The Nevada producer has hit company record after company record this year, notably delivering its best-ever quarterly cash flow (US$10.5m) and earnings (US$5.7m) figures in results released in August.

And this excellent progress in the face of the Covid-19 pandemic has not been missed by the market. Since the middle of March, shares have nicely risen in value to reach the C$1.50 they sit at today.

But Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) is not resting on its laurels.

In the past month, the company has crossed not one, but two operational milestones that put it firmly on the road to meeting its long-term goal of becoming a 150,000-ounce-a-year gold producer.

Replenishing ounces at Pan

FIORE GOLD (TSX-V:FOTCQB:FIOGFFSE:2FO)

The most recent of the two updates came from the Pan mine, Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) cash engine in Nevada fueling its aggressive growth targets.

The company recently completed a large programme of expansion drilling in the vast land package surrounding this producing open pit, heap leach project. The goal was simple – to define more gold reserves and resources to extend Pan’s life of mine beyond the three years at which it had sat.

And this is exactly what Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) has done.

In December, the firm revealed an upgraded Proven and Probable Mineral Reserve estimate of 290,500 ounces (“ozs”) for the mine alongside updated Measured and Indicated resources of 427,400ozs.

This is significant for two reasons.

First, assuming that mining rates continue at-or-around this year’s level, Pan’s new reserve estimate extends its life of mine out by a further two years to 2025.

Remember this date- it will become all the more critical shortly.

Second, the updated 290,500oz mineral reserves figure for Pan is right up there with the 318,000ozs published in Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) first estimate made back at company inception in 2017.

In other words, Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) has almost entirely replenished every ounce of gold it has mined over the last three years of growing production.

RESERVE AND RESOURCE UPDATE

RESERVETONS (000s)GRADE (oz/st)GRADE (g/t)CONTAINED GOLD (Au koz)
PROVEN11,4260.0140.47158.3
PROBABLE12,0310.0110.38132.2
PROVEN + PROBABLE23,4570.0120.42290.5
PROBABLE LEACH PAD26
INVENTORY (Recoverable)
TOTAL PROVEN + PROBABLE317
Table 1. Pan Mine Reserve Statement (effective June 30, 2020)

All the better, the exploration dollars spent on replacing these reserves and resources – around US$1.5 million annually – have come without any dilution from shareholders through equity raises or taking on corporate debt.

There’s plenty more unexplored ground around Pan and a new programme of resource and reserve expansion is now underway…

So, Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) is positioned well to continue this strategy of repeatedly extending the project’s life by replacing mined ounces with exploration ounces well into the future.

As Tim Warman, Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) chief executive puts it…

“FIORE’S EXPLORATION TEAM HAS ONCE AGAIN ADDED RESERVES AND EXTENDED THE MINE LIFE AT THE PAN MINE WELL INTO 2025. OUR UNDERSTANDING OF THE GEOLOGY AND CONTROLS ON MINERALIZATION AT PAN HAS IMPROVED TREMENDOUSLY OVER THE PAST THREE YEARS AND THE TEAM WAS ABLE TO SUCCESSFULLY TARGET NEW AREAS OF MINERALIZATION PARTICULARLY AROUND THE NORTH PIT, AS WELL AS IDENTIFYING POTENTIAL NEW AREAS SUCH AS THE MUSTANG TARGET.”

“THE NEXT PROGRAM OF RESOURCE AND RESERVE EXPANSION DRILLING IS ALREADY UNDERWAY AT PAN, AIMED AT DEFINING THE RESOURCES THAT SHOULD SEE PAN CONTINUING TO OPERATE FOR MANY YEARS TO COME.”


TO READ MORE ABOUT FIORE GOLD’S PLANS TO BECOME A 150,000 OUNCE-A-YEAR PRODUCER, GET OUR FREE REPORT


On track at Gold Rock

FIORE GOLD (TSX-V:FOTCQB:FIOGFFSE:2FO)

The extension of mine life at Pan came hot on the heels of an update at Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) other key Nevada project – Gold Rock.

With an estimated 403,000 ounces of indicated gold and 84,300 ounces of inferred gold at grades 30% higher than Pan, Gold Rock is the company’s core growth engine.

Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) has already made strong progress in taking Gold Rock towards production.

The project is already federally permitted. It is based just eight miles away from Pan, so existing infrastructure and management can be shared. And a recent preliminary economic assessment gave the project a post-tax NPV of US$99.4 million and a post-tax IRR of 39.1% based on 55,800 ounce-a-year production at a US$1,700 gold price.

NowFiore (TSX-V:FOTCQB:FIOGFFSE:2FO) is on track to cross its next major Gold Rock milestone on schedule in the second half of 2021 – the delivery of a Feasibility Study.

In a November update, the firm revealed the first set of results for its 2020 drilling at the project. The work delivered some of its best intercepts to date, including 48.8 meters of 2.17 grams per ton gold, 32 meters of 1.41 grams per ton gold, and 38.1 meters of 1.11 grams per ton gold.

Critically, this drilling programme will be used to expand resources for the Gold Rock Feasibility Study. And in its update, Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) also revealed that many other work programs in support of this work are progressing well.

This includes large diameter metallurgical core holes and the first round of HQ core holes, including detailed geotechnical logging, with geological logging and sampling underway.

If Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) can deliver its feasibility study for Gold Rock on time, then it puts it well on track for entering production by 2023 as planned.

This would be transformational.

With Pan’s mine of life now extended out to 2025, Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) would be primed for meeting its long-running operational goal of having the two projects operating in unison. This would take total gold production to more than 100,000 ounces-a-year.

Meanwhile, work to find a third project that adds another >50,000 ounces of annual production is also well underway.

The window is well and truly wide open for Fiore (TSX-V:FOTCQB:FIOGFFSE:2FO) to meet its 150,000-ounce production target within the next few years.

On a transformational growth path

FIORE GOLD (TSX-V:FOTCQB:FIOGFFSE:2FO)

Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) path to becoming a mid-tier gold producer is becoming clearer and clearer with every update it releases.

This obviously means increased cash flows in a mining sector where cash is very much king…

But it also puts the business firmly in the sights of institutional mining investors with the financial firepower to propel it to even greater heights.

Fiore’s (TSX-V:FOTCQB:FIOGFFSE:2FO) share price has already risen well this year. But if the company’s momentum continues, then even these strong returns could be far outstripped by the long-term value on offer.


DOWNLOAD OUR SPECIAL REPORT FOR A DEEP DIVE INTO FIORE GOLD’S LEADING NEVADA-WIDE GOLD PORTFOLIO


IMPORTANT NOTICE AND DISCLAIMER

PAID ADVERTISEMENT

This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Fiore Gold to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and eighty-three thousand USD to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.

CHANGES IN SHARE TRADING AND PRICE

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.

NO OFFER TO SELL OR BUY SECURITIES

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

INFORMATION

Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.

NO FINANCIAL ADVICE

The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.

TERMS OF USE AND DISCLAIMER

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.

AUTHORS: VALUETHEMARKETS

valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.

Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

  • Daniel Flynn does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
  • Daniel Flynn has been paid to produce this piece by the company or companies mentioned above.
  • Digitonic Ltd, the owner of ValueTheMarkets.com, has been paid for the production this piece by the company or companies mentioned above.

RNS Responses