Full ownership of top-quality properties and maintaining a tight capital structure is a recipe for success that every junior exploration company strives for. Achieving it in the face of cost and time pressures often proves illusive.
But Robert Boyd, president and CEO of Vancouver, B.C.- based Endurance Gold Corporation (TSX.V:EDG), says it can be done. Endurance has shown how exploration can be successful and still achieve these objectives.
“What’s unique about Endurance Gold is that, despite a history of more than 15-years, about 60 per cent of the issued outstanding shares are still controlled by three insiders, including myself,” adds Mr. Boyd.
The company aims to ultimately secure 100 per cent ownership of the properties it acquires and explores. Mr. Boyd says this defines Endurance as a project generator, which involves acquiring projects, advancing the project and then looking for opportunities that flow from them.
In Wyoming, for example, the company acquired 100 per cent ownership in a large strategic property in the Rattlesnake Hills, which it explored for several years and then subsequently sold for cash, royalty and shares in GFG Resources Inc.
More recently, Endurance acquired an option to earn a 100 per cent ownership of the Reliance Gold Property in Gold Bridge, B.C., near B.C.’s largest historic gold producer. Shortly after acquiring, encouraging surface sampling results of 10 gpt gold over five metres were announced.
“We identify opportunities like Reliance that have outstanding exploration potential and then add value through exploration and, in some cases, drilling if it advances the project to exploration success,” says Mr. Boyd.
Once the project reaches a critical stage, the company can consider many strategic options, which could include selling more equity to fund continued exploration, completing a joint venture with a larger company, selling the project with upside exposure, selling the company or spinning out a sole-project exploration company.
The key to alternatives, adds Mr. Boyd, is 100 per cent ownership of the project, which gives Endurance the flexibility to take action that best serves the interests of all shareholders.
He believes Alaska is an under-explored jurisdiction that offers great opportunities for a company like Endurance. In central Alaska, Endurance has been exploring its 100 per cent owned Elephant Project for several years and has outlined six large targets that need drilling. Two have already had initial drilling success with significant gold discovered in bedrock.
“Alaska hosts about 40 per cent of U.S. gold resources, with something like 200 million ounces indicated, and has an attractive regulatory regime,” says Mr. Boyd, pointing out that the Fraser Institute tapped the state as one of the top five jurisdictions in the world to explore in their survey of international mining and exploration executives.
With over $3-million in working capital and a market cap of only around $5.5-million, he believes Endurance is well positioned to continue seeking opportunities in low-risk North American jurisdictions like Alaska and B.C. where the company can continue implementing a business plan that has a proven record of success.
For more information, visit endurancegold.com
Produced by Randall Anthony Communications. The Globe’s editorial department was not involved in its creation.