I’m a big fan of orogenic gold systems, a key example of why is the Swan Zone at the Fosterville mine in Australia. When Kirkland Lake mined it, they became one of the lowest cost producers of gold in the sector, their stock was one of the best performers of gold miners, and it led them to being taken over. These kinds of discoveries are serious company makers.

The key thing I look for when watching a company explore orogenic gold systems is when they start getting high-grades to bonanza grades. These systems are found in very old rocks, with associated crustal faults that go very deep. The faults are the cracks in the earth that allow the metals bearing fluids to make their way toward the surface.

In the image above, you can see two important faults that are likely associated to the gold mineralization at the Thundercloud project. At the northern part of their claim is a regional fault, and going through the center of the claim is another fault that is displaced. Where it is displaced are where several rock packages are located.

At the Swan Zone they had to get down to the 750m to 1000m to find it. At the Red Lake mine they went down to 1000m to hit the jewellery box bonanza gold and it continued for another 1000m. Both Fosterville and Red Lake were mined above those zones, but the game changers were when they got deeper. As you go deeper into these system it is closer to the heat engine of the gold system.

So when I see a company exploring an orogenic gold project, in this case Dynasty Gold (DYG.V), tag the high-grade to bonanza grade gold much closer to surface it immediately catches my attention.

This project had seen a significant amount of shallow drilling, but then they drilled a little deeper and hit high-grade to bonanza grade and have reached an important juncture in the exploration of an orogenic gold system.

On hole DP22-02 they hit 43g/t gold, over 3 metres at 180m deep. Hole DP22-03 hit a spectacular 3m intersection grading 101g/t gold with a subinterval of 1.5m of 246g/t gold at a depth of 118m. Hole DP22-04 hit 25g/t over 1.5m at 145m deep. They look to already be into a jewellery box zone, very close to surface and the depth is wide open.

To visualize where they drilled, you can think of a 3 armed clock, hole DP22-04 is at around 7 o’clock, DP22-02 is at 6 o’clock and DP 22-03 is at around 5 o’clock. With these three holes they already have an impressive zone developing.

Below is an image provided by the company showing hole DP22-03 bonanza grade intersection. Their geologist commented that it contains a lot of sulphides, including disseminated pyrite, alteration, quartz and silicification.

Now that they have discovered a high-grade to bonanza grade zone, the next key step is to expand on it, especially at depth. They are at an impressive juncture in the exploration of an orogenic gold system and even better they can keep following the system that starts less than 200m below surface.

As you can see in their stock chart they were a patchy trader prior to the news, then it blasted off on the news with very high volume. This kind of trading brought in a significant amount of hot money. Since the spike on the day of the news, the hot money and some that were in at cheaper prices have probably left the building.

In the past couple days the stock went through a Golden Cross. Now that profit takers and hot money is out, a new batch of shareholders that see the realistic potential of what they have found can position themselves to have a swing for the fences opportunity.

Their valuation at the time of writing this is at CAD $10 million which is a very modest valuation considering the merits of the project and the news flow they have ahead.

In Closing

Dynasty Gold is a sponsor of my reports, I have done an interview with their executives on my Youtube Channel.

As always my reports are for research only, before making any investment decisions you should speak with your financial advisors and do your homework. A good place to start your homework on the companies I follow is on my Youtube Channel. Then check out the websites of the companies I report on where you should look at their news releases and corporate presentations.

All the best,

Allan Barry Laboucan

Founder

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