Fosterville South (TSX-V:FSX) - The story behind the HOTTEST gold IPO backed by WORLD FAMOUS MINING INVESTORS

By Patricia Miller


In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

You won’t know who he is yet, but Rex Motton might just be about to make you rich.

Once you learn Rex’s story, you will see clearly why.

It is so compelling, in fact, that:

  • It has already been backed personally by two world famous mining investors

  • The pre-IPO fundraise was five times oversubscribed

  • Some of the mining industry’s most prominent figures have rushed to get involved

The opportunity really is that astonishing.

The story began back when Rex was a boy.

Born and raised in one of the most prolific gold producing regions in the world, Rex grew up in Central Victorian goldfields and now lives just 20 minutes from the Fosterville Gold Mine in Australia.

This happens to be the highest-grade, lowest-cost gold mine currently in production. It hosts large resources of the precious metal and last year generated revenues in excess of $750,000,000, according to the most recent financial statements filed by the company.

Yet, just five years ago, Fosterville was viewed as a tired legacy asset.

It was only when the mine’s owner, Kirkland Lake Gold (TSX:KL) (NYSE:KL), used modern drilling techniques and new interpretation to discover high-grade gold in the Eagle Zone (and later the Swan Zone) that the project’s true potential became clear.

The company’s share price rocketed from C$2.20 in July 2015 to over C$60 in 2020 – a 27 TIMES RETURN achieved simply using new exploration thinking and drilling.

Remember this point.

It is central to what is in front of you right now.

But first let’s return to Rex’s early days.

As a teenager, he spent his time roaming the Central Victorian goldfields, prospecting for minerals in rocks. It is easy to picture a young man with a backpack, a map and a rock hammer.

He was always fascinated by these formations and this led him to have an extremely successful career as a professional exploration geologist.

This was his calling. His gift. He had a natural grasp of the world around him.

Rex achieved a great deal over the following 30 years, working for a number of large international and national mining companies like Barrick Gold, Dominion Mining and Plutonic Resources.

His accomplishments stood out, but Fosterville always remained dear to his heart. He moved to the Fosterville area 18 years ago.

So, when Rex first heard in 2015 about the discovery of the Eagle Zone he turned his attention homeward.

And got to work.

Today, the deep, intimate local knowledge that Rex picked up about Fosterville during his formative years is about to pay off in the most spectacular fashion.

For Rex is the inspiration behind Fosterville South Exploration (TSX-V:FSX) and what promises to be this year’s hottest gold exploration play.

The compelling pitch drove some of the world’s most successful mining investors into Fosterville South (TSX-V:FSX).

Scanning through the initial FSX news release and the company’s publicly disclosed information, you will see that both Eric Sprott and Ross Beaty are shareholders, joining several other institutional mining investors.

This is a huge endorsement for the company, but what is it that attracted them?

A big part of the answer is what happened just up the road at Fosterville.

Five years ago, Rex immediately recognized the significance of Kirkland Lake’s initial discovery of high-grade gold in the Eagle Zone.

While FSX’s projects have similar geological characteristics to Fosterville itself, there have been a lot of other deposits found in the area, with the Bendigo goldfield having reported historic production of 22 million ounces of gold. This same corridor is associated with the Whitelaw Fault, which is also part of FSX’s tenement portfolio.

Rex knew all about these discoveries, having dedicated so much of his youth to learning about them. After all, they were on his doorstep and the science of mining was always his passion.

Over the following 18 months, Kirkland Lake released increasingly impressive gold exploration results, and by summer 2017 it had more than doubled Fosterville’s underground reserves and increased the reserve grade by 83% to 17.9g/t gold (“Au”).

This was a stunning outcome, transforming Fosterville into a world-famous mine.

However, while the public’s attention was fixated on Kirkland Lake’s meteoric rise into a C$14 billion stock, Rex was quietly but aggressively building his land position.

Thanks to his extensive insight into the Fosterville region, its geology, and, most importantly, its landowners, Rex spotted the development of an incredible opening.

***By applying modern drilling techniques to historically-mined areas of the Selwyn Block (the geological formation that dominates the central region), Rex was convinced that significant undiscovered mineralization of gold could be just waiting to be found.***

While Kirkland Lake focussed its energies on proving its vast new resources at Fosterville, Rex had a sharp eye to the future.

One question dominated his mind.

What if Kirkland Lake’s spectacular success could be repeated elsewhere in the region?

His region. His own backyard.

Rex seized his moment, took massive action, and today we have this opportunity.

Fosterville South (TSX-V:FSX) – Three exploration projects in the world’s best neigbourhood for high grade gold

By early 2018, Rex had secured approximately 423km2 of potentially the most prospective land for gold exploration anywhere on the planet. Further applications promptly ensued.

Spread across three projects consisting of two granted licenses (Lauriston, and Golden Mountain) and two large license applications (Providence), this was the culmination of a lifetime’s dedication and hard work.

And guess what.

Perhaps the best of Rex’s licenses, the 600km2 Lauriston project, lies immediately south of and is contiguous with Kirkland Lake’s Fosterville tenements.

In fact, it borders Fosterville and features the same rock formations as that world-class mine.

It even boasts the large Taradale-Lauriston gold field that has, according to historical records, produced 233,215 ounces of gold at an exceptional average grade of 20.7g/t.

Given what Kirkland Lake proved at the Eagle Zone, this is an incredibly exciting indicator.

The historical production at Lauriston is concentrated within in a 10km wide corridor that closely associated with the regionally important Whitelaw and Tandara/Taradale faults.

Tantalizingly, they sit right on the boundary of Fosterville’s exploration licence.

Make no mistake.

These are outstanding drill targets that have NEVER been explored using modern drilling techniques.

It is no wonder Rex and the team named the company Fosterville South Exploration (TSX-V:FSX).

It is a confident statement of intent.

FSX now plans to spend C$2 million at Lauriston over the rest of the year in one of the potentially highest impact drill campaigns around.

Given the historic presence of such high grades of gold, if FSX can repeat even a little of Kirkland Lake’s success at Fosterville, the company will add significant shareholder value.

Meanwhile, the other half of FSX’s exploration program for 2020 will be at Golden Mountain, over to the east of Lauriston.

Golden Mountain on its own would comfortably act as a flagship project for other companies in the junior gold exploration sector.

But FSX is not any other company.

It speaks volumes to the potential at Lauriston that Golden Mountain is FSX’s second priority.

Even so, the firm will spend C$1.9 million this year on an exceedingly attractive target. Golden Mountain has had a chequered history of various types of drilling, but is in need of a more detailed  modern and systematic drill program. Past drill grades, as described in the FSX’s 43-101 documentation online at SEDAR are excellent, but Rex and his geological team think this is just scratching the surface.

Golden Mountain has the right types of rocks, the right structural controls and is just waiting for a modern look at the mineralization that has been shown to exist.

However, when you learn that these targets contain similar metallic signatures and geology to Fosterville AND nearly all have NEVER been tested using modern drilling methods, the potential quickly becomes electrifying.

FSX’s third and final project, Providence, covers 650km2 and is going through permitting. The company expects to complete this over the coming months, at which point it will be able to finalise its work plans.

Situated between Lauriston and Golden Mountain, Providence also contains recognized historic gold fields that have yielded high-grade production, bear the same geological hallmarks as Fosterville and, once again, have not been drilled using contemporary techniques.

Rex’s theme should now be obvious.

This is why he has received such heavyweight backing.

With the gold price surging, C$6.1 million in the bank, no debt and a fully funded, high-impact drill campaign ready to go, it is no wonder that Fosterville South Exploration’s (TSX-V:FSX) stock has been such demand.

Following the five times oversubscribed fundraise before the IPO, demand for FSX’s shares is likely going to be extremely strong.

With so much of the stock in the hands of strong holders, it is likely going to be hard to buy in volume.

However, if you are lucky enough to build a position, you are assured an exciting ride over 2020.

Good luck getting hold of this stock over the coming days.

Why invest in Fosterville South?

  • C$20 million market cap, with $6 million cash & a fully funded high-impact drill program

  • Three projects, covering 1,300km2 of the most prospective land for gold exploration land on

  • All three projects have hosted historic, high-grade gold production

  • All three gold projects have NEVER been explored using modern drilling methods

  • Flagship Lauriston license directly boarders Kirkland Lake’s high-grade Fosterville Gold Mine

  • Well known and extremely successful mining investors as backers, alongside a proven management team with a history of wealth creation in the sector



This communication is a paid advertisement. ValueTheMarkets, Digitonic Ltd, and their owners, managers, employees, 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 Fosterville South Exploration Ltd. to conduct investor awareness advertising and marketing. Fosterville South Exploration Ltd. paid the Publisher the equivalent of one hundred thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased. 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 hurt share prices. Frequently companies profiled in our articles experience a large increase in 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 volume and share price may likely occur. 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. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. 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. 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 cannot guarantee the accuracy or completeness of the information.


This publication contains forward- looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, the success of the company’s operations, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.


By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.


By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here If you do not agree to the Terms of Use, please contact to discontinue receiving future communications.

INTELLECTUAL PROPERTY. is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and 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.


In this article:

Author: Patricia Miller

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.

Sign up for Investing Intel Newsletter