Interview with Gerald Panneton, Executive Chairman of Gold Terra Resource Corp.

Our previous interview: https://www.cruxinvestor.com/posts/gold-terra-resource-tsxvygt-2moz-gold-target-revitalizing-canadas-yellowknife-gold-belt-5974

Recording date: 28th November 2024

Gold Terra Resource Corp (TSXV:YGT) is a junior gold exploration company focused on advancing its Yellowknife City Gold Project (YP) in the Northwest Territories of Canada. The project is located in the historic Yellowknife gold district, which has produced over 14 million ounces of gold historically.

In a recent interview, Gold Terra CEO Gerard Panneton provided insights into the company's strategy and the investment opportunity it presents. Panneton emphasized the importance of high-grade ounces in generating robust margins and returns for investors. Gold Terra's Yellowknife Project fits this bill, with the potential for a sizeable high-grade gold resource.

A key competitive advantage for Gold Terra is the project's location and infrastructure. Situated near the city of Yellowknife, the project benefits from extensive existing infrastructure, including roads, power, and a skilled local workforce. This translates into lower exploration and development costs. As Panneton noted, "The cost of drilling is $200 per meter all-in. Our geologists, our technicians live in Yellowknife, we don't have to bring them, we don't use helicopters for our drill program."

The 2021 acquisition of the past-producing Con Mine from Newmont Mining was a game-changer for Gold Terra. The company secured 100% ownership of the Con Mine for C$8 million, which came with substantial infrastructure, including underground development. Panneton estimates this infrastructure would cost over $150 million to build today, representing significant savings and value for Gold Terra shareholders.

Gold Terra's exploration strategy is focused on delineating a gold resource of 1.5 to 2.0 million ounces at YP, which Panneton believes would justify mine development. While the company had hoped to hit this target through deep drilling, current market conditions have necessitated a refinement in strategy. Gold Terra will now focus on cheaper, near-surface drilling to generate value and news flow for investors while still methodically advancing the project.
The investment thesis for Gold Terra is straightforward:

High-grade gold potential in a tier-one jurisdiction
Significant existing infrastructure from past-producing Con Mine
Experienced management team with a track record of creating value
Disciplined exploration strategy to deliver results in current market conditions

Panneton summed it up well, saying, "I know that when somebody invests in a junior that is well run, with a good project, you're paying maybe $10 an ounce. However, your reward could be 10 times, 15, 20 times, if you're with the right project and the right team."
With a market capitalization of around C$40 million, Gold Terra appears to offer a compelling risk-reward proposition for investors. While not without risks, the company's high-grade gold potential, existing infrastructure, and strong management team make it a junior gold explorer to watch. In a rising gold price environment, positive exploration results from Gold Terra could quickly translate into share price appreciation, making it a timely opportunity for investors comfortable with the junior resource sector.

View Gold Terra Resource's company profile: https://www.cruxinvestor.com/companies/gold-terra-resource-corp

Sign up for Crux Investor: https://cruxinvestor.com

Ep. 249: Amipotence in the Wesleyan Tradition