Last week, I wrote a concise article discussing a trio of junior speculative plays that I'm quite fond of, given the remarkable outcomes they were trumpeting. On the same date that I published that piece, I had a discussion with Tiger Gold Corp.'s (TIGR:TSXV) higher management.
They had just released genuinely stupendous drill results from the inaugural perforations in a 20,000-meter drilling campaign at their Quinchía Gold Project nestled in Colombia's fecund Mid-Cauca gold district.
Following our 60-minute conversation, I felt like a dimwit, as there existed a cornucopia of crucially important details that I had utterly overlooked. It dawned on me then that this enterprise merited a significantly more discussion, delving into the company's identity and aspirations.
On April 21, the company disseminated an additional set of scorching assay findings, leading to me to want to expound on my musings from last week.
Bore QDQDH-27 from the Dos Quebradas deposit exhibited readings of 282.5 meters grading 0.6 g/t Au from a depth of 18 meters. While 0.6 g/t gold may appear inconsequential, predicated on the current quotation for the yellow metal, a solitary gram of gold commands US$154 rendering 0.6 g/t worth north of US$92. A 282.5-meter intersection is gargantuan. Even with a tenor of 0.6 g/t gold, it translates to a gram/meter intercept of 169.5. For the benefit of nascent readers of my oeuvre, I shall reiterate that any value surpassing 100 gram/meters constitutes a phenomenal hole.
If you look back at my article last week, I wrote that Dos Quebradas alone boasts a 495,000 gold ounces historical resource. It goes without saying that it would be enormously advantageous for Tiger Gold to assimilate that historical endowment into their extant 2.08-million-ounce 43-101 resource. If memory serves, their website indicates they anticipate a contemporary 43-101 to reach fruition in H12026.
Tiger Gold is also managed by one of the most seasoned CEOs of a junior resource company I have encountered in a quarter-century. Robert Vallis, the chief executive, previously held positions at Barrick Mining Corp. (ABX:TSX; B:NYSE) and Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE). I found myself thoroughly impressed by the insights he shared with me. He is of the highest caliber and possesses a global perspective.
Vallis understood the project's potential and discerned that the Australian junior at the helm was floundering. He procured over 2.5 million ounces of economically viable gold for a mere CA$2 million upfront and CA$14 million over an extended timeframe. I quipped that the Florida police were searching for him. He let out a somewhat perplexed chuckle, uncertain of my intended message. He believed that I was conflating Tiger Gold with the eponymous golfer.
I wasn't; I was trying, albeit ineptly, to convey that they stole the project.
Given that the 495,000 ounces at Dos Quebradas are solely historical and not 43-101 compliant, they were precluded from incorporating them into the September 2025 PEA for the project. Said PEA ascribed a NPV exceeding CA$1.19 billion to the 43-101 resource of 2.08 million ounces of gold, along with a 36.5% IRR and a 2.6-year payback at a gold price of US$3,700. However, gold is evidently not trading at US$3,700, but rather north of US$4,700.
Even if one were to appraise the company at a paltry 1% of NPV, that would yield a market capitalization surpassing CA$120 million, whereas the market currently assigns the company a valuation of CA$85 million. That figure itself is perplexing, considering the company has roughly CA$18.9 million in its coffers, resulting in an enterprise value of a mere CA$66 million or approximately US$48 million, equating to gold being peddled in the earth for US$18.50 per ounce.
The assay figures alone neglect to convey the story of this monumental heist. The fully financed 20,000 meter drilling endeavor has already unveiled the potential for a high-grade feeder zone lurking beneath the pit resources at Tesorito. The breccia mineralization exhibits loftier gold grades and the presence of copper mineralization. Both exceedingly momentous, as it alludes to a porphyry component at depth, unlocking the prospect of high-grade subterranean extraction in tandem with an open pit for the 2.08 million ounces already delineated at Tosorito.
Tiger Gold has it all. The company secured gold for around US$5 an ounce and is remitting that sum over time. It's an advanced-stage undertaking with a PEA and aspirations for a PFS a year hence. The management team is seasoned and resolute in their ambition to emerge as Colombia's freshest gold mine. The prevailing gold price necessitates action, and armed with CA$19 million in the treasury, the management is poised to deliver.
Tiger is a sponsor. I partook in the private placement on a modest scale, but have substantially added in light of the news they are disseminating. Naturally, I harbor a bias, so perform your own due diligence. Still, if presented with the opportunity to invest in management of this stature and procure gold at US$18.50 an ounce, you need not rely on my counsel to recognize the bargain at hand.
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Important Disclosures:
- Bob Moriarty: I, or members of my immediate household or family, own securities of: Tiger Gold. My company has a financial relationship with: Tiger Gold. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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