QIS Capital - New Company Profile 2013 - December 6th 2013
Included in this update:
- Introduction to Manado Gold Corp. (MDO:TSX-V)
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Manado Gold Corp. (MDO:TSX-V)
Current Price: $0.065
QIS Capital is pleased to add Manado Gold to its list of Feature Companies and we look forward to providing subscribers with regular updates on the company. A full corporate profile for Manado will be available soon in the Feature Companies section of the website at www.smallcaps.ca/feature_companies.
As always, investors are encouraged to complete their own due diligence prior to making any investment decisions based on information provided by QIS Capital.
Incorporated in August 2010, Manado Gold Corp. is a junior mineral exploration company focused on two core properties in British Columbia.
Manado is currently concentrating its efforts on the Takla-Rainbow property located in the Omineca mining division of BC about 156km northeast of Smithers. This region was first prospected in the mid-1800s for its placer gold.
On September 23, 2013, Manado entered into an option agreement with CJL Enterprises Ltd. whereby the company earned the right to acquire a 100% interest in the property which consists of six mineral claims covering 4,545 hectares (11,231 acres). Under the terms of the agreement, Manado will be able to acquire a 100% interest in the Takla-Rainbow property by making cash payments of $150,000, issuing 600,000 common shares, and incurring $250,000 in exploration expenditures over four years.
Takla-Rainbow was actively explored between 1969 and 1992 by such companies as Imperial Metals Corp. and Eastfield Resources Ltd. Past sampling and surveying has identified a number of zones of gold and copper-gold mineralization. Shallow diamond drilling of 87 holes totaling almost 17,000m was concentrated on three structurally controlled gold-bearing sulphide mineralization zones, namely the West, East and South zones. Collectively, these zones represent a possible near-surface, bulk tonnage gold deposit. In 1988, Imperial Metals calculated a resource estimate of 321,101 tons grading 0.25 oz/ton Au. In addition to its bulk-tonnage gold potential, there is also a zone of low grade porphyry copper-type mineralization, called the Red zone. A few historical drill holes have been carried out within this target but its size and exploration potential have largely remained untested.
On November 25, 2013, the company announced that it had completed a five-hole confirmation diamond drilling program on the Takla-Rainbow property. In total, Manado drilled 605.8 metres on four sections spaced at 50m intervals. The purpose of the drill program was to confirm gold-bearing mineralization within the West zone of the property. The diamond drill core was logged and 310 core samples, including quality control samples, were collected. Assay and analytical results are expected within a few weeks.
In September 2013, Manado exercised its option to acquire a 75% interest in the Clisbako property pursuant to the terms of an agreement with Clisbako Minerals Inc. In exercising the option, the company paid US$100,000 and issued 600,000 common shares to Clisbako Minerals and incurred exploration expenditures totaling $445,343. All of the claims that comprise the Clisbako property are in good standing until November 30, 2020.
Manado’s Clisbako property is located approximately 125km west of Quesnel, BC and encompasses ten mining claims covering over 3,300 hectares on the interior plateau region of the province. Numerous copper and gold discoveries have been made in this geographical region including the New Prosperity project operated by Taseko Mines (TKO:TSX) and the Blackwater discovery owned by New Gold (NGD:TSX).
Positioned about 100km south of Clisbako, the New Prosperity project contains an estimated 5.3 billion pounds of copper and 13.3 million ounces of gold. The Gibraltar mine is located about 150km to the east and had produced over 115 million pounds of copper by the end of 2010. Another former mine, Blackdome, is positioned 120km to the southeast.
To date, more than $2 million has been expended on the Clisbako property by a number of companies including Phelps Dodge in the mid 1990s. Previous exploration work identified the presence of copper, silver, lead, zinc and molybdenum, however, the focus of Manado’s exploration program is gold. Past drilling has confirmed the existence of gold mineralization with samples as high as 8.5 grams/ton (g/t) gold and 45 g/t silver. Prior drilling at Clisbako has been to depths of only 47-197m. In 2012, the company completed a 1,500m drilling program on the property within the South and Bari zones, however mineral values were not strong enough to warrant further drilling in those specific areas. In the next round of drilling at Clisbako, other locations will be chosen from the numerous targets available on the property.
On November 13, 2013, Manado closed a private placement financing by issuing 3.1 million units at a price of $0.05 per unit for gross proceeds of $155,000. Each unit consists of one common share of Manado and one share purchase warrant, with each warrant entitling the holder to acquire one additional share at a price of $0.05 per share until November 13, 2016. The securities issued under the private placement are subject to a hold period expiring on March 14, 2014.
With the challenges in today’s junior resource sector, it is important for companies to have promising properties, a stable balance sheet, access to capital, limited share structure, and active operations. Manado meets all of these criteria and while still challenged by the current investment environment, will have a steady flow of news forthcoming over the next 6 months. The company’s current enterprise value is just $1.1 million. The management team is stable and committed to building a strong company through the development of its properties. Manado will consider additional property agreements deemed to be beneficial and complementary to the company’s existing operations in order to diversify its mineral interests.
Shares Outstanding (as at Nov. 26, 2013):
Basic: 21.0 million*
Fully-diluted: 26.0 million
* officers and directors own approximately 17% of the common shares issued and outstanding.
Address: 650 West Georgia Street, Suite 950, Vancouver, BC V6B 4N8
Phone: (604) 685-4745
Fax: (604) 685-9182
Contact Person: David Ryan
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. Certain statements in this report may constitute “forward looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly nil shares of Manado Gold Corp. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.