Austin Gold Corp.’s Rise as a Prime Gold Proxy (NYSE American: AUST)

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Austin Gold Corp. (NYSE American: AUST) (“Austin” or the “Company”). Austin is a gold exploration company focused on gold targets and making district-scale gold discoveries in the southwestern United States. If you have gold in your corporate name, investors tend to assign it to the favourable or even ‘win’ column. 

Austin is a prime example of being a decent mirror/proxy to the rise in the gold price, with the punditry (Yes, it’s a word) espousing further gains. Not a flashy junior, the Company has substantial projects and growth that followed, but it bvastly outstripped the returns of the physical.

So, as a proxy, Austin stands out. 52-week range is USD0.54 to USD1.66. The average daily share trade is about 90k.

Austin is a gold exploration company focused on gold targets and making district-scale gold discoveries in the southwestern United States.

Austin has three projects in Oregon and Nevada

  • The Kelly Creek Project is located on the Battle Mountain-Eureka (Cortez) gold trend in Humboldt County and 
  • The Lone Mountain Project is on the Independence-Jerritt Canyon gold trend in Elko County. 
  • These properties comprise approximately 78.9 km2 of unpatented lode mining claims and private property. 
  • In Oregon, the Stockade Mountain Project consists of approximately 21.5 km2 of unpatented mining claims situated in a geological environment that appears the same as the nearby Grassy Mountain Deposit that is being permitted for underground mining.

Grade?

The third hole at Stockade Mountain in Oregon returned a high gold value of 9.32 g/t from a 2.7-foot (0.82-meter) interval of chalcedonic vein and breccia. Hydrothermal alteration and mineralization in the hole are exceptionally strong, and the rock is completely oxidized to the bottom of the hole. 

Although the gold intervals are not interpreted to be one of the targeted high-grade “feeder” veins to the high-level stockwork gold mineralization, geological indications are that they are at greater depth and in this general area. AUST is planning an RC drill program to continue the exploration of the hypothesized high-grade vein systems.

Significant gold values in SM-24-04 are reported in the table below. Additionally, long intervals of >0.100 g/t gold were encountered.

Hole IDFromToIntervalFromToIntervalGold
(ft)(ft)(ft)(m)(m)(m)g/t
SM-24-04
242245373.874.70.910.515
607609.72.7185185.8.829.32
609.76122.3185.8186.5.701.04
6546562199.32000.610.363
674.86783.2205.7206.70.980.378
712.4713.91.5217.1217.60.461.22
        

Stockade Mountain Project consists of 261 unpatented lode mining claims covering an area of 6,790 acres. It is located in Malheur County, Oregon, approximately 85 kilometres southeast of Burns, Oregon, and 150 kilometres southwest of Boise, Idaho.

Here’s the Company Presentation.

And it is not often that management tells you WHY you should own the Company, or if so, it is usually fluff or bullshit.

Not Austin.

  • People: The Austin Gold team has been instrumental in building several past mining successes, including Pretium Resources (“PVG”), Silver Standard Resources (now SSR Mining (“SSRM”)), and Uranerz Energy (acquired by Energy Fuels (“EU”)). Each of those mining companies achieved billion-dollar-plus market capitalizations.
  • Location: Nevada and the Great Basin are world leaders in gold production
  • Projects: Three projects being advanced with several targets on each project means multiple opportunities for discovery
  • Share Structure: Tight capital structure with significant insider ownership

Lots more to this Company. For descriptions of all three properties, check out the stats here.As good a year as physical gold has had, it didn’t have a triple trading range.

That growth is a testament to some simple tenets: management, properties and measured risk-takers.

So far, so good. 

Bob Beaty
+ posts

For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.

Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)

Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;

‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.

Let’s go.

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