BMR’s due diligence continues with Excel Gold Mining (EGM, TSX-V) which moved 2 cents higher last week on continued strong volume to close at 17.5 cents, just half a cent shy of its 52-week high. As we’ve already pointed out, Excel has a phenomenal-looking chart and its volume surge this year, particularly since June, is an extremely important technical development. Strong volume patterns are critical in a junior resource stock (any stock for that matter) and we see those patterns in Excel.
On Tuesday, August 31, I visited the former Montauban Mine which is nestled in a rural area about a 30-minute drive from Trois Rivieres, Quebec. Montauban is a former significant near-surface gold, silver and base metals producer but has not been in operation since the early-to-mid 1980’s. There is strong local support for a re-opening of this mine which likely wouldn’t be too difficult to do. That is one of Excel’s objectives. Their other objective is to determine if there’s an extension of the Montauban structures, in all directions, and quite often that’s the case in situations like this – Gold Bullion discovered the same thing at Granada. We’ve stated this many times – the best place to find a new mine quite often is near an old mine. Osisko (OSK, TSX) is the best example of that. Below is just one of the pictures I took around the former Montauban mine site:
It took several years but Excel has cleverly tied up a lot land around the former mine. In fact, their total land package now sits at 130 square kilometres and much of it is very under-explored. A geologist I spoke to on-site is very excited about the possibility of a detailed regional exploration program.
Excel’s Montauban Mining Camp Project has considerable blue sky potential, and the company’s geological consultants are also working very quickly at assembling all the historical data pertaining to the former mine for a Gemcom 3-D cut overview. This will aid Excel immensely in advance of more drilling aimed at quantifying remaining reserves and increasing those reserves. They will also test depth potential – very limited historical drilling has occurred below 200 metres vertical depth at the former mine.
We’re keeping a close eye on Excel. Nice fundamental components – a former mine, near-surface mineralization (gold, silver and base metals), a large land package, great location. The company is trying to take a new approach to this former producer. Very strong technicals with the stock. We have a little more due diligence to complete but from what we’ve seen so far, Excel has all the ingredients of being another potential home run opportunity for BMR readers. As always, perform your own due diligence – our task at BMR is to introduce special situations such as this for our readers to follow up on. We’ll of course be reporting more on Excel in the near future.
– Jon
