AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF, FRA:FRA: MA30) earlier this week outlined why it believes the market is undervaluing its Cape Ray Project in southwestern Newfoundland, pointing to an established gold resource and a growing pipeline of exploration targets close to an operating gold mine.
Speaking with Proactive, CEO Sam Pazuki said the company has already defined meaningful gold ounces, something he suggested investors may be overlooking. AuMEGA Metals has approximately 450,000 ounces of gold in the indicated category and a further 160,000 ounces inferred, at an average grade of around two grams per tonne. He noted that roughly 95% of the mineralisation is within 150 metres of surface.
Interview highlights
- AuMEGA Metals holds one of the largest land packages near the Valentine gold mine in Newfoundland
- The company has a defined gold resource of more than 600,000 ounces
- Most mineralisation is shallow, enhancing potential project economics
- A historical scoping study was completed at significantly lower gold prices
- Silver may be included in future resource updates
- Exploration has identified mineralisation linked to a previously overlooked granite intrusion
- Geological similarities noted with major discoveries in the Yukon and Western Australia
- Expanded exploration planned for 2026
Proactive: Welcome back to Proactive Investors. I’m your host, Kerry Stevenson. Sam Pazuki is with me today, CEO of AuMEGA Metals, which is developing the Cape Ray Project in Newfoundland. Sam, good to see you.
Sam Pazuki: Thanks, Kerry. Great to see you again.
Proactive: Why do you think the market is missing something with AuMEGA Metals?
Sam Pazuki: We’ve done a lot of great work. Newfoundland is emerging as a gold jurisdiction, and the Valentine mine has gone into production. Equinox Gold continues to make new discoveries along the same structure, and we’re sitting on one of the largest land packages on that structure. We actually have a defined gold resource, and I think the market has forgotten that those ounces in the ground are worth something.
Proactive: Can you give us the numbers?
Sam Pazuki: We have about 450,000 ounces in the indicated category and 160,000 ounces inferred, at around two grams. About 95% of the mineralisation is within 150 metres of surface. That’s a high-grade, shallow resource. There was also a scoping study completed in 2020 at US$1,550 gold, and the economics were solid even back then.
Proactive: What about exploration upside?
Sam Pazuki: Major gold belts usually host multiple deposits. We believe there’s more to find. We’ve spent years doing the groundwork to set the project up properly. One key area is Cape Ray West, particularly around the Isle aux Morts granite. Nobody thought it was mineralised, but our work last year identified mineralisation there. The geological setting is similar to Snowline in the Yukon and the Hemi discovery in Western Australia.
Proactive: What’s next?
Sam Pazuki: We’re set up for 2026. We’ve got multiple targets only a few kilometres from the existing resource, and we’re ready to advance them once we’re back in the field.