Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 8 www.resourceworld.com 39 O ften a good project is wrapped up in a poorly structured company or it can be mired in an arduous option agreement or burdened by unre- alistic taxes and royalties. One example is the Tonopah gold project in Nevada, previ- ously owned by Midway Gold. In March of 2017 Aintree Resources Inc. [AIN-TSXV] acquired a 100% interest in the Tonopah Project from Midway Gold following its bankruptcy and liquidation of assets. The main stumbling block that prohibited the earlier success of the proj- ect was its very high royalty structure: previously a 7% royalty rate at gold prices in excess of US $700/oz. Aintree entered into a Royalty Deed Modification and Waiver of Claims Agreement with the underlying royalty holders on the project and eliminated advanced royalty payments and restruc- tured an onerous sliding scale Net Smelter Royalty (NSR) into a flat 2% NSR structure. As a result, the project now has a much more palatable NSR structure. In exchange, Aintree paid cash consideration of US $50,000 and 1.5 million shares to the parties involved. The Tonopah Project is an advanced- stage exploration project located on the prolific Walker Lane Trend of western Nevada. Historic drilling programs on the Tonopah Project have completed a total of 282,765 feet of drilling in 478 reverse circulation and 146 core holes on the prop- erty. A total of nine mineralized zones have been broadly outlined. The Tonopah Project consists largely of fault/fracture hosted gold mineraliza- tion associated with veins, breccias and fractures, with lower-grade mineralization spreading laterally into the surround- ing rock. Higher grades appear to project along high angle structures. Previously two sets of historic resource estimates have been produced, one focused on the lower grade mineralization and the other focused on the higher-grade mineralization. A recently completed technical report by Gustavson Associates of Lakewood, Colorado, states that there is sufficient historical exploration data to complete an updated resource estimate combining the two mineralized systems. A new resource model based on the relationship between higher grade structures and lower grade contact structures should provide targets that could extend current mineralization. Aintree is in the process of raising $1.2 million, the proceeds of which will be used to settle company debts, ordinary course payables, fund bonding obligations, con- sulting fees and expenditures, including completion of a technical study and drill- ing campaign on the Tonopah Project, and for general working capital purposes. The Tonopah Project is well situated and can be easily accessed by paved road 20 miles from the town of Tonopah. Both water and power are available in close proximity to the site. Tonopah is located within four hours' drive of Las Vegas and is close to Round Mountain where equip- ment supply depots, machine shops and skilled labour can be found. Aintree has assumed existing drilling permits and has posted reclamations bonds for the Tonopah Project. The project and its excellent infra- structure, has seen a significant amount of previous work which indicates a robust mineralized system. With the previous flaw of its onerous royalty structure now resolved, there should be an easier path to success for Aintree Resources as the com- pany moves the project forward. As with all development-stage projects, there are still risks but Aintree believes that these can be managed and mitigated. We believe Aintree Resources is a company to watch as it advances the unburdened Tonapah Project. 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. Broker's Picks by Stew Vorberg and Doug Wood Aintree Resources – unveiling an unburdened Tonapah Project www.resourceworld.com

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