Resource World Magazine

24 www.resourceworld.com A P R I L / M A Y 2 0 1 6 I n an effort to position itself for the next run in the resource sector, the management of entourage Metals [EMT-TSXV], who were part of the very successful Underworld Resources team, decided to form a new com- pany called Genesis Metals [GIS-TSXV]. This company was formed in early March when Entourage acquired all of the out- standing shares of Tawsho Mining. As part of the deal, Entourage con- solidated its common shares on a 1.5 to 1 basis. Tawsho shareholders received 0.227 EMT share for each TAW share. Genesis Metals now has 17.97 million shares out- standing and is trading at $0.13/share. The new company just recently raised $1.65 million at $0.10/share to enable it to advance its wholly-owned Chevrier gold project, which lies just 30 km southwest of Chibougamau, Québec. Chevrier is a brownfields gold project that lies at surface and covers 15 km of the very prolific Fancamp Deformation Zone. The Monster Lake Project, owned by Toma Gold and optioned by IAMGold lies just to the southwest on the same deformation zone. In 2010, Met-Chem tabled a NI 43-101 compliant inferred resource estimate that stated Chevrier hosted 300,000 ounces gold in 4.6 million tonnes of rock averag- ing 1.99 g/t gold (using a 1.0 g/t cut-off grade). This was based on a database of 102 core holes totaling 79,000 metres. The project also has a non-NI 43-101 compliant historic resource (that should not be relied upon) that helps to illustrate the high- grade potential of the deposit (650,574 ounces of gold averaging 5.42 g/t gold). Mineralization has been outlined over a 2.7-km long trend that remains open for expansion along strike and at depth. Some highlights of historic drill results include intersections such as 10.6 g/t gold over 3.4 metres and 10.10 g/t gold over 5.95 metres. Longer assay intervals include 1.74 g/t over 42.10 metres and 2.09 g/t gold over 20.3 metres. Genesis management believes there is significant potential to expand the size and grade of Chevrier mineralization. The first step will be to re-log and re-assay existing core. The next step will be to geologically re-model the deposit and update the NI 43-101 resource. Lastly, a surface program of mapping and sampling will be imple- mented to identify new targets. What excites me about this project is the fact that there is excellent potential to expand the resource without spending a significant amount of cash. All of the ini- tial work can be done relatively cheaply and efficiently. As a result, I believe value should be added without significant stock dilution. In my opinion, the optics of the com- pany are good. The project is in Québec, a top-tier mining jurisdiction; it is 100%- owned, has excellent access and has a strong technical team managing it. It is clear that Genesis is positioning itself to take advantage of what I believe to be the coming bull market in the resource sector with the Chevrier Project as its flagship property. Some new blood was also injected into the Entourage team. Brian Groves was appointed as Chief Executive Officer and a Director. He is a geologist with 30 years of experience in mining and exploration. Jeff Sundar has resigned as President and CEO and has been appointed Executive Vice President. John Florek has resigned as Vice President, Exploration but remains a Director. Shayne Nyquvest 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 opinions con- tained herein have been compiled and derived from sources believed to be reliable, but no rep- resentation or warranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regard- ing your particular 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 securi- ties. The information contained in this article is not intended to constitute a research report. Shayne Nyquvest is the beneficial owner of Genesis Metals shares. n b r o k e r ' s p i c k s S h a y n e N y q u v e s t Genesis Metals – good management, good structure, good project "It is clear that Genesis is positioning itself to take advantage of what I believe to be the coming bull market in the resource sector with the Chevrier Project as its flagship property."

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