Aurvista Gold Corporation Currently at 3 Million oz Gold (all categories) with Potential for 5 - 10 Million oz
TSX - Toronto Stock Exchange
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New York, NY / ACCESSWIRE / November 17, 2014 / Aurvista Gold Corporation (TSX VENTURE:AVA) (Pink Sheets:ARVSF) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors as Aurvista has one of the largest undeveloped gold projects in North America with ~3 million ounces Gold (in all categories) at its Douay Gold Project located along the Casa Berardi Fault, in the prolific Abitibi greenstone belt of northern Quebec. It's Douay Gold Project is comparable in potential to rival nearby Malartic (10.8M oz) gold deposit & Detour Gold (15.6M oz) deposit. AVA.V's management team is executing on a plan to target, generate, and develop 5 to 10 million ounces Gold -- advanced enough to pique the interest of large miners/players.
The (2012) resource estimate at the Douay Gold Project (0.3 g/t cut-off) is: 238,433 oz gold Measured & Indicated (2,689,000 tonnes @ 2.76 g/T) 2,754,554 oz gold Inferred(114,652,000 tonnes @ 0.75 g/T)
The intrinsic value of AVA.V relative to its current market capitalization (~$6 million) appears disproportionate and presents exceptional opportunity for investors establishing a long position; shares of AVA.V are poised for upside revaluation as the inherent value and accomplishments are appreciated by the market, and apt to respond in multiples as gold retrenches and strengthens.
The full Mining Journal review may be found athttp://miningmarketwatch.net/ava.htmonline.
To date the Douay Deposit has received 657 drill holes, totaling 186,000 m, over a ~5km corridor, including 12,801 m in 2012 by Aurvista after acquiring the property in 2011 and capitalizing the Company.
Multiple high-grade zones:A big advantage that Aurvista's Douay Gold Deposit has compared to major low-grade high-tonnage area deposits, such as Malartic and Detour, is that Douay has multiple high-grade zones. AVA.V has identified 7 high-grade zones to date throughout the 5 km corridor, so far identifying ~300K ounces in the high-grade model. There is no history of mining on the Douay project, all high-grade remains intact.
Upcoming PEA to focus on mining Douay West zone: The most advanced section of its deposit is the Douay West zone hosting high-grade veins and shears, it contains anywhere from ~4 - 30 g/t of gold and the averages depending on the cut-off varies from say 4 to 8 g/t gold and currently appears to have ~150,000 ounces of gold hosted in potentially recoverable material -- a great starter for a scalable mining operation (open-pit, underground, or combined); the upcoming PEA, expected to be released Q1-2015, will provide an assessment of the economics and offer orientation as to where to focus. There appears excellent potential for an initial ~600 TPD open-pit operation, transitioning to underground mining. The Company has surface camp infrastructure in-place. There is no on-site milling discussed yet, however AVA.V has the option of transporting its concentrate to several nearby mills.
Like other deposits across the Abitibi greenstone belt (an area which has seen over 200 million ounces of gold production history) Douay is a structurally hosted deposit. It has unique anastomosing mineralized corridors of high-grade vein type zones tied-together with disseminated gold. The high-grade zones tend, up to now, to boarder the porphyries, however the high-grade zones themselves are composed of high-grade sub-zones (e.g. four sub-zones on the Douay West section) that are likely tied together with material that carries. Definition drilling in the current phase of drilling will better reveal the links that will aid in mining it all effectively.
10M+ oz gold potential: Well on its way, Aurvista is aiming to discover and develop 5-10 million ounces gold; potentially 500,000 to 1,000,000 ounces in higher-grade ≥ 6 g/T, and 4,500,000 to 9,000,000 ounces in lower-grade ≤ 1.5 g/T. Currently the bulk of the Douay resource is with the disseminated low-grade model (0.3 - 2 g/t, but generally under 1 g/t) in the inferred category (2.75 million ounces gold Inferred (114,652,000 tonnes @ 0.75 g/t)). The main porphyry trend runs the distance of the 5km east-west corridor and appears to have the potential for a possible super-pit. Aurvista's CEO & President, Jean Lafleur M.Sc., P.Geo., was involved in the early exploration days with what is now Yamana and Agnico Eagle Mines' Canadian Malartic property (formerly owned by Osisko), prior to Osisko acquiring it (early shareholders and stakeholders in Osisko have seen >4,000% rate of return since 2004) -- Mr. Lafleur intimately understands the type of deposit being advanced at Douay and its comparable potential; in 2012 Mr. Lafleur took point for AVA.V on two drill campaigns across the 5km corridor of Douay and encountered substantial disseminated gold, drilling occasionally down to 150 m, no deeper than 400 m, with most above 300 m. There is a second porphyry that runs N-S that was successfully tested and can be followed up on later to add ounces in that direction. The Douay Property covers 20 km strike length of the Casa Berardi South fault yet only ~5 km has been adequate tested, in part. A combination of several models will be employed in maximizing the deposit going forward; Aurvista has identified at least 8 metallogenic styles for gold mineralization, each could potentially host multi-million ounces, 2 have been tested to date on a budget and that delivered 3 million ounces.
Shares outstanding:69,511,617 (fully diluted: ~$85M, however all options and warrants are well out-of-the-money with majority expiring in early spring-2015), market cap: ~$6 million. The recent trading price near C$0.07 is symptomatic of the out-of-favor market climate for mining equities, it presents tremendous opportunity for investors looking for an insurance-position in precious metals as AVA.V has serious intrinsic value established (3 million ounces gold to date), and will be adding value as it executes on its plan to become the next major gold mine in Canada. Ownership-wise (as of November-2014) ~62% of AVA.V shares are well controlled; insiders, associates, and corporate entities that appear in for the end-prize; 30% Vior Inc., 12% Norvista, 7% Management/Directors, 7% CDPQ/SODEMEX, 6% Montreal Investment Group.
Aurvista maintains a strong cash balance, as of early November-2014 it had ~$2 million cash on hand (from its original 2011 capitalization and ~$800K from exploration tax credits). The company remained relatively quiet from 2012 (after releasing its updated resource estimate) until mid-2014 as it was evaluating a deteriorating market climate and the impact on majors its Douay Project is modeled after. AVA.V is now proceeding, taking advantage of large cost savings on services in an out-of-favor market for mining equities. AVA.V is capitalized to handle planned activities through to Spring-2015. Naturally it will be looking to replenishing that $2 million, it's advisable serious money think about getting involved with Aurvista sooner, rather than later.
Activities currently underway:1) a complete PEA surrounding the viability of West zone open-pit and/or underground production targeting 150,000 oz gold, 2) engineering, environmental, geotechnical surveys, 2) model evaluation, and 3) drilling (~5,000 m to look at depth, potential, boarders of mineralization, and some definition drilling). At the Douay West zone high-grade gold comes right up to the overburden, which varies between 10 m to 45 m. There is quality material very close to surface. Right now Aurvista is doing some drilling to look at overburden characteristics in that area, and it is also doing some drilling to see if the ore near surface links up with the slightly deeper zones -- if they linkup it makes this a lot more feasible to mine in connection.
The full Mining Journal review may be found athttp://miningmarketwatch.net/ava.htmonline.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
Contact information: James O'Rourke, EIC Mining MarketWatch Journal editor@miningmarketwatch.net
SOURCE:Aurvista Gold Corporation