Blue Star Gold Corp. is a Vancouver-based mineral exploration and development company that explores for gold in Nunavut, Canada. The Company has acquired 100% interests in the Ulu Gold, Hood River, and Roma projects in Nunavut, covering 267 km2 (26,674 ha; over 65,912 acres) in the High Lake Greenstone Belt ("HLGB"). The Ulu Gold and Hood River properties are adjacent to each other, and the Roma project is located 48 km due north of the Ulu Gold Project. The Ulu Gold Project contains an NI 43-101 resource (M&I and Inferred) of 831,000 gold (Au) ounces (oz.). (1) INVESTMENT THESIS AND UPCOMING CATALYSTS: (i) District-scale Exploration Opportunity: The Company is the largest title holder on the HLGB with over 26,674 hectares (ha) in highly prospective and underexplored areas. (ii) Existing Resource to Build Upon: The Ulu Gold Project contains an NI 43-101 resource of 831,000 Au oz. and the existing resource is still open along strike and depth. (iii) Building on the 2021 Exploration Program: Promising results warrant further exploration; key results included 20.8 g/t Au over 8.15 metres (m), 52.7 g/t Au over 2.0m, 19.1 g/t Au over 4.91m, 6.9 g/t Au over 7.00m, and 13.0 g/t Au over 2.64m. (iv) Regional Exploration: Besides the existing resource, the projects have several drill-ready targets and other peripheral gold showings or zones that can be further explored. (v) Strong Management Team: Management has extensive experience and geological knowledge of the region. (vi) Cash in the Bank: As of February 28, 2022, Blue Star had $1.66 million in cash on its Balance Sheet. (2) FINANCIAL ANALYSIS & VALUATION: (A) We are basing our one-year target price on a multiple of 65x EV/oz. and we are using an adjusted resource. (B) Our adjusted resource for the valuation is based on the following formula: 75% of the Measured & Indicated ("M&I") and 50% of the Inferred resource. The adjusted resource for valuation is 566,750 Au oz. (C) We also assume there will be additional financings over the next year and the share count in one year will be 54.5 million shares. (D) We are Initiating Coverage with a Speculative Buy rating and one-year price target of $0.90.
18 May 2022
A Golden & Growing Resource in Canada’s North
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
A Golden & Growing Resource in Canada’s North
Blue Star Gold Corp. (BAU:TSX), 0 | Blue Star Gold Corp. (BAUFF:OTC), 0 | Blue Star Gold Corp. (5WP0:FRA), 0
- Published:
18 May 2022 -
Author:
Chris Thompson -
Pages:
52
Blue Star Gold Corp. is a Vancouver-based mineral exploration and development company that explores for gold in Nunavut, Canada. The Company has acquired 100% interests in the Ulu Gold, Hood River, and Roma projects in Nunavut, covering 267 km2 (26,674 ha; over 65,912 acres) in the High Lake Greenstone Belt ("HLGB"). The Ulu Gold and Hood River properties are adjacent to each other, and the Roma project is located 48 km due north of the Ulu Gold Project. The Ulu Gold Project contains an NI 43-101 resource (M&I and Inferred) of 831,000 gold (Au) ounces (oz.). (1) INVESTMENT THESIS AND UPCOMING CATALYSTS: (i) District-scale Exploration Opportunity: The Company is the largest title holder on the HLGB with over 26,674 hectares (ha) in highly prospective and underexplored areas. (ii) Existing Resource to Build Upon: The Ulu Gold Project contains an NI 43-101 resource of 831,000 Au oz. and the existing resource is still open along strike and depth. (iii) Building on the 2021 Exploration Program: Promising results warrant further exploration; key results included 20.8 g/t Au over 8.15 metres (m), 52.7 g/t Au over 2.0m, 19.1 g/t Au over 4.91m, 6.9 g/t Au over 7.00m, and 13.0 g/t Au over 2.64m. (iv) Regional Exploration: Besides the existing resource, the projects have several drill-ready targets and other peripheral gold showings or zones that can be further explored. (v) Strong Management Team: Management has extensive experience and geological knowledge of the region. (vi) Cash in the Bank: As of February 28, 2022, Blue Star had $1.66 million in cash on its Balance Sheet. (2) FINANCIAL ANALYSIS & VALUATION: (A) We are basing our one-year target price on a multiple of 65x EV/oz. and we are using an adjusted resource. (B) Our adjusted resource for the valuation is based on the following formula: 75% of the Measured & Indicated ("M&I") and 50% of the Inferred resource. The adjusted resource for valuation is 566,750 Au oz. (C) We also assume there will be additional financings over the next year and the share count in one year will be 54.5 million shares. (D) We are Initiating Coverage with a Speculative Buy rating and one-year price target of $0.90.