Sunday, July 14, 2024

Element79 gold climbs to new highs after offtake deal with 4 billion dollar gold producer (CSE: ELEM) (OTC: ELMGF) (FSE:7YS)


Element 79 Gold Corp. (CSE: ELEM) (OTC: ELMGF) (FSE:7YS) (“Element 79 Gold”, the “Company”) is a mining company focused on gold, silver and associated metals in Nevada and Peru.

On Friday, Feb 2,2024, the shares of Elemental 79 shot up over 50% to CDN0.35, on volume of around 90k.On January 29, the shares were CDN0.18 cents. So, they have doubled in less than a week. The only reason they stopped was that the market closed. Maybe.

Buyers were willing to bid up the shares to a record gain. (Meta had the biggest move in stock market history—at least in the US).

As I have often said, ELEM is not in the traditional mining business; it is in the business of mining. Creating deals that provide capital: The latest agreement completed Friday Compañía de Minas Buenaventura is impressive, even by ELEM’s history.

The Deal? The ELEM/BVN LOI paves the way for the sale of ore from the Lucero property. This deal marks a pivotal moment in the Company’s journey and aligns directly with its cash-flow generation strategy for 2024.

Compañía de Minas Buenaventura (BVN) is a Peruvian precious metals-producing company with experience in mine exploration, development, construction, and operation. It has developed a business culture that focuses on caring for the environment, the health and safety of all our collaborators, and respect for communities. BVN was the first Latin American mining company to list on the New York Stock Exchange in 1996.

CEO of Element 79 Gold, James C. Tworek, stated, “This LOI represents a pivotal moment for ELEM – Proof of Concept that this past-producing mine has valuable economic potential today – by aligning with a potential regional commercial partner, and spurring the path to restarting commercial production in the near term. Our team has a series of project milestones to achieve along the way to realizing this potential offtake, including completing a Definitive Agreement with BVN. We are confident our efforts will enrich our understanding of Lucero’s property and help unlock more of the inherent value of ELEM’s crown jewel.”

Bottom Line

Corporate Presentation

Should investors buy ELEM? If so, I suggest employing a dollar cost-averaging strategy if ownership is on your mind. ELEM is a junior gold company acting like a senior. And if there were large sellers, they all got sucked up by buyers.

FROM ELEM Website (I found it, so you don’t have to, but the site is very informational)

  • The past-producing Lucero Mine (“Lucero”), one of the highest-grade underground mines in Peru’s history at grades averaging 19.0g/t Au Equivalent (“Au Eq”) (14.0 g/t gold and 373 g/t silver).
  • In its past five years of production, ending in 2005, it produced an average of 40,000oz+/yr.
  • Assays from March 2023 yielded from underground workings 21-ore-grade and high-yield up to 11.7 ounces per ton of gold and 247 ounces per ton of silver, further validating the potential for a significant high-grade future operation.
  • Consolidating its focus in this region and its impressive geology, ELEM acquired the Roxana Vein and surrounding 1200ha property, Lucero del Sur 28, via auction held on May 17, 2023, located strategically just east of the high-grade Lucero gold-silver project.

I have quoted him before, the late but brilliant George Peppard as Hannibal, the leader of the A-Team, stated “I love it when a plan comes together.”

Don’t we all. (I own a small number of shares, btw)

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, 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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