Issue link: http://resourceworld.uberflip.com/i/1207716
F E B R U A R Y / M A R C H 2 0 2 0 www.resourceworld.com 25 BROKER'S PICKS rience and is a processing specialist. He recently left the board of Newmont after 10 years and, amongst his many accomplish- ments, oversaw the commissioning of the Diavik diamond mine in the Northwest Territories. Carrabba is confident that permitting the historical Mary K Mine will be straightfor- ward. The mine lies on 450 acres of private land and the mineral rights are State Leases, not Federal. Since the mine is on a hill above the water table, a Federal Discharge water permit is not required. This, on its own, will speed up the permitting and develop- ment process significantly. As part of their due diligence, Bond Resources took a 500-lb sample from surface that returned an average grade of 0.79 oz/ ton (27.08 g/t). A 2-kg sample from sur- face sent to the Bureau Veritas laboratory in Richmond, BC returned 44.3 g/t with a combined gravity and flotation recovery of 96.3%. Based on the extent of the existing workings the company estimates that there is roughly about 180,000 tons of potentially mineralized rock that is near the surface with tremendous exploration potential. Bond Resources is acquiring the prop- erty from the current owner for US $10 million, US $500,000 is due over the next year and the balance of US $9.5 million is to be paid out of up to 50% of free cash flow once gold is produced. Bond plans to begin mining surface mineralization immediately. Material will be stockpiled and then processed via a toll milling contract or the outright pur- chase of a mill. If the gold mineralization is consistent with historical records, the company could generate significant cash flow which would go to finance the devel- opment and exploration of the existing underground workings. Bond is currently raising CDN $1.2 million by way of a $0.20 unit private placement. Each unit consists of a common share and a half warrant, each full warrant being good for two years at 40 cents. Post financing there will be 72 million shares outstanding on a fully diluted basis. The company expects to resume trading by the end of February. n Stew Vorberg and Doug Wood are Investment Advisors with Mackie Research Capital Corporation (MRCC). This article was pre- pared, in part, under contract by Thomas Schuster. The opinions, estimates and pro- jections herein are those of the authors and may not reflect that of MRCC. The informa- tion and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or war- ranty, 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 pro- fessional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss aris- ing 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 informa- tion contained in this article is not intended to constitute a research report. Stew Vorberg and Doug Wood are beneficial owners of the com- pany highlighted in this article.