Everton Resources Inc. (TSX-V: EVR, 0.09 cents)
“I have a huge, huge opportunity, I’m way undervalued,” is the way Chairman and Chief Executive Officer, Andre Audet describes the investment opportunity with Everton Resources. “Keep an eye on us, we won’t be undervalued for long.”
Everton Resources is a very promising junior exploration company with prospects in the Dominican Republic and Quebec. The Company provides investors with an exceptional portfolio of active projects, an attractive low valuation, a strong business model, and a good management team.
Shares outstanding: 146 million / Current market capitalization: $13.1 million
Appx. $1,000,000 million working capital, 3.3 million shares of FMS.V, and no debt.
This leaves a $9,800,000 million valuation on the properties and equipment.
Everton looks to be on the rebound after a long downtrend from a high of 45 cents in April 2011. It looks like the share price has found a base around 5 cents, and has gradually been pushing higher since the end of December; recently reaching as high as 9 cents, and closing there today. This is a significant close because the share price has broken through the 200 day moving average of 8 cents. There has been steady accumulation and it has been on increasing volume. The MACD ha s turned upwards and I would look for the share price to test the 10 cent resistance level soon.
Have a look at the aggressive drill program Everton has planned for 2013:
Dominican Republic Projects
Everton is actively exploring in the Dominican Republic, with 9 project areas and 12 concessions. The company’s main target Ampliacion Pueblo Viejo, is directly adjacent to the Monte Negro pit of the Pueblo Viejo deposit where Barrick Gold has partnered with Goldcorp to develop one of the largest resources in the Western Hemisphere, at an estimated capital cost of $3.8 billion. The deposit contains approximately 27 million ounces of gold, 168 million ounces of silver, 6 billion pounds of zinc, 652 million pounds of copper (August 2012). Everton also holds impressive land packages adjacent to Xstrata’s Falcondo nickel mine, and Perilya and Cormidom’s Cerro de Maimon gold-silver-copper mine.
Drilling less than a kilometre away from such a world class mining property can only bode well for Everton. In October, Everton signed an option to acquire 100% the remaining interest in the Ampliacion Pueblo Viejo, La Cueva and Ponton concessions from its former partner Brigus Gold. Exploration work completed in 2011 yielded an initial NI 43-101 compliant inferred mineral resource estimate on La Lechoza (APV North) of 1.22 Mt at 0.57% Cu, 5.03 g/t Ag, and 0.2 g/t Au, and left lots of room to expand the resource.
And it just goes to show that Goldquest Mining initially drilled 15 holes at Las Tres Palmas, and they found their Romero discovery on the 15thhole. The first 14 holes were a lower grade, similar to the grades Everton has got from La Lechoza. There is vast potential in the mineralized belt that runs under the Dominican, and while the APV claim is not on the same rock formation as Goldquest (Upper Tireo), the Company shares the same geology as Pueblo Viejo (Los Ranchos formation).
What is exciting about Everton’s APV South claim in particular is that it is unexplored, virgin ground. Last April, Everton retained Caracle Creek International Consulting to act as Senior Technical Advisor and geological agent for the company’s projects in the Dominican Republic. I mention this because all of the previous drilling was done under the guidance of a different company, and I believe that the experience that Scott Jobin-Bevans and the Caracle Creek team bring, along with their proprietary technology, EarthProbe, are going to be a game changers for Everton. The technology is cutting edge, and will save the Company both time and money, by allowing more thorough planning of its drilling program in order to achieve maximum extraction.
Everton is also exploring in the Opinaca region of James Bay, Quebec where the Company has amassed a large land claim adjacent to Goldcorp’s Eleonore gold deposit, acquired from Virginia Mines for approximately $500 million, where Goldcorp announced a gold resource estimate of 5.31 million ounces of gold in December 2008 (total resource, all categories).
Everton holds an impressive land position with over 699 km² in Quebec and is one of the largest landholders around the Eleonore gold discovery in the Opinaca region.
A three-way agreement between Everton Resources Inc., Azimut Exploration Inc., and Aurizon Mines Ltd (see press release dated Sept. 16, 2010) led to an aggressive 2012 drill program.
Aurizon’s extensive 2012 program consisted of:
- 622 line kilometres of helicopter-borne magnetic-EM survey
- 684 soil samples
- 243 rock grab samples
- 290 rock channel samples from 258.35 metres of channels
- 93 till samples
The main results are the discovery of three significant outcropping targets on the Opinaca B property: the D8, Eric and Penelope prospects. These targets, located along an east-west structure at the boundary between the Opinaca and La Grande geological subprovinces, share geological similarities with the Eleonore deposit.
Aurizon recently informed Azimut it will renew its option for a second year on the Opinaca A and B properties, and is planning a 5,000m diamond drilling program for its 2013 work program.
The Everton Team
Although still a junior company, Everton Resources is making a name for itself by putting together a world class mining team. With Andre Audet at the helm, this should come as no great surprise. With more than 20 years of experience in the financing of public companies, Audet was Vice-President at BMO Nesbitt Burns specializing in private portfolios and mining investments. Andre also served as Chairman of the Board & founder of Majescor Resources Inc. (V.MJX) and Adventure Gold Inc. (V.AGE), as well as being a director of Mazorro Resources Inc. (V.MZO). He was also a director of Pediment Exploration Inc. (formerly V.PEZ, now T.AR) and founder of Focus Metals (now V.FMS).
Serving as Project Manager for operations in the Dominican Republic is Hugo Dominguez, a professional Dominican geologist with over 25 years experience, and immediate past president of the Geological Society of the Dominican Republic.
Also a part of the team is the immediate past President/Director of the Prospectors and Developers Association of Canada (PDAC), Dr. Scott Jobin-Bevans, who serves as Sr. Technical Advisor. Dr. Jobin-Bevans is an exploration geologist with over 24 years experience, and also a director and founding partner of Caracle Creek International Consulting Inc. (whose proprietary geophysical system, EarthProbe, will be used by Everton). [For more info on Caracle Creek and the EarthProbe technology click here].
“Part of investing in exploration companies is in the talent of the management and the integrity of their plan”, says Chairman Audet. “We’ve gathered together the experience and the expertise and coupled it with these exciting property opportunities.”
Last Wednesday, Everton updated shareholders on its recent exploration activities in the Dominican, specifically regarding its Ampliacion Pueblo Viejo property, and Pun-Ponton property.
The 2012 regional exploration program over the Pun-Ponton property included active stream sediments, soils and rock geochemistry, trenching and pit excavation and geological mapping. Several multi-element anomalies were defined on the mineral prospects; Cu-Au-Mo on Majagual Hill, Au-Ag-Cu on Copey Hill and Cu-Zn-Au-Ag on Los Cumanies-Granadillo. Maximum values recorded in rock samples from these areas are 4 g/t Au, 29.8 g/t Ag, 0.63% Cu and 0.67% Zn and anomalous concentrations of Mo (136 ppm) and Pb (0.12%). Four trenches and one hand-dug pit have been excavated on the Majagual Hill target on the site of the best gold and copper values in soils. The pit averaged 0.3 g/t Au over 15 m and a maximum value of 1.7 g/t over a 1 m interval. Everton plans to follow up on these results with extensions of these trenches, a deep penetration ground IP survey and eventually with an exploration drilling program, once the required environmental permits are obtained.
During November and December 2012 Everton carried out a detailed sampling and mapping survey in the southern sector of the Ampliacion Pueblo Viejo project, adjacent to the Monte Negro pit of the Pueblo Viejo mine. A total of 140 auger soils and rock samples were collected and are now being assayed and analyzed. Everton plans to follow up on these results with a close spaced diamond drilling program and a deep penetration ground IP survey aimed to locating and defining any possible structurally controlled mineralization in this sector.
Yesterday, the Company appointed Salvador Brouwer to its Board of Directors. Mr. Brouwer is one of the most experienced exploration and mining geologists of the Dominican Republic, with a successful record in discoveries in volcanogenic massive sulphides, precious metal epithermals and porphyries. Mr. Brouwer spent 30 years working for Falconbridge in Canada and the Americas. He was also part of the team that resulted in the discovery of Cerro de Maimon, currently under exploitation by Perilya, and several other discoveries, such as Loma Pesada, Cerro Kiosco and Dona Amanda y Anomalia B.
Andre Audet, said, “Salvador’s knowledge and successful track record of discoveries in the Dominican Republic will help fast-track Everton towards discovering new mineral resources.”
So Why Everton?
- Everton has now acquired the remaining interest in the Ampliacion Pueblo Viejo, La Cueva and Pun-Ponton and can move ahead to drill on multiple targets.
- The Caracle Creek team is working diligently; Scott Jobin-Bevans, “All of the fundamentals have been done and we believe we are at the stage where discoveries are just around the corner.”
- Everton has enough cash on hand to get through its aggressive 2013 drill program without the need for additional financing.
- The concessions owned by the company in both the Dominican Republic and Quebec are positioned around some of the largest gold deposits in the western hemisphere.
- Mining friendly jurisdiction.
- Strong news flow and upcoming catalysts.