Thesis Gold Inc. (TAU:TSX) announced it has filed a National Instrument 43-101 technical report for the updated mineral resource estimate (MRE) for its newly combined 100%-owned Lawyers-Ranch project in the Toodoggone Mining District of Northern British Columbia.
The new resource outlined a combined Measured and Indicated resource of 4.0 million ounces (Moz) and an Inferred resource of 727 thousand ounces at respective grades of 1.51 and 1.82 grams per tonne (g/t) gold equivalent (Au Eq).
The company said the Measured and Indicated resource represented more than 85% of the total MRE ounces and a 27% increase in Au Eq. The Inferred totals indicated an increase of 76% in Au Eq ounces.
The total tonnage included 94.4 million tonnes (Mt) at 1.55 g/t Au Eq, a 32% increase, the company said.
"We're on track, with a 32% increase in gold equivalent ounces, identification of higher-grade zones, and a revised mine plan that positions the project to deliver substantial improvements on already strong economics," President and Chief Executive Officer Ewan Webster said. "We foresee this materializing in a significant underground potentially mineable Mineral Resource."
Leede Jones Gable analyst Ron Stewart initiated coverage on Thesis shortly after the expanded MRE was announced with a Buy rating and a February 2025 price target of CA$2.30 per share, according to a research report published on May 9.
Webster said the resource growth was "just the beginning, with substantial growth ahead, particularly at Ranch, where we have only scratched the surface."
Leede Jones Gable analyst Ron Stewart initiated coverage on Thesis shortly after the expanded MRE was announced with a Buy rating and a February 2025 price target of CA$2.30 per share, according to a research report published on May 9.
The analyst said he believes that Thesis offers investors the opportunity for superior returns over the next few years as the company advances on the path to production.
"Thesis was formed through a business combination that brought together the multi-million-ounce Lawyers project and contiguous Ranch exploration project in north-central BC," Stewart noted. "The company is focused on advancing the exploration, engineering, and metallurgical test work on the combined project to create a new, intermediate gold producer."
All Zones Open for Expansion
The MRE outlines both pit-constrained resources, defined by a conceptual pit at a cut-off grade of 0.4 g/t Au Eq and out-of-pit Mineral Resources that have a cut-off grade of 1.5 g/t Au Eq, demonstrating continuity, Thesis said.
At an 80:1 Ag:Au ratio, silver represents 25% of the mineral resource value for Au Eq, the company also noted.
Measured and Indicated mineral resources contained 84 Moz silver (Ag) ounces, and Inferred mineral resources contained 8.3 Moz Ag, an increase of 58% and 34%, respectively.
In 2023, the drilling program at Ranch was strategically aimed at defining near-surface, high-grade zones, the company said. This focus was specifically designed to maximize the impact on the upcoming Preliminary Economic Assessment (PEA) update in the third quarter of this year and to establish an initial Mineral Resource.
"All zones remain open for significant expansion potential," Thesis said in a release. "Ranch has >20 (more than 20) drill-ready targets for potential new discoveries and multiple additional gold-silver mineralization targets generated for follow-up."
Stewart, the analyst, also noted the possibility of growing the resources at the project.
"Despite the significant resource already identified, we believe the 325km2 property offers excellent exploration potential for additional high-quality resources," Stewart commented.
The analyst identified several key catalysts for Thesis, including additional metallurgical test results expected in the current quarter, the updated PEA, and the announcement of the 2024 exploration program by the end of the quarter.
The firm's Buy rating and target price of CA$2.30 per share represents a potential return of nearly 230% the price at the time of writing this of CA$0.70.
The Catalyst: A Rising Bull Market for Gold?
The price of gold hit a new all-time high of US$2,449.89 per ounce on May 20. Although the price has settled and was at US$2,328.63 on Monday, some analysts are predicting a prolonged and substantial gold bull market.
Analysts at investment bank UBS believe the market is entering a "seasonally quieter period," according to Investing.com, but noted it as an opportunity for gold investors.
"We think any setbacks during this period should offer opportunities to build gold positions," the strategists said.
Adam Rozencwajg, managing partner at Goehring & Rozencwajg, predicted that prices could go as high as US$5,000 to US$7,000 an ounce before it's all over.
Streetwise Ownership Overview*According to Investing.com, "Gold prices have been outperforming across various asset classes and on a macroeconomic level. It is implicitly trading on its reputation as a safe asset with no counterparty risk, rather than the opportunity cost associated with holding a zero-yield asset."
The site said Central Bank buying of the yellow metal is also still tracking above reported levels, suggesting "sustained institutional interest in the precious metal."
Ownership and Share Structure
According to Thesis, about 66% of the company is owned by institutions, and about 4% is owned by insiders. The remaining 30% is retail.
Top shareholders include Franklin Advisers Inc. with 7.82%, Merk Investments LLC with 7.58%, Delbrook Capital Advisors Inc. with 5.5%, Sprott Asset Management LP with 4.63% and Van Eck Associates Corp. with 2.45%. Director Nicholas Stajduhar owns 1.09%.
The company has 175.05 million shares outstanding 168.3 million free float traded shares. Its market cap is CA$118.36 million, and it trades in a 52-week range of CA$1 and CA$0.37.
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