Golden Sky Minerals (AUEN.V) (US OTC: LCKYF) led by CEO, John Newell, is an exploration company that acquires grassroot properties carefully selected by their exploration team that is lead by VP Exploration, Cameron Dorsey. These projects are then explored utilizing modern exploration to define drill programs to produce discoveries. Golden Sky has produced back to back discoveries on their Hotspot & Bullseye properties. The company owns 6 properties in BC & the Yukon; all properties are 100% owned with no underlying royalties or hidden property payments.
Their current focus is on their Hotspot Property which is a low sulphidation epithermal gold property with characteristics of a Cu Au Porphyry. They are currently awaiting results from their 4 hole, 1500m drill program which is a follow up to their 2020 Discovery hole which intersected 1.34 g/t Au over 71.6 meters from 4.5m depth. A portion of this hole was not included which had an assay of 17.82 g/t Au over 3.05m that was returned from 1.52m to 4.57m and comprised a mix of strong gold-bearing overburden and bedrock. Due to limitations of equipment used in 2020, they were limited to a maximum vertical depth of 75m. Of interest were anomalous molybdenum values suggesting potential for various styles of mineralization at depth. The 2021 Diamond Drill program will be testing a theorized Copper – Gold – Moly Porphyry as well as confirming the near surface low sulphidation epithermal potential. Initial Assays from this phase are expected from the labs in November. (Understanding that for 2020-2021, the words ‘expected’ and ‘labs’ used in same sentence have been very forward looking)
Rumour has it that the CEO tracked a rainbow at the property and suggested to have a drill collar located at the end. The VP Exploration said that they will use geological information to dictate the program, not meteorological although it may very well be a positive sign.
Golden Sky has had a very productive 2021. In September, the company reported a discovery hole in their inaugural RC drill program at their Bullseye Property. Discovery Hole BERC-21-4 intersected significant gold mineralization that assayed 1.03 g/t Au over 80.77m from near surface. They look forward to follow up with a Diamond Drill program in 2022. The Bullseye project is contiguous to K2 Gold Corp's Wels gold project in the Canadian Yukon.
In addition, two new projects were added to Golden Sky’s repertoire. Eagle Mountain, an orogenic style gold property on trend with Cassiar Gold’s flagship namesake property in Northern BC and Rayfield, which checks all the boxes for a potential Copper-Gold Porphyry in Central BC. Both projects have seen Airborne Surveys, Geochem, mapping & sampling this past summer and are currently awaiting drill permits from BC Ministry of Mines for targets to be drilled in the upcoming Spring & Summer. At the end of all exploration work completed in 2021, the company is well financed moving forward with approx. $3.5m Cad in the treasury.
One might assume that with further success at Hotspot and / or Bullseye that the company could be in a position to spin out, option out or in some way monetize the non priority projects and concentrate on the more advanced projects. John Newell appears to be committed to building shareholder value, measured not in decades, but in a few years, As Nova Gold did from 2001- 2007, Rainy River did from 2007-2012, and Great Bear did from 2015 to the Present.
Some of the company highlights that draws me to Golden Sky are the share structures and insider ownership costs, as it's not just about quantity. Golden Sky Minerals has 19.25m share outstanding currently. CEO John Newell owns 683k (3.5%) shares with a cost average of .402c per share with continual purchases in the open market. John Newell was appointed to Golden Sky in Nov 2019 and was not afforded the luxury of seed/founder shares. After I have witnessed some questionable acquisition terms over the last couple of years, I prefer to stand behind management who shares my cost average. Not those making 2500% returns from cheap shares benefiting only themselves while leaving retail investors high and dry.
Under John Newell’s leadership, the company has seen a 240% increase in share price. Following his appointment, the company completed a 10-1 consolidation which increased the average of all previous issued shares to .91c. Since Nov 2019, the company has completed 3 financings, each at a higher price than the previous which is a goal for management moving forward and one that I like to see as a retail investor. Crescat Capital became a shareholder in the last financing and holds a 7.6% position in the company. John has spent near 40 years in the investment industry and has raised over $500 Million in capital for exploration teams and producers. Well connected and well managed and I see Golden Sky financed for years to come.
Cameron Dorsey B.Sc. Geology, M.Sc. (Structural Geology) is the VP Exploration and has worked in the industry for almost a decade. If the Dorsey name sounds familiar, his identical twin brother Malcolm is a Sr Geologist with Benchmark Metals. Must have been tough for their mother raising those teenage boys, always finding pictures of core under their mattresses. That isn’t the sole connection to Benchmark Metals as Director Ewan Webster is also a Sr Geologist as well President, Chief Executive Officer & Director at Thesis Gold.
The company has 19.25m shares outstanding with a $10m market cap and is currently averaging 44.5k share volume ($22.2k value) per day across the TSXv & ATS exchanges. The 200 day moving average is .44c and the 200 day vwap is .494c on 5.57m share volume. The hold period for last financing comes off Nov 20. This included .42c NFT and .52c FT shares. 2 Institutions participated in this financing which included Crescat Capital and ‘Cordillera Minerals 2021 Flow-Through Limited Partnership’.
Disclosure: The author of this article owns AUEN.V shares at the time of publishing and may choose to buy at his leisure or sell, which would be highly unlikely, at any time without notice. The Author has been NOT been compensated by Golden Sky Minerals to complete this article. This article is for information basis only, it is not a recommendation to buy or sell.
