• Fri. Oct 22nd, 2021
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Trillium Gold Mines Could Be Sitting On The Next Big Discovery In The Red Lake Camp

Trillium Gold Mines (TSX.V:TGM | OTCQX:TGLDF) is a Canadian gold mining operation that has been executing at a high level and is an opportunity to be aware of.

The Canadian gold miner is one of the largest landowners in a region that has been the site of some of the largest gold discoveries in the world. Trillium Gold is in the early innings of a major growth cycle and we are impressed with how the management team has been able to drive the story forward.

The land that is owned by Trillium Gold is located in the Red Lake Camp, a district known for the discovery of high-grade gold mineralization. The company has only recently commenced a multi-faceted drilling program that is focused on properties that are located near or next to the site of a large gold discovery. The company believes that the land sits on top of mineralized veins that contain precious metals like gold and we are bullish on the potential value that is associated with its land package.

Trillium Gold is led by a management team that seems to have the necessary traits that needed to be successful in the gold mining market and we are favorable on the diversity of the team. Going forward, we believe the company has attractive near and long-term growth catalysts. We are favorable on how the management de-risked the business by making strategic acquisitions and will monitor how the story continues to advance.

An Undervalued Growth Story

During the last 75 years, there has been more than 25 million ounces of gold has been brought out of Red Lake. Recent data reported by operators in the region lead us to believe that there is more resources located beneath the surface. Advancements in technology should make it easier for operators to identify regions that could be rich in resources. We are favorable on how Trillium Gold’s has incorporated state-of-the-art mining technology and believe that this has de-risked the opportunity.

Back in 2013, when gold was between $1300 and $1500, Trillium Gold (as Confederation Minerals) owned 50% of its flagship asset, Newman Todd, and was valued at $100 million (CAD). We consider this to be an important data point because. Currently, with gold at $1900 today, Trillium Gold owns 83.5% of Newman Todd and the holding could be worth approx. $167 million if it was being based on the 2013 valuation. Trillium Gold also owns, or has interest in, 7 more properties in the Red Lake area.

Based on the location of the properties that are owned by Trillium Gold, we believe that the management team has been executing on a bolt-on acquisition strategy that is expected to be accretive to the business. The properties that we are most excited about are the Newman Todd, the Gold Centre, and the Leo.

At current levels, we believe the market is discounting the growth prospects associated with the properties that are owned by Trillium Gold. Another property we are bullish on is the Gold Centre. Like the Newman Todd property, the Gold Centre is strategically located near the site of a major gold discovery.

As far as we know, there has been minimal drilling activity in the region and believe that Trillium Gold’s property could be sitting on a gold mine (pun intended). After the recent capital raise, we believe that the company has the resources that are needed to determine the potential value that is associated with the Gold Centre and are bullish on this. If Trillium Gold can prove there is value associated with the Gold Center, we expect the market to respond favorably and consider this to be an attractive aspect of the story.

Executing on a De-Risked Growth Strategy

Data on operators that own land near these properties have been favorable and we believe that it has de-risked the opportunity for Trillium Gold. Ove the next year, we expect the company to report important data points on several high-profile mines and believe that the market is discounting the potential that is associated with a finding.

Trillium Gold has been able to strengthen its balance sheet through an oversubscribed private placement and has the resources that are necessary to execute on key growth initiatives. By executing on a bolt-on acquisition strategy, the company has become one of the largest land owners in the Red Lake Camp and we are favorable on the risk-reward profile that is associated with the business.

During the last few months, precious metals have been trending to the upside and this is a trend that we expect to continue. With gold trading near $2,000 per ounce, Trillium Gold is levered to a market that is expected to be an area of strength in a potentially uncertain time period from a political standpoint. 

If you are interested in learning more about Trillium Gold, please email support@onthebids.com with the subject “Trillium Gold” to be added to our distribution list.

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Pursuant to an agreement between StoneBridge Partners LLC and Trillium Gold Mines (TGM) we have been hired for a period of 180 days beginning September 21st, 2020 and ending March 21st, 2020 to publicly disseminate information about (TGM) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (TGM) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (TGM), which we purchased in the open market. We plan to sell the “ZERO” shares of (TGM) 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 (TGM) 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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