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High Quality Canadian Gold & Silver Projects; Promising Drill Results
|Dave Jackson, Stockhouse|
Investors eyeing opportunities in the hot gold and silver market may have a lot of options, but few check as many boxes as Affinity Metals Corp. (TSX-V.AFF, OTC: ARIZF, Forum) when it comes to quality projects, solid results, and stable share structure.
Focused on the acquisition, exploration, and development of strategic metal deposits within North America, Affinity Metals is following a hybrid approach of combining the advancement of strategic assets along with following a project generator model.
The Company holds two properties in British Columbia, five located near Timmins Ontario, and a recent acquisition of a property adjacent to Osisko’s Windfall project in Quebec.
In Revelstoke BC, Affinity is working at the Regal Gold project in the northern end of the prolific Kootenay Arch and hosts several major geophysical anomalies as well as three historic small-scale past producing mines. It was here where Affinity struck new ground and began the first known drill program in the Allco area of the property last year.
Across the country, in the Abitibi Greenstone Belt, Affinity Metals has acquired two highly prospective properties – the Carscallen Extension and the Windfall North. The Carscallen Extension property consists of 47 claims, spanning 940 hectares on trend with the Melkior-Kirkland Lake Carscallen Project. It adjoins approximately 1 kilometer to the northwest of the 800m NW-SE gold system that is currently being defined and that is open in both directions. The Windfall North Property consists of 97 mineral tenures that spans 5143 hectares and straddles the very prospective main lithological contact and structural trend along strike to the northeast from Osisko’s rapidly growing Windfall Lake deposit.
Stockhouse Editorial caught up with Affinity Metals’ Chief Executive Officer and Director, Robert Edwards.
SH: Thank you for taking the time to speak with us and tell us your story. To begin with, can you bring us up to speed on your hybrid approach and how it benefits your business?
RE: While the prospect generator model is not necessarily a new approach in the industry, we have built a fairly unique business model. This comes from years of experience managing publicly traded companies in the exploration industry. Our leadership team understands the upside of not heavily diluting stock to raise capital for expansive projects that don’t lead to shareholder value. So, we use a hybrid of traditional prospecting methods and a cost effective “prospect generator” model. We utilize modern acoustic surveys in symphony with the traditional “boots on the ground” prospecting, geological mapping and geophysics which increases our ability to determine environments where valuable deposits could be. This gives us an edge on discovering possible deposits that others may have overlooked or may not be able to see. Using this business model allows us to manage our risks and allocate capital responsibly while at the same time, recognizing and capitalizing on new discovery opportunities.
SH: In August, the Company began the 2020 field exploration program at its flagship Regal Project. Prior geophysics, including Z-TEM and SG3 Acoustic EM surveys, along with further prospecting and geological mapping, highlighted several large anomalies on the property. Can you shed some light on the program and what we can expect?
RE: Our 2020 drill program will follow up on the Allco area high grade silver discovery made last year as well as some initial testing of one or more geophysical anomalies. This is a very large property, and we have lots of work to do on it to determine it’s true value. We have up to 3000m of diamond drilling planned with the possibility of expansion depending on the ongoing prospecting and sampling program now being conducted.
SH: Can you tell us about the high-grade silver discovery you made with the 2019 Allco area drilling?
RE: We are extremely encouraged to see such positive assay results from the 2019 drilling, our first drill program on the property and in an area that has never been drilled. Our expectations were that the assays would show strong mineralization given what we have seen from our prior surface sampling program and the historical production grades, but to find this new 11 meter silver zone is truly exciting! Drilling found a significant new silver zone with drill hole #10 intersecting 11.10 meters of 143.29 g/t silver including 0.55 meters of 2,612.0 g/t silver. This intersection also carried high grade zinc and lead with some copper. Obviously, this is now an area of focus for the 2020 Regal Project drill program as we follow up on this new discovery.
SH: Gold and silver prices are moving higher and higher, and records continue to be broken this year. What kind of comment can you provide on this positive market trend?
RE: A precious metals bull market is something our management team has been predicting for some time. We did not see the situation manifesting the way it did, but the Covid 19 virus and the economic and social turmoil associated with it appears to have been the perfect catalyst for what is now playing out, and what will likely continue to move the metals and precious metal stocks much higher. One thing to note with respect to precious metals related investment opportunities, is that unlike fiat currencies, gold and other metals can’t simply be printed or created out of thin air. Further, hard commodities can only be discovered, produced and sold once. So as fiat money continues to be “created” by the trillions and the producers look to replace rapidly depleting reserves, the value of successful junior explorers will likely continue to increase exponentially as gold and silver prices rise. We expect the economic decisions being implemented today in our current world environment are setting the stage for a further significant up trend in gold and silver prices. We are very excited to have positioned our company and its shareholders to take full advantage of this wealth-building opportunity.
SH: You have a deep background in the industry dating back over many years and your management team is also highly experienced. What are some career highlights you would like to share about the team?
RE: While Affinity could be considered a rather new company as it was recently restructured, our management team has been around the block. Being in the industry for that long it might be more prudent to highlight some of the “low lights” as until recently, the gold and silver space has endured a brutal, decade-long bear market which our team learned how to navigate through. It is probably the resilience and fortitude that our group showed through the tough times that we are most proud of. While each person on our team carries a resume of achievements, it is the collective achievement of understanding how to manage through the down markets that will ultimately allow us to prosper in the more bullish times ahead.
SH: The Company recently closed over-subscribed private placements for gross proceeds of more than $2,000,000. What are these funds earmarked for?
RE: We closed 3 successful private placements earlier this summer, so we are very well funded. Our business plan is twofold. We will be advancing our current projects, the Carscallen Extension, Windfall North and our flagship Regal property, while also continuing to evaluate and acquire new high quality assets. We have an edge in this when you look at the history and track record of our management team, paired with the technology we have at our disposal.
SH: With such a tight share structure, what advantages would this pose for investors…old and new?
RE: Our share structure allows for current and potential investors to join our insiders and close associates, who own approximately 75% of the outstanding shares, in capitalizing on a top management team in a promising market opportunity. We only have 43 million shares outstanding and are well funded. Investors can find some insurance in the company’s commitment to its shareholders with a structure like ours, while also getting the upside that comes with a junior minor.
SH: You recently made two big acquisitions. Looking six months to a year down the road, what can people expect from Affinity Metals as you advance your projects?
RE: You can look for us to be strategically aggressive! We will continue to acquire high quality targets and while advancing our current properties. Drilling is ongoing at the Regal project. We are excited to have recently acquired two high potential gold properties, one very near and on trend with Osisko’s Windfall project in Quebec and another on trend with Melkior-Kirkland Lake’s Carscallen project in Ontario. Plans for these properties will be released shortly as we are looking to expedite the exploration of these high value assets.
SH: Thank you again for telling us about your Company, Robert. Anything further to add?
RE: Thank you for having us. We are very excited about what the future has in store for our company and its investors. The company is set up to excel in the future market and serves as a compelling investment opportunity for both the seasoned investor, and newcomers to the industry.
Find out more about the Company at affinitymetals.ca.