Stock Talk – Lion One Metals, New Found Gold, Aftermath Silver, AbraSilver Resource

Stock Talk – Lion One Metals, New Found Gold, Aftermath Silver, AbraSilver Resource

hey everyone another stock talk episode
here on the K report I’m your host Corey
Fleck and I am joined Again by Quinton
Henny geologist private investor and
geologic advisor to crescat Capital now
this is a continuation of this new
series that I have with Quinton where
all of you are sending me stocks that
you want quinton’s comments on mostly on
an exploration front but judging by all
the emails I have gotten we’re going to
be covering a wide range companies as we
progress through stock talk with a
segment this week we’re even going to
follow up with another segment next week
and probably keep that routine going on
at least uh once every two week segment
where we dive into resource stocks that
you are interested in four stocks being
featured this week starting with Lion
one medals new found gold aftermath
silver and Abra silver Quinton let’s get
into stock talk then starting with Lion
one medals traded on the TSX Venture
exchange under the symbol l IO and on
the otcqx under the symbol l m LF look I
get a lot of questions about lion one
cuz I’ve covered them a lot on the show
and a lot of people are wondering about
the mine ramp up because you’re more on
the exploration side here I do want to
talk about the exploration focus of the
company one being around the reason
resource at to V 2 can that be extended
let’s start there what do you think
about exploration potential around the
known resource well look at at tuat it’s
clear there’s a lot more drilling that’s
going to need to be done over the next
few years there’s uh some very good
targets albeit some of these things are
early stage you know if you look at uh
some of the drill success that was uh
happened late last year 2023 um there’s
a lot of new zones that need to be
followed up um you know including this
new poery discovery uh the TU vatu
mineralization you know that that’s part
that’s exposed inside the mine is of one
type okay we’ll call it uh more or less
gold only mineralization it’s uh it’s
the main focus of the current
experimental mind that they have in
place and so forth but then there’s this
poery aspect too which is seems to be
more like a center of gravity somewhere
north of the Tatu resource and what that
might look like is going to be
interesting like there’s there’s
definitely a copper gold flavor uh in in
that mineralization gold still there but
there is definitely very high- grade
copper in places so you know it could
unfold in a very interesting way um we
see similar systems to this elsewhere in
the world like say K92 has a significant
copper component and they are an
alkaline gold system like Tu vatu so how
would you like to see the company test
this new copper area because this was
just released to the market at the
beginning of March first and foremost
you know the the Market’s been tough
okay and you know it’s not been easy to
to secure Capital especially when you’re
trying to ramp up a mine like this the
company did raise money not too long ago
I think about three or four weeks ago
and the goal of that is to get ramped up
okay they’ve been working on the
experimental mind level for about six or
seven months now I think they actually
poured their first gold if I remember
right sometime back in October of last
year and that was at you know a tonage
of about 300 tons a day and a lot of
that you know mining was actually a
developmental you know drifting and
stuff like this I think now they’re into
the more the the stoping you know proper
production sto stopes and whatnot but
they also want to get it ramped up to uh
500 tons per day and that includes you
know putting a ramp down to the the 500
Zone the high-grade portion of the
system at a little bit deeper level all
right so I’d like to see the company
Focus like a laser on getting that
working everything needs to get working
so they get cash flow positive and so
forth you know or get get a mind that
will say is self- sustaining all right
because if they do that then that’s when
you you go and test the rest of this you
actually you know have a lot of
opportunity then to use cash flow to uh
Test new targets including this pyy and
see if you can’t find you know the the
future of the of the mine itself but
also maybe new discoveries oh I’m
following up with the company too just
so everyone knows to try to get an
update on that mine ramp up but that I
know just takes some time to get that
organized but then Quinton let’s let’s
take this a step further say say that
mine is up and running and they are
generating cash flow from it and then
they go and test this copper poery
Target what kind of a story does it
change into if they do start to find
something copper wise in terms of maybe
an acquiring company or then being a
gold miner with a a larger copper
potential well one of the most
intriguing things about the copper
mineralization they’ve encountered so
far at in the naval lawa Caldera okay so
this is a big volcanic edifice it’s
about 7 kilometers across they uh but
the copper mineralization they’ve hit so
far there’s some very very high grates
in places and that’s both copper and
gold combined all right so you know the
last time I was in Fiji was immediately
prior to covid there was some
mineralization exposed the creek level
was very low at that time so there was
mineralization exposed in some veins in
the creek bottom I remember picking up
samples that were basically solid you
know copper mineralization like solid
calcopy boronite and other copper
minerals and when n those things came
back crazy high great you know 10 or
tens of percent copper as well as you
know tens of G of gold per ton so
there’s a flavor of very high grade
mineralization here now what does that
mean okay well there are systems like
this alkaline gold systems uh around the
world we can point to that have uh that
that have generated some very high grade
copper gold deposits okay and the best
example I can point to that reminds me
of what we’re seeing at uh at navala is
the the Ridgeway deposit in Australia
it’s in New South Wales it’s near the
kadia operation kadia mining operation
and Ridgeway was a copper gold Discovery
in an alkaline or associated with an
alkaline pfy it was made back in the
1990s I think the actual Discovery hole
was 95 or or there 0 1995 we’ll call it
and the discovery was a very compact
like what we call a coup basically a
kind of a cone-shaped um body of
high-grade copper gold that over laid
porfy a fairly narrow you know like
tightly confined pyy but because it was
confined like that it created just
exceptionally high grade
mineralization and this system that they
found reminds me of Ridgeway so with
luck maybe uh here at line one they will
find an analog to the Ridgeway deposit I
think rway ended up producing say around
3 or four million ounces of gold and
then a substantial amount of copper as
well let’s move on to new found gold
traded on the TSX Venture exchange under
the symbol nfg and on the NYSC American
under a symbol
nfgc now Newfound has really been a
leader in exploration in New Finland the
company is just under a billion doll
Canadian market cap lot of drilling
success at the Queensway project but
most recently earlier this week
announced a deal to acquire the Kingsway
project
from Labrador gold $20 million Canadian
worth of shares Labrador gold did right
around 100,000 meters of drilling at
this Kingsway project what do you think
about this land consolidation play now
that Newfound gold has well I guess the
first thing I would say is uh a deal
like this is the product of a very
depressed Market I mean that’s you know
it is in a sense highway robbery
that new found has managed to pick up
the uh the entire Kingsway for what is a
dollar sum that’s a bit less than I
think what they spent drilling those
100,000 M okay so it’s what I would call
a good deal um it’s a natural fit for
the The Queensway property it’s a
natural continuation of the Appleton
fault Corridor and you know I guess what
I I would point to like every everybody
you know who’s invested in Newfound
wants to know where the upside is well
guess what you know the team at Newfound
knows this area knows the system systems
very well and I’m sure that they they
can be uh very effective at drilling
drilling the Kings Way property making
more discoveries similar to what they
found on the Queens Way property I think
the geology you know pretends that it it
goes uh straight up across the border I
don’t see any problem with that maybe a
little bit different change in
geometries of the veins and stuff but
you know with lock new found will go in
there and make more high-grade
discoveries that will add to it’s
already very sizable Discovery at
Queensway now what about at Queens Way
there’s a number of different Discovery
areas on that project that the company
continues to aggressively drill out what
are some of your favorite which ones do
you think have the best potential just
to keep on
delivering well look I don’t really see
I know you’re saying about the different
deposit names and so forth and it’s a
bit arbitrary to me to say oh one
deposit leaves off here and comes
another deposit it’s really all one big
deposit and that’s fine I mean you know
it’s just a bunch of structures you know
the company has done a great job uh with
the technical work they’ve drilled very
systematically they’ve turned the drills
around drill different angles and they
have more you know say more holistically
you know fleshed out exactly what’s
there like they they have a really good
model now of the veins vein sets and
stuff they’re seeing mineralization on
both sides of the Appleton F Corridor
you know these are important discoveries
uh that that the mineralization is way
more extensive than initially thought I
mean if you just think back two or three
years ago when you know this main story
was the Ketone I mean think about it you
know that was the main Z Zone and then
you know then we had lotto and so so
forth like it’s just unfolded gradually
over time I think if I had to say what’s
what’s intriguing to me about the
mineralization they’ve HED most recently
well the stuff on the west side of the
fault Zone there’s a lot like the West
Keats and stuff there’s a lot of flat
structures or very low angle structures
in there at shallow depth okay you know
imagine having a you know 5 m wide
structure dipping at 20° that basically
can be accessed from an open pit U
that’s that’s incredible you know there
there’s a lot of pable material at the
entire Queensway project now okay like
if you look back a few years ago is the
thought was okay this is going to you
know it’s great at surface but it’s
going to go deeper and deeper deeper
quick it hasn’t I mean it’s it’s also
you know got potential at death but what
they found is it’s there’s a lot more at
surface than anybody ever dreamed of
like there’s there’s veins going every
which way so yeah you know I guess what
I would say is that shallow potential
for a very large scale uh very highgrade
open pit is is truly unique in the gold
space these days uh I can’t think of
anything else out there that could
deliver a super highgrade open pable
gold system new new mine okay that’s
interesting closer to surface something
to keep an eye on but what about all
this seismic data that was just
completed that gives them more
information about going deeper so in
terms of growth what do you like about
or do you like the depth potential now
with this seismic data well okay so to
put it in context like at fosterville
all right the swan Zone and and uh and
other well Swan zone is where most of
the high grade of but other shoots also
extended dep but they went down you know
900 M plus okay vertically below surface
all right so we you know organic systems
we know very well okay they go down to
the bows of the earth more or less uh
many of them all right and this is an an
you know epizonal system so we’re kind
of towards a tippy top of the thing in
other words we have all the runway below
us I have very little doubt that 20
years from now people are going to be
drilling holes 900 met below surface
kind of like they did at fosterville and
find more and more and more High grate
okay the size me uh clearly shows there
are literally dozens and dozens of
structures very similar in nature to the
ones they’ve already drilled but that
extend or even emerge at depth like some
of these don’t come up to surface there
are many many new structures to test at
depth even laterally to the the ones
that they’ve drilled today you know so
near surface there’s even more
structures to test this thing is wide
open in every respect okay it’s it’s
going to be a gold camp and that’s the
way people need to think about it I I
think that whoever ends up operating a
mine here whether it’s new found or you
know major mining company coming in and
buying them I think they’re going to
have a really good home that generates
uh you know a tier one asset for 20 plus
years that’s that’s the way I see it
that perfectly into its1 billion doll
market cap then Quinton what type of
drilling what type of news do you think
needs to happen to grow this market cap
even higher well obviously we need to
see you know interest in the gold space
come back it’s uh starting to come back
you know tepidly hopeful that this
everything’s turning around here but is
that really going to drive you know an
increased share price I think certainly
we see m&a start to pop up here soon
that could have a pretty big impact on
on the share price like in the shorter
term uh let’s say we see a flurry of m&a
over the next few months as the gold
price picks up yes Newfound would be one
of the first companies to benefit from
that but what’s really going to drive
the value of this project or this asset
in my view is production okay getting a
deposit like this into production is
absolutely critical now at fille uh the
mine was in an operating mine they had
uh they’ve been operating there for
something like 20 years or so and they
had produced a little over a million
ounces around the time they hit the high
grade okay so they had the
infrastructure they were in production
uh and they hit the high grade and then
it became a wonderful story why because
the gold that was produced was at such
low cost it was insane okay like they
were they were producing an ounce of
gold for say $400 US that makes a lot of
money okay that TR translates very
strong cash flow and then the cash flow
is you know used to rate like people see
okay this thing’s kicking out you know
$600 million a year hey you know let’s
use a multiple of 12 boom all of a
sudden you got a you know a seven or
eight billion dollar company okay like
that’s the story of fost now here at
Newfound imagine 2 three years from now
they have a mine operating and and let’s
say it’s producing um 2 300,000 oun even
of gold and it’s producing that $400 an
ounce us okay that thing’s like Gold’s
2400 guys that’s $2,000 now I mean this
this is the kind of mine that can mint
money really I mean just print print
money all right so this thinging could
kick out free cash flow like they saw at
fost bille back in the day you know 600
700 million annually sure no problem
what would that result in a very very
significant increase in valuation
compared to its current market cap all
right let’s move on to aftermath silver
traded on the TSX Venture exchange under
the symbol a a and on the otcqx under
the symbol a a
GFF this is a about $61 million market
cap company it’s silver exploration in
Chile and Peru Flagship asset being in
Peru give us a little overview in terms
of what you think the potential is here
of exploration growing on the resource
already at the Peru asset sure this is a
beua is the asset in Peru it’s down in
southern Peru kind of in the puno region
um I know the region pretty well done
some work down there few years ago um we
had a project not too far away uh look
beua is is basically a carbonate
replacement deposit so you have a bunch
of limestones that have been attacked by
hydrothermal fluids probably associated
with a pory that have basically fed
minerals into that Limestone replace the
Limestone which is calcium carbonate
with other minerals and in this case it
includes things like Mass manganese
carbonates manganese is a you know a
Ferro alloy metal it’s also used in
batteries uh but it’s very common to see
manganese
replacing uh Limestone or be associated
with pyy deposits that come up in
Limestone where you get a lot of fluids
coming out of the pyy and replacing the
Limestone beds okay so Magan big
component of this system uh there is
also a bit of copper and silver the
copper of course is you know a direct
Affinity with the pyy itself uh and then
the silver is because this is a
relatively high level in the system I
think is you know kind of the epithermal
expression of of this pory look I it’s a
big system uh uh and look I don’t want
to um you know complicate things too
much for people but uh you know when you
start to mish mash a bunch of metals
together especially with manganes they
become metallurgically challenging okay
uh manganes it it prevents the direct
use of Cyanide and some other techniques
that we would use to normally recover
silver for example okay so you have to
go out of your way and find other
metallurgical techniques to process uh
this type of mineralization and in this
case aftermath silver has done a lot of
work here recently recognizing that
there is a metallurgical challenge
they’ve done a lot of work recently to
show that they can get recovery of
Manganese but also the silver and the
copper using H you know sulfuric acid so
basically a hydrometallurgical approach
where they dissolve the the metals of
interest in acid in this case and then
reprecipitate the metals out okay so the
manganese they precipitate out as a
sulfate
and that’s you know a sellable product
and then the copper and the silver well
the silver is PL it out I think in the
meroc crow scenario so it’s a type of
plant that recovers silver out of
solutions and then the the copper I
believe is
electrolytically refined out of the
solutions of of sulfuric acid as well
okay now in my view very interesting
that’s a lot of chemistry I guess is the
best way to put it it’s not necessarily
common place to see a mine and and
operation built of that type okay so
this is bit on The Cutting Edge of
things um I hope the company can can
sort it out make a produ productive mine
here but it is you know it is a
metallurgical challenge that uh it’s
going to require some engineering and
and you know permitting and some other
aspects like how do you get how do you
get Su you know sulfuric acid way up in
the the high mountains of Southern Peru
you know like there’s some challenges
here okay that’s that’s it pure and
simple look they have chaoo in uh in
Chile and chinel as well those are low
sulfidation vein systems uh they’re
silver gold those are also interesting
uh I don’t know as much about those
assets didn’t work down in that part of
the country but I do know some of the
epithermal vein systems in Northern
Chile and I guess what I would say is
you know those are going to take some
exploration there is a resource right
now choyo I think on an order of you
know 40 50 million ounces of silver as
well as maybe a few tens of thousands of
ounces of gold but you know that’s
probably not quite enough to support the
Pea and you know the economic work that
needs to be done to see how it can be
Advanced but but uh they do look like
interesting projects and uh I certainly
wish the company well okay one quick
follow up on that Berlin Gua project
then company already has pretty large
resource there over a 100 million ounces
silver and m& category over half a
billion pounds of copper in the m&
category I realized look the Met testing
the metallurgical work that could be a
concern here what about Reed or’s growth
potential though do you see that being a
driver for the story um look they have
in their their presentations and stuff
and news releases some pretty good maps
that show the areas that they’ve drilled
you know and you know my recollection of
that country down there is it’s kind of
low well it’s high elevation but it’s
Rolling Hills like not like super steep
hills they’re kind of rolling and grassy
and stuff but there’s a heck of a lot of
outcrop in other words there’s not a lot
of room to hide I would say that in
general the upper part of the system
here being the manganese uh silver
copper mineralization has probably been
tested fairly thoroughly like the extent
of it uh is my bet now is there a pyy at
depth I wouldn’t doubt there’s something
more to to test there um and you know
whether the company has any desire to to
pursue something like that I I don’t
know I I haven’t followed the company
close closely enough to know if they
would chase a pyy at depth uh but I
would say the the near surface part of
this system is is probably drilled out
by the by and large okay let’s move on
to ABRA silver it’s traded on the TSX
Venture exchange under the symbol AB a
and on the otcqx under the symbol ABB RF
this is a more advanced Silver Company
the Diablos project already has a PFS
release that came in at US $500 million
npv market cap of this company Canadian
is in the about
$226 million range they have a large
resource 258 million silver equivalent
ounces in m&
categories what do you think about
resource growth potential here is this
turning more into development play in
your eyes uh definitely turning into a
development play and I think the news
that we saw you know with kenross taking
an interest in in Abra shows that it’s
caught the attention of of major mining
in this case a gold company which is
really interesting I mean that think
about that that’s that speaks volume so
you know Ken Ross they’re they’re good
minor uh I don’t think the fact that
it’s silver dominant versus gold is that
big of an issue but uh you know they’re
clearly interested in it because it is
an advant stage project and it’s big
it’s a it’s a big silver oxide system um
the the focus that they have at this
point is developing an open pit oxide
silver gold mine and it’s you know it’s
got a pretty healthy Reserve Base here I
mean it’s it’s something that’s going to
generate a mind that say is in the top
10 you know silver producers on an
annual basis uh that’s wonderful okay
this this is the way I like to see a
project go like this you know it’s no
need to drill out you know 5 billion
ounces you know let’s find a happy
number and build a mine so um you know I
think they have if memory serves I think
they have somewhere in the neighborhood
of 12 or 15 years uh defined in the
current mind life um with all deposits
I’m sure they’ll find some more okay um
there’s you know pretty good GE physical
data and other data that suggests
there’s more extensions of the the
system not sure that they’re looking to
go chase more and more when the Market’s
tough and you know they don’t want to
dilute the the story too much uh so I
think right now they’ve shifted gears
and they’re focused on on building a
mine out of this you know the the first
five years of production is on the order
of just under 15 million ounces of
silver I think you know like the silver
Institute numbers came out uh I think it
was last week and if memory serves I
think that would place them in the
neighborhood of uh maybe’s fifth or six
on the that list okay people will
probably check check up on on their own
and tell me I’m wrong but I I think that
would make you know this is you know
somewhere around the fifth or sixth
largest individual silver mine in the
world and that doesn’t include the the
gold component as well there’s a bit of
a gold kicker with this that U uh if you
convert to Silver equivalencies would
would bump that number out further it’s
a good story again like geologically I
think it’s probably associated with the
poyy it in this case uh this is not a
manganiferous it doesn’t have manganes
and stuff like the Metallurgy uh like
I’ve reviewed this pretty closely a
couple years ago the Metallurgy looks
pretty good so in terms of leech ability
and stuff I think this is going to have
a very good outcome um but I do think
that at depth you could I’m not saying
promises but you know there could be
something like a felo uh type uh Frey uh
driving this thing whether it’s shallow
enough that you know it could present
itself as a Target that’s probably
debatable but uh it just makes I mean if
you look at felo for example there’s
this kind of blanket like silver deposit
you know over the top of the the py and
as they chase it down boom they find the
pyy well who’s to say you couldn’t do
something like that here I don’t know so
when I hear poery that to me talks big
massive mines large scale mining we
recently had the Jack Zone that that was
being drilled out that was yielding them
higher grade here so how would you
balance out from an investment
perspective here potentially drilling
some of these other zones even growing
that Jack Zone that is of a higher grade
or going massive with a poery play
drilling deep for a poery look it’s a
good philosophical debate um you know
obviously you want to create value
through expiration are the shareholders
out there going to reward somebody for
spending you know a few million bucks in
a tough Market to go chase a deep porfy
right now maybe maybe I don’t know but
the say at the same time people could
say well see you’re you’re delting the
company and you’re you’re basically uh
you know spoiling an already good story
you’re in the form of a shallow deposit
you know why why go chase that right now
and there’s logic to that too and and I
would I would say the company’s chosen
the right path I don’t think they need
to go chasing that deep py I’m not
saying that that play isn’t there I
think there’s something down there but I
don’t think they need to go chasing it
straight up right now like you know get
a mine built get cash flow uh poke some
holes down maybe in a few years now you
know the one caveat I would say though
I’ve looked at the geophysical data
around this Jack Zone and there do seem
to be natural extensions of it um I
remember looking at this I think two
years ago when they were first kind of
and the Jack zone is kind of down low
you know it’s down in the valley and uh
kind of blind is buried so you know I
remember them hitting some
pretty Specky holes down here like U
nice thick blanket like mineralization
and pretty high grade and yada y you
know it’s looking pretty good my
recollection is there there’s some uh
there’s GE physical extensions that go
Way Beyond the area that they’ve drilled
now you know would that be worth
pursuing a bit probably you know that
that might think finding more shallow
stuff now you could wait until you got a
mind built though too you know build a
mind get cash flow don’t dilute anymore
build a mine
go and then maybe you drill all that
stuff later all right Quinton I’ve taken
up enough of your time this week we
should say that none of this is
investment advice I know how much our
audience likes when we talk about
specific stocks and Quinton is nice
enough to share his thoughts on these
stocks all of which ones that you have
sent in please keep sending the stocks
into to me my email address is Fleck K
report.com Quinton and I will be back
next week with another segment of stock
talk diving into four other companies
that you have all sent me I hope you all
enjoyed this segment and Quinton I
really do appreciate you taking time and
sharing your thoughts on all of the
compan

Welcome to another segment of Stock Talk.
 
I am joined again by Quinton Hennigh, Geologist, private investor and geologic advisor to Crescat Capital. We focus this week on Lion One Metals, New Found Gold, Aftermath Silver and Abrasilver. 
 
Please keep sending me the companies you want Quinton’s thoughts on and we will keep this series going. Next week we will be back with thoughts on 4 more companies. My email address is Fleck@keport.com.

Timestamps
0:00 – Lion One Metals, exploration around the known resource
2:55 – New copper area exploration potential
4:32 – Lion One big picture outlook, mining and copper porphyry potential
7:30 – New Found Gold, Newfoundland land consolidation
9:30 – Queensway Project, exploration outlook
12:01 – Seismic data on Queensway, depth potential
13:58 – $1billion market cap, what takes this higher
16:36 – Aftermath Silver, Peru asset overview
21:20 – Resource growth potential
22:49 – AbraSilver, development play or resource growth?
26:52 – Balance between high grade resource growth vs porphyry discoveries

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