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LOGAN RESOURCES LTD: THE INVESTMENT CASE

Gold explorer Logan hoping to make the grade in Utah and Nevada

Last year, it struck an option deal with Pilot Gold Inc, whereby it can evaluate nine exploration projects
Gold explorer Logan hoping to make the grade in Utah and Nevada
INVESTMENT OVERVIEW: LGR The Big Picture
Pictured is Logan's Brik property

Logan Resources Ltd (CVE:LGR) offers the investor exposure to the gold price as it hunts for the precious metal in Utah and Nevada.

Last year, it struck an option deal with Pilot Gold Inc, whereby it can evaluate nine advanced exploration projects in these mining friendly areas and earn a participating interest of up to 80% on four of them.

It can take on one, two or all of them -  it's up to the company. It has a wealth of former data to look at and  is also embarking on its own exploration.

Once completed, Logan can earn a 51% interest in any project selected by spending US$1mln in the first 12 months and by issuing shares. It can later earn up to 80%.

The investment case

Mark Morabito, chief executive, has told Proactive the firm offered low downside risk and unlimited upside potential.

"If you believe in gold and you're going to take a position that gold has good upside from this point, the downside risk in Logan at the current share price of 10 cents Canadian is almost nothing and the upside is somewhat unlimited in case any of these prospective projects in Utah and Nevada hit and then we have a nice little insurance policy with our exposure to the uranium space," he said.

The projects

The nine USA projects the firm is considering are Brik, Drum, Griffon , Antelope,  Easter, Sandy, Anchor, Viper, Stateline.

All have seen previous work and Brik, in Nevada, has been selected as a priority target as previous gold has been identified near surface.

Another project called Drum is adjacent to a former mine which produced 85,000 ounces at an average grade of 1.3g/t (grams per ton) of the yellow metal, and where permits have been submitted for drilling this year. Griffon, also in Nevada, is a past producing open pit heap leach that produced over 100,000 ounces at an average  grade of 1.2g/t.

And exposure to uranium..

Logan also has a 20% carried interest in the Gorilla Lake property in the western Athabasca Basin, Saskatchewan, around 15 km north of the past-producing Cluff Lake uranium mine which operated from 1980 to 2002.

Operator ALX  Uranium Corp (CVE: ALX) is advancing the site, which has seen previous drilling success, and owns 80%. Work at the 19,000 acre site includes a four-hole diamond drilling program for around 1,000 metres.

 ALX Uranium Corp  began drilling In February this year.

The uranium space has been on its knees since 2011 and the Fukushima Daiichi disaster but there are now signs of life in the market, not least due a production cut in Kazakhstan, and this project is set to be a beneficiary of any upswing.

Recent progress is clear....

And recent progress has been clear. The group is now set to generate drill targets after it completing its review of the database concerning one property -  its Angel Wing claims in Nevada.

It comes after it inked a mining lease and purchase option agreement over the claims - effectively consolidating the greater part of the Viper district - and therefore its Viper project -  an early-stage, low-sulphidation epithermal gold target.

It has now kicked off the drill program at its Antelope gold project.

The work is designed to confirm the results from selected historic drill holes and to test the northwest extension of near-surface mineralization.

In all the reverse circulation (RC) program will total around 610 meters in 4 to 5 holes.

And last month (May) it begin preparation work on a second phase of drilling on the Brik property in Lincoln County, Nevada.

The plan is for a total of approximately 1,995m in 10 core holes, to be carried out in the summer and autumn.

Phase One drilling comprises eight reverse-circulation (RC) holes at the Hidden Treasure target area. Phase 2 will target Hidden Treasure again and also Sinter, and Maui Wash.

Six holes have been designed within and adjacent to the main mineralized zone at Hidden Treasure and two holes have been designed each at Sinter and Maui Wash

Looking ahead...

Morabito said earlier this year that newsflow will include more results and more drilling as it hones down the focus on which property or properties to concentrate on.

"We have a great project portfolio and a great team of experienced geologists and I think the macro backdrop is also very favorable so I'm looking forward to it very much," he said.

 

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