Founders Metals Drill Update: Not What, But Where
CEO Colin Padget sat down with me to explain how recent drill results have redefined the blue sky potential of their Upper Antino targets, with many, many more undrilled targets left to come.
tl;dr:
Though it’s only been a few short weeks since I last interviewed them, Founders has certainly provided enough material news to warrant an update. Drill results continue to surprise to the upside and confirm the potentially world-class nature of the Upper Antino targets currently being drilled. The market seems to be slowly catching on finally as of yesterday (Feb. 29) but if you ask me, this is a materially different project than it was since my last interview with CEO Colin Padget. Not just what grades are being unearthed, but where they are being found are what maters here.
Two parts: Part 1. Companion Article, Part 2: Written, Timestamped Summary and Transcript
FDR.V
News releases referenced below:
Feb. 23: Founders Metals Discovers New Gold Zone at Donut and Extends Depth at Froyo to 250 Metres
Feb. 29: Donut Discovery Grows; Founders Metals Hits 19.0 Metres of 14.23 g/t Gold
Part 1: Companion Article
I was recently chatting with a friend in the industry (shoutout to Canadian Kyle) about how finding but not buying winners stings more than buying losers.
It’s with this little psychological itch that I have watched with some serious FOMO as Founders Metals marched up from 20 cents to the $1.30-$1.40 it finds itself at now since last summer. I knew it was good. I knew the results were impressive. But I didn’t know Suriname and was wary of South American exploration, and likely didn’t go deep enough soon enough to understand the true potential it was demonstrating.
So, each time it legged up, I figured I miss the party and pretended to ignore it to try to save myself some mental anguish. Finally, though, I gave in and sat down to try to understand what I was missing. And I am glad I did, because I came away believing that rather than reaching the end of what has been a very nice run, Founders is still just getting started.
This is due in no small part to the fact that strong drill results just don’t stop getting released as the rigs keep turning to the right. However, I believe that these most recent results especially - the ones since I last spoke with CEO Colin Padget - have served to redefine the potential of their Upper Antino targets in a meaningful and material fashion.
Now, Founders is no stranger to exceptional grades, as a perusal of their news section will tell you. But I believe that it is not so much what has been found, but where it has been found, that is so critical to how this story is (positively) evolving recently.
Consider:
From a Feb. 29 news release (not yet on their website at time of publication). The Donut target was meant to be a low-grade, bulk tonnage target. Which is to say, you are expecting results like the 37 meters of 0.62 gpt Au, or 16.5m of 2.35 gpt, or even 45m of 2.16 gpt that Founders has pulled out of it so far. All healthy, reasonable assays from a low-grade target, and enough to piece together a respectable deposit if they keep coming.
What you aren’t expecting to see, though, and neither was Founders, are surprisingly high-grade intercepts within that low grade body. 15m of 4.61 gpt Au isn’t exactly low grade. And neither is the headline number released just yesterday - unveiling a new discovery zone - featuring some 19.0m of 14.23 gpt gold within 207m of surface.
Which, returning to my thesis now, is a dramatic and material development. 19 meters of 14 gpt gold is impressive all on its own, but where it was found is what makes this so special. Finding it unexpectedly within what you thought was a low-grade target? It begins to fundamentally change your understanding of the system that is at play subsurface and how richly-mineralised it must be. So again, not what, but where.
As for Froyo - our original discovery area here - it has also been materially improved through recent results as well in critical ways. And again, the “where” is what really matters here. New discoveries have driven confirmed mineralisation 90 meters deeper than before, and the continued emergence of a parallel zone to the East of the original Froyo target is proving to be just as prospective as the original, substantially widening the known area of mineralisation. So, Froyo is rapidly confirming that it is roughly 100m both deeper and wider than it was known to be just a few weeks back. And they still haven’t hit the edges yet.
This is a crucial development when you start casting your eyes into the future at potential mining, as suddenly Froyo is looking to have the width that would allow a starter pit to be built, rather than moving directly into costly, selective, underground mining. So not only is it bigger in every direction than was thought before, it is now potentially unlocking superior costs and economics thanks to those developments.
And let me add that they haven’t even been able to get off Froyo and onto their other planned targets (Cupcake and Eclaire) at Upper Antino, much less other areas in their property that are on the drill program such as Buese. All of this discovery and excitement comes from just two targets, with multiple others that are just as high-confidence, thanks to historical artisanal mining. In our interview, Colin confirms they are looking to add a 3rd rig by June, as this is the type of project that deserves to be explored aggressively. And it’s hard to disagree.
I will post the assay charts below from the last couple announcements and be on my way here for now. This is one of those projects where the more you dig into it the more exciting it gets. With 30,000 meters or more to come in 2024, Founders has a chance to be a fundamentally different company 12 months from now. Excitingly, Colin has extended an invitation to me for a site visit. If that takes place, I will make sure to take notes and footage of it and try to bring the project back with me as much as I can for my followers.
So, even though I missed the first few steps of this journey, I firmly believe they are just getting started. Check the written summary below for a quick overview of our interview.
Part 2: Written Summary
Link to Transcript
00:02 Opening Thoughts
Matt introduces Colin Padgett, CEO of Founders Metals, noting their recent discussions and the significant developments at Founders Metals.
01:25 Recent Drill Results and Their Significance
Colin discusses the project's focus on the Upper Antino area and evwntual plans for the Buese target. He highlights the exploration pipeline's depth, including promising drill results and the project's expansion potential.
Colin details recent high-grade drill results and the strategic approach to exploring the Froyo Shear area, emphasizing the potential for broad mineralization favorable for future mining scenarios.
Colin shares excitement about the February 23rd release, which revealed high-grade extensions and the potential northwest extension of mineralization based on historical data and recent drilling.
12:12 Open Pit Mining
Matt expresses excitement about the project's evolving economics and potential for open-pit mining based on recent findings, particularly at the Donut area, which showed unexpected high grades. Colin suggests open-pit mining is plausible based on current data, mentioning future exploration plans and the potential for extending the mining area.
16:13 What Does the Market Not Understand?
Matt highlights the project's broad scope and potential, crediting Colin's data-driven approach and the significance of the Donut area as a new discovery. Colin emphasises the positive surprises they are uncovering in terms of size and grade and the true open nature of this discovery.
19:56 Future Drilling
Colin updates on shifting exploration focus to prioritize the promising Donut area over Buese, considering recent discoveries. He discusses logistics and future drilling plans. Matt inquires about a third drilling rig and expansion of the 2024 drilling program based on recent successes.
23:03 Short Selling
Discussion on short selling and institutional investment, addressing concerns about market dynamics and investor interest.
25:12 Parting Thoughts and PDAC
Colin emphasizes the project's exploration pipeline and the upcoming PDAC conference as opportunities to showcase the project's potential.
And here we are, at the end once again. Founders is a heck of a project, there’s really no other way to describe it. It just keeps getting bigger and better and for that reason it is becoming one of my favourite companies and positions.
And, as always, thanks for reading.
-Matthew from JRI
