Borealis Mining Has Impeccable Timing To Come To Trade While Gold Is In A Powerful Bull Market
During my 30 years of working in the mining business, I have never seen a newly listed company start trading as well set up for success as Borealis Mining.
Whether a company is a pick or a sponsor at Rocks And Stocks News, it always starts with the project. Borealis Mining has a remarkable gold project in Nevada that can follow a dual track for growth through exploration and mining.
Another important factor is the people involved, they have two key leaders, one is a very talented geologist, the other is an equally talented mine builder and operator. Kelly Malcolm, is the geologist and CEO, has had great success as an exploration geologist at the Detour Lake Mine. Then as a VP Exploration on a project in Quebec, where he helped find millions of ounces of gold.
Their COO, Andreas Steckenborn, cut his teeth as a mine builder and operator at the Detour Lake Mine, then went on to work at the Cote Lake Mine. The Detour Lake Mine is where Kelly and Andreas first worked together, it was a great learning ground as it is one of Canada’s biggest gold mines.
A few weeks ago, I did an interview with Kelly and Andreas, in it we discussed a key milestone they had achieved to start the process of turning the Borealis Mine back on. We had a great discussion about their operation including existing facilities and material ready to extract gold.
I would like to invite you to watch that video as it will help you do your homework on the company and its gold mine. Some of the highlights for me is everything is built and in place for gold production, and that they have turned everything on to produce gold. They have a built ADR plant ready to roll, and a stacked leach pad ready for leaching that is on a secure flat piece of ground.
While bringing the mine back into operation prior to going public, they also have done drilling. Those are the two key reasons I am so excited about the company’s prospects for growth.
Initially, what caught my attention for the Borealis Mine was the exploration potential. One of the famous sayings in gold exploration is that big projects leave big footprints. When Kelly went over the company’s presentation with me, I immediately noticed an extremely large alteration zone that is 20 square miles.
Then he provided me with papers that were written about the project. They documented that the alteration zone is one of the largest in Nevada. I then dug deeper and saw that one of the highest grade holes on the property was below the oxide pit that was the biggest and highest grade of those mined.
I was taken aback when I read the comparisons to the best gold mine in South America, the Yanacocha Mine. When I read this, I got on Google Earth to have a look at Yanacocha. What I saw was a very large alteration zone and a series of open pits. The open pits at Yanacocha are mined out and next they are looking at transitioning from open pit mining of the oxide deposits to mining underground for the gold in the sulphides below the oxides.
With Yanacocha on my mind, it emphasized the importance of the huge zone of alteration at the Borealis Mine. Plus, I looked closely at the open pits that were historically mined at the Borealis Mine. There are a series of open pits that line up on the edge of the alteration zone covering maybe 10 percent of the zone.
Additionally, I noticed that the biggest and highest grade pit was actually in the covered area beside the alteration zone. This was an eye-opener because it opens up the potential to find more oxide deposits right beside the alteration zone in the covered area. It only has thin cover so there is easy access to oxide hosted gold.
Then I looked beyond a series of pits to the huge alteration zone along a ridge that extends right down to the covered area. The biggest pit is out in the covered area, so not only is the daylighting alteration zone highly prospective, the covered area immediately beside it is as well.
Another thing is clearly seen in the series of pits, they follow along a structure that cuts through the alteration zone and out into the covered area. There are several other cross cutting structures that run parallel and also cut through the alteration zone and beyond to the covered area.
Readers of my reports and viewers of my interviews know I like to call the drill rig the Truth Machine. There are actually two Truth Machines in the mining business. The drill rig is the small Truth Machine and the big Truth Machine is the mine. Rarely do you see a junior that can employ both of them simultaneously like Borealis Mining.
After the project, then the people are crucial. In Kelly Malcolm and Andreas Steckenberg they have two great leaders for the exploration and mining operations. Due to the quality of the project, they attracted a who’s who of mining.
Their Chairman is Tony Makuch, he built Kirkland Lake Gold from a junior into a huge success that was taken over for several billion dollars. They also have other marque mining people on the board as well.
The last year and a half or so have been challenging for juniors to raise money. Another testament to the quality of their project is that during a challenging period, they were able to raise around C$15 million as a private company.
They also have a couple of mining legends as key investors. Eric Sprott, who made a vast amount of his wealth from Kirkland Lake is an early investor.
When they acquired the Borealis Mine, it was from Waterton, who is winding down their resource fund. They made a deal with Waterton that upon going public, Waterton would have become the largest shareholder during the going public process. As they are winding down their fund, they likely would have sold their position.
In an interesting turn of events, Borealis Mining was presented to Rob McEwen. He decided shortly after hearing the Borealis Mining story he wanted to own Waterton’s position. This was arranged, and he bought Waterton’s entire position and is now the largest shareholder of Borealis Mining. Rob McEwen is a wealthy long-term mining investor, so it is a stroke of good fortune to have him as a cornerstone investor.
So as is clear, they checked off three of the four key boxes I look at when assessing a junior mining company. They have a great project, strong team in leadership and on the board, and two of the most successful investors in mining.
After that, another key thing I look for is management's commitment to telling their story, especially using social media tools such as YouTube. I have done interviews and talked with Kelly at length about this and he wants to make the company an example for how juniors should be actively promoting their story.
This is crucial to me because investors are pulled in many directions. To keep a junior on the top of their minds requires a commitment to getting the story out in front of them consistently, Kelly is of a like mind to me on this topic.
Borealis Mining (BoGo.V) has all the key check marks I look for in a junior which is why I feel they are the most well prepared company I’ve ever seen to become a success as a public company.
In the middle of next week, they will be a newly minted publicly trading junior miner. Which can use the two Truth Machines of mining, the little Truth machine of the drill rig, and the big Truth Machine of a mine. They are putting this all together with ideal timing, as gold is in a powerful bull market.
All the best,
Allan Barry Laboucan
Disclosure
Borealis Mining is a sponsor of Rocks And Stocks News, content creation about them is for the benefit of the company. Sponsors also benefit readers of the reports as it makes content creation possible for no charge to readers. Allan Barry Laboucan is a shareholder of Borealis Mining and a consultant to the company.
Rocks And Stocks News does not make buying or selling recommendations. The reports are for information purposes only. Sponsors pay a fee to Rocks And Stocks News for content creation. The business model of Rocks And Stocks News is to fund research and reporting on the sector, picks and sponsors through corporate sponsorship. We are thankful to sponsors for enabling commentary free of charge to readers and viewers of the reports. When reporting on sponsors it is on behalf of the sponsors discussed in the portion of the report mentioning the sponsor. Before making any investment decision it is important for you to speak with your financial advisors to consider your risk profile. It is also important to do your homework. To help in that process, Rocks And Stocks News means to be a gateway by doing reports and interviews of management of sponsors and picks. The reports and interviews should not be considered investment advice. Allan Barry Laboucan is the founder and owner of Rocks And Stocks News, he has worked in the mining sector since 1993 and has been reporting on the sector since 2005. He has worked with and been mentored by very talented geoscientists in geology, geochemistry and geophysics. He uses the skills he has picked up during his career to assess sponsors and picks in the reports. Whether a company is a pick or a sponsor they go through the same filter and are reported on when important news is made that Allan Barry Laboucan wants to discuss on the Rocks And Stocks News platform. He may own shares in sponsors and picks for investment purposes which he discloses when discussing them in the reports.
