Felix Gold Limited (ASX: FXG) came to life in late 2020 to identify and acquire large-scale gold exploration prospects in the world-class Tintina Gold Province of Alaska. The company went on to make a major gold discovery in 2022 and is now just a few months away from delineating a maiden resource which Felix consider could pique the interest of potential acquirers. 

Felix believes they are shaping up to be yet another success story for Mine Discovery Fund Pty Ltd (MDF), a company at the forefront of discovering Tier 1 metals deposits. MDF’s expert geological advisory board is responsible for some of the biggest discoveries in the world, with subsequent planned and actual production exceeding $100 billion. The team uses AI-driven proprietary algorithms that incorporate machine learning for big data processing to identify high priority targets.

MDF selected Felix’s highly prospective tenements because they were underexplored but still had clear paths to production without building a mine in the event of a discovery.

The area they have been drilling, NW Array Southern Zone, has the potential to host from 270koz to 890koz gold – which is more than enough to get their neighbours to the negotiating table.

Join CEO Anthony Reilly this Friday, 11th August at 12pm (AEST) for a live investor briefing. Hear more on Felix Gold’s 1.1Moz – 3.6Moz gold resource with potential for low capex production. Click here to book your spot.

Source: Felix Gold Limited

Staunch assays shaping a commercial deposit

The big break came in 2022, when Felix made a major discovery at NW Array within the flagship Treasure Creek Project, which included 90m @ 1.2g/t Au from 32m, including 60m @ 1.6g/t Au from 42m. The company then unveiled the potential to host from 1.1Moz to 3.6Moz of gold according to a JORC compliant exploration target.

The drilling continued, and in July Felix released another round of assays after a 45 hole, 4,500m resource definition drilling program. They intercepted 100.5m @ 1.14g/t gold from 21.3m, including 47m @ 1.7g/t gold from 38.1m.  Another standout assay included 70.1m @ 1.6g/t Au from 6.1m, including 7.6m @ 6.4g/t Au from 21.3m.

The Alaskan gold explorer put out more drill results at the end of July, which included 54.9m @ 1.80g/t Au from 1.5m, including 30.5m @3.02g/t Au from 7.6m and 4.6m @ 7.10g/t Au from 19.8m. The company also intercepted 53.3m @ 1.08g/t Au from 30.5m including 10.7m @ 2.55g/t Au from 44.2m.

Both the grade and the near-surface nature of the mineralisation indicate a potential low cost open-pitable resource. Additionally, the identification of further high-grade north-east trending zones continues to establish the trend Felix has been exploring, while extending it in width and length.

Click here for an opportunity to hear directly from Anthony Reilly about Felix’s potential for low capex gold production in a live investor briefing this Friday, 11th August at 12pm (AEST).

Derisked and accelerated pathway to production

Felix is in a unique position of potentially not needing to invest into building their own production facility and mill. The NW Array Southern Zone area is directly adjacent and less than 20km away from Fort Knox, which produced 291Koz of gold equivalent in 2022. The mine has a 16Mtpa mill that is operating at just 55% of capacity and receives a head grade of around 0.7g/t Au. With an ore-hungry mill, Kinross Gold Corporation (NYSE: KGC) is actively engaging in M&A to extend the mine life of their Fort Knox mine.

Back in 2020, Kinross showed just how serious they were about consolidating the best deposits in the region, when they forked out US$93.7 million to acquire 70% of another Alaskan gold deposit. The project is expected to generate an extra 640koz of gold production for Kinross over the life of the mine. It’s a good time to remember that Felix Gold has a market cap of $18 million (8 August 2023).

Kinross’ first quarter of 2023 reiterated their strong focus on improving margins in their US operations. Central to this is the Fort Knox mine – and utilising all its infrastructure to its full capacity. Kinross is preparing to bring the Manh Choh deposit online, which involves transporting ore 400km to Fort Knox for processing and comes with a total capital expenditure of nearly US$200 million. 

Viable deposits that are much closer to the mine and are cheaper to bring into production are a strong focus for Kinross, and Felix Gold is working to prove up a resource that fits Kinross’ requirements. Felix has repeatedly intersected wide assays that are a considerably higher grade than the ore being processed at Fort Knox, and is now only a few months away from releasing their maiden JORC resource.

An additional sweetener for the company is that they have repeatedly observed high-grade antimony – one of the world’s most elusive critical minerals – across NW Array. The prospect of antimony is especially noteworthy because the Scrafford Shear Antimony Mine, which is on Felix’s tenement, was historically the second largest antimony mine in Alaska. Recent drill cores came back with 6.1m @ >5% Sb from 30.5m as well as 1.5m @ >5% Sb from 53.3m, respectively.

Join our live investor briefing with Anthony Reilly, Managing Director of Felix Gold, this Friday 11th August at 12pm (AEST) where we will discuss their ideal strategic location and why they are backed by world famous geologists. Register here.

Years in the making

MDF engaged in a year of painstaking analysis that culminated in the acquisition of Felix’s 392km2 tenement package with 40km of strike, in an area which has produced over 16 million ounces (Moz) of gold.

The decision to acquire this tenure was the result of a single-minded focus by Felix’s founders. They sought large scale orebody opportunities in established, well-endowed mining districts globally. They wanted to create a world-class exploration company.

Felix’s tenements have produced over 2Moz of gold historically, a portion through hard rock mining but the majority from alluvial mining by individual prospectors due to the gold that had drained into nearby creeks. The subsequent digital conversion of paper data allowed Mine Discovery Fund (MDF) to implement their cutting edge, AI-driven exploration systems. After months of soil sampling and geophysical surveying, Felix had a raft of high-priority drill targets that formed the backbone of the company’s exploration plans.

It’s been almost two years of drilling since Felix IPO’d in January 2022, and with next quarter’s  maiden resource fast approaching – Felix believes the rich history of this project is becoming a reality.

Join our live investor briefing with Anthony Reilly, Managing Director of Felix Gold, this Friday 11th August at 12pm (AEST). Click here to book your spot.

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