Initiation of Coverage of Felix Gold (ASX: FXG)


May 11, 2022
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Felix Gold Limited is an ASX-listed exploration company that’s focused on the Tintina gold province
in Alaska USA. The company was listed on 28 January 2022 and has commenced its 2022
exploration drilling program during April 2022.

Felix’s strategic 392 sq km tenure is located within a district that has a gold endowment of over 20Moz – with the larger deposits including Kinross’s Fort Knox with an endowment to date of 16Moz, and Freegold’s Golden Summit Resource of over 2.9Moz and rising.

Felix’s drilling program is targeting the Treasure Creek area, with first assays due by the end of June. Treasure Creek has major discovery potential, as multiple historical drill intercepts ended in mineralisation and known mineralised structures have not been closed off. Large-scale gold-in-soil anomalies suggest large mineral systems, and existing drilling indicates the mineralisation starts close to surface and extends at depth (i.e. over 200m).

Two other target areas contain Resources or Exploration Targets – the Grant-Ester claims have an existing JORC 2012 Resource comprising surface and underground components of 4.8Mt at 1.95g/t containing 364Koz gold based on historical drilling, with historical recoveries from conventional CIL processing of over 95%. Liberty Bell has an Exploration Target of 1.2Mt to 1.83Mt grading between 2.3g/t and 2.66g/t.

There are multiple potential pathways to production – including feeding Kinross’s 30Mtpa Fort Knox operation. On Kinross’s last published mine plan of 2018, the 10Mtpa mill was to cease processing in 2020 and mining to heap leach was to cease in 2028. The mill is still operating and in 2020 Kinross has purchased 70% of a Resource that will supply 1Mt for 4.5 years, showing that it is prepared to do deals friendly to junior explorers if the numbers stack up.