Issue link: http://resourceworld.uberflip.com/i/1099276
26 www.resourceworld.com A P R I L / M A Y 2 0 1 9 S uccess in the resource sector comes down to good timing. I believe that companies that have the greatest success are often those that have worked tenaciously towards providing the market with a great story at the right time. I believe that TerraX Minerals [TSR- TSXV; TRXXF-OTC] is one of those companies. TerraX controls 70 km of strike length along the main mineralized break (or structural zone) in the pro - lific Yellowknife greenstone belt in the Northwest Territories. It is well known that many gold deposits in greenstone belts are associated with large, deep- seated, structural zones. Through its Yellowknife City Gold (YCG) Project, TerraX holds 783 km 2 of contiguous land along this gold-bearing structure immediately north south and east of the City of Yellowknife in the Northwest Territories. The property also covers the southern and northern extensions of the shear systems that hosted the high-grade Con and Giant gold mines. Together these mines produced 14.2 million ounces of gold average 16 g/t gold. It may be a bit of a cliché, but the saying that the best place to look for a new mine is in the shadow of an old one, still rings true. Another attractive aspect of the YCG Project that should not be overlooked is that it lies within 10 km of the mining friendly City of Yellowknife and, therefore, is close to vital infrastructure, including all-season roads, air transportation, ser - vice providers, hydro-electric power and skilled trades-people. I've seen many qual- ity projects get economically stranded due to a lack of infrastructure. This is not the case with TerraX. The company has worked diligently over the years to define and prioritize numer - ous exciting targets on its extensive YCG property. By combining data from historic and recent drill samples, surface samples, biogeochemistry, lake sediment sampling, airborne and ground magnetics as well as extensive geological and structural map - ping, TerraX has identified four promising high priority targets all within 5 km of each other. The company dubbed these targets the Barney Deformation Corridor, Sam Otto, Crestaurum and Homer. All of these targets have been drill tested to varying degrees and have returned impressive assay results and all remain open for expansion. For example, drilling at the Crestaurum target has returned high grades of 62.90 g/t gold over 5 metres and 20.66 g/t gold over 5 metres. The Barney Deformation Corridor target is a 5-km long structure that hosts high-grade gold in a wide zone of sheared rocks. Drilling at the Sam Otto target suggests the potential for both high-grade gold as well as bulk tonnage style of gold miner - alization. The Homer target is both a gold and VMS target. One intersection at Homer cut 3.42 metres averaging 3.41 g/t gold, 69.3 g/t silver, 3.67% lead and 3.17% zinc. These targets are all associated with anastomosing (braided) shear structures that trend northwards from the same structure that hosts the past produc - ing Con and Giant Mines. Recently the company has acquired 16,000 metres of historic core from the Giant Mine that was drilled along this deformation corridor back in the 1960s. TerraX is in the pro - cess of re-assaying about 10% of this core in an effort to better define the controls of gold mineralization. TerraX has itself drilled over 50,000 metres on its extensive property and it is now at a stage where it can cherry-pick the most promising tar - gets and focus its attention on developing meaningful resources that will attract the majors. With 124 million shares outstand- ing, $1 million in its till, and a market capitalization of just $50 million, I believe this company is on the verge of revealing its true value to the market. n Tony Frakes is an Investment Advisor with Mackie Research Capital Corporation (MRCC). This article was prepared, in part, under contract by Thomas Schuster. The opinions, estimates and projections herein are those of the author and may not reflect that of MRCC. The information and opin - ions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) men - tioned in this article may not be suitable for all investors. Please consult an investment professional for advice regarding your par- ticular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. The information contained in this article is not intended to constitute a research report. Tony Frakes is a beneficial owner of the companies highlighted in this article. Broker's Picks by Tony Frakes TerraX Minerals — Revealing value in a gold district www.resourceworld.com