How Did The Street Miss Juggernaut’s Neighbour Eastfield Resources?

Eastfield Resources Ltd seems to be the silent neighbor that everyone is looking for but completely missed. It sits right next to one of the MOST anticipated drill programs in 2018 – Juggernaut Exploration. Located south of the Golden Triangle in BC, Juggernaut’s key properties, Empire Property, and Midas Property are being drilled as we speak. Juggernaut Exploration has had an average volume of 408,000 shares. Yet, Eastfield Resources, the company that owns 100% interest in the Zymo Property, borders Juggernaut’s Empire Property. Eastfield had many days in July and August where no shares were traded.

How did the street miss Eastfield?

This reminds me that we are at or near the bottom of the mining cycle. If this was at the top of the cycle, I think this would have been discovered much, much earlier. Particularly, given the interest that Juggernaut’s properties have created.

Eastfield Resources’ Zymo Property sits next to Juggernaut’s Empire Property

When you look at the graphic we have created below, you will see the following:

  1. The Big One EM Anomaly is right at the border to the Zymo Property. It seems like the Street missed it.
  2. You will also notice that in the bottom right image, at the top of the 5.5 km long Inca Trend, Juggernaut states above the Olympus Zone, it is “Open”.
  3. Does this mean the Inca Trend continues on Eastfield’s Zymo Property? I am not a geologist but look at the image and judge for yourself.

Something to consider since BOTH Empire’s Big One and the Inca Trend are near the property line of Eastfield:

  • What happens to Eastfield’s Zymo Property if Juggernaut discovers on Empire?
  • What happens to Eastfield’s Zymo Property if Juggernaut discovers at the Big One?
  • What happens to Eastfield’s Zymo Property if Juggernaut discovers the next Eskay Creek?
  • What happens to Eastfield’s Zymo if there is both a discovery and the Inca Trend continues on the Zymo Property?

As you can see, there are potentially multiple ways in which the Zymo Property will benefit from the drill program going on at the Empire Property, if it goes well. The drill results will let investors know.

Here is a look at the where the Empire Property and Zymo Property bordering one another:

These are estimates and unanswered questions. Please do you own due diligence.  

4 Clips from 3  NEWS RELEASES from Juggernaut which might give us clues to its neighbor, to the potential

#1 As per Juggernaut’s July 4th, 2018 – News Release:

Source: Juggernaut Exploration (July 4, 2018). We have highlighted in blue

#2 Here are some highlights from Juggernaut’s July 31, 2018 – News Release:Source: Juggernaut Exploration (July 31, 2018)

#3 Here are some highlights from Juggernaut’s August 7, 2018 news release:

Source: Juggernaut Exploration (August 7, 2018)

Source: Juggernaut Exploration (August 7, 2018)

Juggernaut states above that it is placing three pads to target the subsurface Big One IP and EM anomaly, which is very close to the Eastfield’s Zymo property line.

The Knowns and Unknowns

 

Simple Valuation:

Eastfield Financials as of May 31, 2018 (CANADIAN DOLLARS):

Cash and cash equivalents                               $   668,083

Accounts receivable                                         $     78,602

Receivable from related parties                        $   276,509

Investments:                                                     $   368,613

Total Current Assets                                        $1,391,807

Exploration and evaluation assets                    $1,053,720

Equipment                                                         $       2,951

Promissory notes receivable                            $     67,629

Project deposits                                                $     82,000

Total Assets                                                     $2,598,107

Total Liabilities:                                                  $     67,302

Total Assets Deducting Total Liabilities        $2,530,805

Source: Eastfield Resources Financials

Market Capitalization as of September 4, 2018 ~ $2 million

Source: TMX

 

If we take the ~$2 million market cap and deduct cash and related investments, and accounts receivable, then the market is attributing a value of ~$700,000 to all other aspects of the business. Is this warranted? Again, this is a reminder as to what happens at the bottom of the cycle. Not enough eyeballs paying attention to things and Eastfield’s Zymo property is bordering the Empire property.

We leave you with this to consider?

  • What happens if Juggernaut discovers at Empire?
  • What happens if Juggernaut discovers at the border where the Big One is located?
  • Does the Inca Trend continue from Empire onto the Zymo Property?
  • From a value perspective, Eastfield’s Zymo property worth only $0.7 million if it border Juggernaut’s Empire property?
  • What is Eastfield Resources worth if ANY of the above happens?

DISCLAIMER:

First Macro Capital and related parties hold shares of Eastfield Resources and Juggernaut Exploration. We do not receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. The information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of First Macro Capital and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.

Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.

 

 

Get the exact checklist that Professionals use to find winning Gold mining producer stocks.
Apply this to any mining producer stock in under 30 minutes!

Leave a Reply

Your email address will not be published. Required fields are marked *

DO YOU WANT TO FIND WINNING
GOLD & SILVER MINER STOCKS?


Get the exact CHECKLIST that Professionals use to find WINNERS