• Mon. Jan 24th, 2022
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OnTheBids.com Deep Dive: Great Thunder Gold Corp. (CSE: GTG) (OTC: GTGFF)

During the last year, several leading investment firms and hedge funds have become more bullish on the precious metals market as governments across the globe continue to print trillion of dollars to combat the spread of COVID and support their respective economies.

The constant money printing has served as a catalyst for gold and silver as inflation fears have become more pronounced. After US Federal Reserve Chairman Jerome Powell reported to be less concerned about managing inflation, we believe that the precious metals market is reaching an inflection point and we have focused on the companies that are levered to this opportunity.

Over the next year, we expect to see inflation continue to tick higher as a result of the massive stimulus packages that have been approved by some of the world’s largest economies. Following our analysis, we have become increasingly bullish on companies that are levered to the precious metals market. 

Great Thunder Gold Corp. (CSE: GTG) (OTC: GTGFF) (FSE: M4KQ-FF) is a junior Canadian mining company that we are excited about and are following. The company is focused on exploration and development in the Fenelon Gold district in the Detour Gold trend and is the second largest mineral claim holder in the region. Great Thunder owns assets that are located near the region’s largest mineral claim holder, Wallbridge Mining (which recently merged with Balmoral Resources), and we are favorable on the location of its assets.

Great Thunder Thesis

Great Thunder is in the process of developing a 15,000+ hectare property in the Detour Lake District in the Fenelon Gold Camp in Quebec. The company possesses the traits that we look for in a Canadian junior miner and we are excited about the opportunity for the following reasons:

  1. The company owns assets in the Detour Gold district of Quebec and has a first mover advantage on a massive land package in the region
  2. Great Thunder has substantial potential catalysts for growth and owns a diversified portfolio of projects that are predominantly focused on gold (currently developing five projects in Quebec)
  3. Through strategic partnerships, Great Thunder has enhanced its growth profile and we expect the relationships to support long-term growth
  4. The balance sheet is much stronger after the company completed two private placements. Great Thunder received an investment from Eric Sprott (owns more than 15% of the company) and we consider him to be smart money
  5. We find the valuation to be attractive at current levels and believe that Great Thunder has significant upside potential 

Great Thunder is an Execution Story in the Making

Great Thunder Gold is executing on a strategy that is focused on exploration and development along the Detour Gold trend in Quebec and believe that it has significant potential catalysts for growth. Earlier this year, Great Thunder reported to have signed an option for the Northbound gold property that is contiguous and adjacent to Wallbridge Mining’s Fenelon property. The property is 1,162 hectares and has five drill rigs onsite (four of which are focused on expanding the footprint of the Fenelon gold systems.

Less than one month after signing the option for the Northbound gold property, Great Thunder reported to have expanded its land position that is near the Fenelon deposit and acquired an additional 1,582 hectares. The acquisition is referred to as the Northbound Extension property and we are favorable on the location of the asset.

The Northbound Extension property shares a border with the Northbound extension and brings the size of the total land position to 2,744 hectares. The day before the acquisition was announced, Wallbridge Mining and Balmoral Resources reported to have combined the two businesses. This shows that there is additional interest in the region, and we are favorable on the leverage that Great Thunder has to it.

Another attractive asset that is owned by Great Thunder is the Jeremie Pluton Contact and we believe that it could prove to be a major value driver for the business. Last year, Wallbridge’s exploration program tested a 4-kilometer strike of the Jeremie Pluton Contact and reported positive drilling results.

In 2019, Wallbridge drilled 75,000 meters and plans to continue at this pace. We believe that Great Thunder is well positioned to capitalize on the property and we are favorable on the amount of activity that is taking place in the region. Two of the drills that were tested by Wallbridge in the western extent of Fenelon Gold System resulted in 83.18 g/t Au over 0.51m and 5.05 g/t Au over 1.96m, respectively. The results highlight the potential to discover mineralization at the Jeremie Pluton Contact on the Fenelon Gold Property.

Wallbridge’s initial drills targeted a structural-geophysical target in the Jeremy Pluton Contact and the data support the idea that Jeremie Pluton is a high-quality exploration target and we are favorable on how Great Thunder is positioned. Wallbridge also found similar anomalous gold mineralization in holes that are located east of the Main Gabbro Zones and this raises our level of conviction as it relates to Great Thunder’s growth prospects in the region

A few months ago, Great Thunder acquired an additional 7,689 hectares that are located near the Fenelon deposit and are known as the Southern Star property. The acquisition increases the size of the company’s land package to more than 10,000 hectares, making them one of the largest mineral claim landholders in the region.

Shortly after the acquisition, Balmoral announced a gold discovery in the region at a shallow depth and this raises our confidence in Great Thunder’s potential. The discovery highlights the potential for operators in the region and we are favorable on how it can benefit the company. After Balmoral announced the finding, Great Thunder reported to have commenced Phase 1 of an exploration program that consists of a systemic approach with VTEM airborne geophysics, ground geological sampling, and mapping on all three projects in the region.

Issues Update after Completing an Airborne Survey

In July, Great Thunder issued an update following the completion of an airborne survey at its Northbound, Northbound Extension & the Southern Star, Southern Star Extension projects. The surveys were strategically targeted to detect anomalies and to better define major structures in the region. The airborne survey did not include the contributed claims from CEO Blair Naughty, and we are favorable on the amount of value that can be generated from these projects.

Following the completion of the surveys, the geophysical data was sent to Joël Dubé, P. Eng., a geophysics specialist with Dynamic Discovery Geoscience Ltd., to be analyzed and interpreted. In the near future, Great Thunder plans to release a detailed target characteristic report and expect positive data to serve as a catalyst for the business.

The size and scope of the projects are impressive, and we are favorable on the initial data that was provided. For the Northbound and Northbound Extension, Great Thunder used an airborne magnetic to target magnetic responsive structures representing shear zones with quartz. For the Southern Star and the Southern Star Extension project, an airborne magnetic and electromagnetic survey was used to determine that the properties may be covered with heavy overburden due to the location being within volcanic rocks.

In the near future, we expect to see Great Thunder report further developments as it relates to the properties. The company’s geologist, Donald Théberge, P.Eng., M.B.A., has already been dispatched to the project to prepare to mobilize a geological team. Going forward, Théberge and his team will work to define the potential geophysical anomalies on the ground. This will be followed up by his team conducting ground geophysical survey and drilling and we are favorable on the visibility that is associated with the project.

CEO Sells Six Resource Claims to Great Thunder for $1

One of the most significant developments for Great Thunder this year was the appointment of Blair Naughty as CEO in June. His appointment made an immediate impact on the business and we consider him to be a major value add to the company. Shortly after being appointed as CEO, Blair sold 6 additional claims (that cover 331.79 hectares) to Great Thunder for $1. He owned these assets prior to Great Thunder acquiring land that bordered these claims. 

Through this acquisition, Great Thunder was able to expand its 100%-owned Northbound & Northbound Extension Properties and we are bullish on how this transformed the business. Going forward, we expect the six land packages to serve as a growth driver for Great Thunder and will monitor how the story evolves from here.

The claims that Blair sold to Great Thunder are similar to the Northbound and Northbound Extension properties and are underlain by the Jeremie Pluton. The claims cover the folded granodiorite immediately adjacent to greenstone and increase Great Thunder’s land positioning to more than 15,000 hectares. The acquisition enhances the company’s growth prospects in the region and we will monitor how the assets help the business.

Focused on Strengthening the Balance Sheet

From a capital standpoint, we believe that Great Thunder is well positioned to execute on a series of major growth projects, and we are favorable on how the management team has put a major emphasis on strengthening the balance sheet.

Great Thunder initially announced a $2.6 million non-brokered private placement that included a strategic investment from Eric Sprott. The private placement was oversubscribed, and the company increased the size of the raise to $3.1 million. We believe that the investment from Eric Sprott is significant as Great Thunder has been able to secure what we like to refer to as smart money. The company plans to use the net proceeds to develop its properties in the Fenelon Gold Camp of Quebec and for general working capital purposes.

A few weeks ago, Great Thunder reported to have completed a previously announced non-brokered private placement of 600,000 flow-through shares for $1.00 each. The company plans to use the proceeds to fund exploration of its Northbound, Southern Star and other properties in the Fenelon Gold Camp of Quebec.

We are favorable on the management team’s focus on raising capital from strategic investors like Eric Sprott and consider it to be a vote of confidence in the operation. Over the next year, we expect to see Great Thunder raise additional capital as it continues to execute on major growth initiatives’ and will monitor how the story evolves from here.

Led by a Proven Management Team and Backed by Smart Money

When analyzing any company, we conduct substantial due diligence on the management team to better understand the entire operation. We believe that Great Thunder is led by a management team that has a proven track record and consider this to be an important pillar of the story.

Blair made an immediate impact on Great Thunder and we expect him to play a key role in the advancement of the operation. Blair will have a significant impact on the business and we are favorable on the experience that he brings to the team. Blair has significant experience in a variety of industries and has had a lifelong passion for mining exploration. We are favorable on the direction that he is bringing the business and believe that he is the right person to be leading the operation.

Blair and Eric Sprott are the largest shareholders of Great Thunder and we believe that our readers need to be aware of this. Both are considered to be smart money and have been bullish on the Fenelon Gold Camp since the early findings on the property. When the CEO is one of the largest shareholders in a company, we believe that it is a positive sign for the business and are favorable on the structure of Great Thunder.

Another key member of the Great Thunder team is David Michaud who serves as a director. With more than 30 years of experience with a focus on the processing, metallurgy & production development within the mining sector, he adds important expertise and has developed a wealth of knowledge and understanding of different deposit types, as well as relationships in the industry. We believe that David’s network will play an important role in how Great Thunder is able to expand and are favorable on his addition to the team.

A Growth Story to be Aware of

Great Thunder represents an attractive growth opportunity and we are favorable on the work that has been accomplished on the properties that it owns. The company has a strong balance sheet and is well positioned to execute on a series of growth initiatives that could lead to massive discoveries and we believe that the business has a favorable risk-reward profile.

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Pursuant to an agreement between StoneBridge Partners LLC and Great Thunder Gold (GTG) we have been hired for a period of 180 days beginning September 1st, 2020 and ending March 1st, 2020 to publicly disseminate information about (GTG) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (GTG) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (GTG), which we purchased in the open market. We plan to sell the “ZERO” shares of (GTG) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (GTG) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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