Ashley Gold Corp’s main project is the Burnhood project near Dryden in northwestern Ontario, right next door to Nex Gold’s Goliath complex. The company also holds two smaller assets, Alto Gardener and Howie. The conversation covers recent drill results, how the company is financed, insider ownership, permitting, and what’s coming next.

TL;DR

Ashley just wrapped up a phase 2 drill program at Burnhood (about 500 metres over four holes) and got their best hit yet, 28 metres of 1.1 g/t gold from surface, plus a high-grade zone up north that returned a very strong grab sample result they’re still chasing. Assays for the latest holes are pending, expected on a rolling basis over the next several weeks. The company just closed a small, oversubscribed flow-through financing (about $500,000) and has additional cash coming later this year from asset sales. Noah, the President, holds close to 20% of the company personally and didn’t participate in the last raise because he’s near an ownership cap.

What have they done for shareholders lately?

The company finished its first ever drill program at Burnhood, confirming gold mineralization that lines up with old historical holes on the property. A second, four-hole program just wrapped up in early June, including a step-out hole between two known zones and holes testing a new high-grade zone up north. Their best result was 28 metres running 1.1 g/t gold from surface, close to a historic hole that hit 30 metres of 2 g/t. They also picked up a chargeability anomaly up north that returned a very high grade sample (398 g/t), though Noah was careful to say this still needs assay confirmation before drawing conclusions. Outside of drilling, the company divested two non-core assets during the period (a project called Taber Sakwe and an icefield project) in exchange for cash and equity to be received over time, and only started actively marketing itself this month after not doing so previously.

How much money do they have and what are they spending it on?

Ashley closed a flow-through financing at the end of June, raising about $500,000 with no warrants attached; Noah said it was oversubscribed and they could have raised more. He estimated a 500-metre drill program costs roughly $150,000 all-in (assays, core cutting, logging), and said they plan to keep running programs around that size, funded mostly through equity for now rather than a joint venture partner. General and administrative costs run about $300,000 to $400,000 a year, which Noah described as low; his own salary is $60,000 a year and the CEO’s is $30,000. Beyond the market, the company is expecting $300,000 in equity from an asset sale to unlock in October, and $1.475 million in cash and equity from the icefield project sale, some of which is tied to milestones. There are 33 million warrants outstanding, about 26% of the fully diluted share count.

Upcoming catalysts

Technical: assays from the four holes drilled in phase 2, including the first hole from the northern high-grade zone, expected on a rolling basis roughly every three weeks depending on lab turnaround (two to five weeks per batch); an additional 30 surface samples pending along strike of the high-grade find; a planned next drill phase stepping out 50 metres on either side of one of the known zones, working toward defining an inferred resource.

Operational: possible return to the field in winter to complete an induced polarization survey, pending a permit for the area extending onto adjacent mining claims.

Corporate: ongoing capital raises expected to fund further drilling; potential cash inflows in October from a prior asset sale; a new marketing engagement starting in July for a three-month term.

Risks

The main risks Noah pointed to are execution pace and dilution, since the company is small and needs to keep raising money to keep drilling without slowing down. Gold market sentiment has been volatile and previously made financing harder. There’s also a technical risk around the nugget effect in the high-grade zone, meaning grades could vary a lot between samples, which Noah said they’ll monitor once assays come back. One of the two First Nations groups closest to the project hasn’t been directly engaged yet, which Noah acknowledged as a general permitting risk in Canada, though he didn’t see it as likely to block work.

Ashley Gold CEO Interview

VERY IMPORTANT WARNING

Please note that this company has not paid Resource Talks for the creation of this content. This website is a business that charges for the creation and publication of content. This means there will always be a potential conflict of interest which means you can never rely on anything said herein.

By consuming this content, you acknowledge that Resource Talks and/or its affiliates and/or their personnel may own, have owned, or will own interests in and/or may have a business relationship with some or all companies/entities mentioned/featured in this publication. You further acknowledge that entities which may be referenced or featured in this publication or their related parties may hold an interest in Resource Talks or its affiliates, which may create further conflict of interest.

The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.