Beaver Creek, Colo. – Fury Gold Mines (TSX: FURY; NYSE: FURY) CEO Tim Clark says the market is undervaluing the company’s portfolio despite delivering a resource expansion and recent exploration successes.
The company’s Eau Claire project in Quebec’s Eeyou Istchee James Bay region saw its measured and indicated resources grow by 40% in May, reaching 1.16 million oz. gold at 5.64 grams gold per tonne in 6.4 million tonnes. Backed by $7.2 million in cash and a liquid $52.4 million stake in Dolly Varden Silver (TSXV: DV; US-OTC: DOLLF), Fury reported 12.16 grams gold per tonne over 3 metres at the nearby Serendipity target this week.
Clark, a capital markets doyen after a 23-year career with the likes of Barclays Capital, Deutsche Bank and BMO Capital Markets, expressed frustration over the disconnect between Fury’s gold resources and its current market valuation.
“The market continues to overlook the value of what we’ve built,” he told The Northern Miner this week during an industry event in Beaver Creek, Col. “We’ve seen companies with far weaker assets attract more attention simply because they are better marketed or perceived differently,” he said without offering examples.
At 52¢ per share on Thursday morning, Fury’s Toronto-quoted stock is down about 22% since the start of the year, having touched 42¢ and 80¢ over the past 12 months. It has a market capitalization of $79 million.
Analyst: ‘promising’
Fury’s Serendipity drill results, where one hole included a 1-metre section grading 35.1 grams, are promising, according to Haywood Capital Markets mining analyst Marcus Giannini. The intercepts align with biogeochemical anomalies and suggest potential for a high-grade gold corridor, Giannini said in a note this week. Serendipity, 16 km northeast of Eau Claire, is the first of several targets keeping Eau Claire ripe for additional discoveries, he said.
“We view Serendipity as a true greenfield target warranting further investigation, as Fury’s targeting methodology continues to yield positive results,” Giannini said.
Despite Eau Claire’s location near Newmont’s (TSX: NGT; NYSE: NEM) 270,000-oz.-gold-per-year Éléonore mine, Fury has struggled to gain market recognition. It fits into the broader trend where the VanEck Vectors Gold Miners exchange-traded fund of large-caps (the GDX index) has gained 34% over five years – double the performance of the smaller-cap GDXJ index – showing how projects are struggling to raise money.
Fury’s New York Stock Exchange listing, which typically attracts greater scrutiny and investor confidence, has yet to deliver an expected liquidity boost, Clark said.
The Serendipity drilling confirms the effectiveness of biogeochemical targeting, with high-grade intercepts significantly outperforming historical results, Clark said. The drill result announced on Monday is among targets 2 km apart along key deformation zones and shows potential for a larger mineralized system, the CEO said.
Serendipity
With more drilling planned next year at Serendipity, follow-up work at the nearby Percival prospect, and continued exploration at the Committee Bay gold project in Nunavut, Fury is planning for growth—whether the market recognizes it or not, the CEO said.
Fury’s drill program this year at Serendipity, which covered 3,871 metres across 10 holes, targeted five geochemical anomalies along the Hashimoto Deformation Zone. Percival has an inferred resource of 211,000 oz. at 2.34 grams gold per tonne in 2.8 million tonnes.
“Serendipity is the first of more than a dozen new targets we’ve developed at Eau Claire, and these results demonstrate our targeting techniques work,” Clark said.
Fury’s Éléonore South project also holds further upside. The company has traced continuous gold over 2.3 km of strike this year, with highlight intercepts including 137.5 metres grading 0.44 gram gold and 115.5 metres grading 0.5 gram gold.
The project remains open for further exploration, and Fury is planning follow-up work after completing a biogeochemical sampling grid on a newly acquired area from Newmont.
Acquired through the 2020 merger with Auryn Resources, Committee Bay is a high-risk, high-reward asset with significant discovery potential, Clark said.
Its location on the 300-km-long Committee Bay Greenstone Belt offers targets for future resource expansion. Market conditions may have to improve for more exploration, but the company has placed camp infrastructure, rigs and fuel on site.
Clark was optimistic: “It’s where we swing for the home run.”
Fury isn’t alone. Investors apparently have forgotten mining exists, and have never heard of exploration.
The comming high tide will raise all ships . Have faith mu friends. Glta