Temex Resources (TME.V) has released an excellent update on their 100% owned Juby Gold project in Ontario, Canada less than 50 kilometers from AuRico Gold’s (AUQ.TO, NYSE:AUQ) Young-Davidson mine.
The new resource estimate now contains in excess of 3.2Moz of gold (in the indicated and inferred categories) at an average weighted grade of approximately 1g/t, based on a cutoff grade of 0.4g/t gold.
If we apply a higher cutoff-grade of 0.6g/t, the resource decreases to 950koz in the indicated category and 1.7Moz in the inferred category, for a combined total of 2.65Moz at an average weighted grade of 1.3g/t gold.
This is an excellent update, and as there’s potential for further expansion, we are quite confident the Juby gold project might eventually contain in excess of 5M ounces of gold, as there are several gold occurrences 3 kilometers directly along the trend and no drilling in between.
Temex Resources currently has in excess of 3.8M attributable ounces of gold on the Juby and Whitney project. As the company has an enterprise value of approximately C$22M based on the current share price of C$0.18 and C$7.5M in cash, Temex is currently trading at a valuation of less than C$6 per ounce of gold in the ground, which makes them very attractive.
Disclosure: The author holds a long position in Temex Resources. Please see our disclaimer for current positions.
