Value Microcaps Junior Miners

[Bobwins]

Northern Empire Resources, NM.v/NOEEE C$.97

I bought a small position of this junior explorer around C$.80. Had a nice pop on Friday to C$.97.

Northern Empire recently bought a permitted heap leach open pit gold mine in Southern Nevada in the Walker Lane trend. Inferred resources are 709K oz at 2.23gm/ton. This is a high grade open pit past producing mine. 209K oz are within the permitted mine. There are three other deposits within their land holdings with the remainder of the 500K oz. Estimated production if they restarted the mine would be in the 30-40K/yr range so modest.

But the mgmt believes that there are substantially more ounces within their land package and they have started drilling. Their first results have been good.

https://finance.yahoo.com/news/northern-empire-reports-first-drill-110000372.html

https://finance.yahoo.com/news/northern-empire-reports-additional-gold-110000205.html

Mgmt is experienced and has sold previous projects for big profits. They intend to do something similar with NM.v.

Here is their latest presentation:

http://www.northernemp.com/_resources/corporate_presentation.pdf

FD share count is 53.2million shares. FD market cap is C$52million.

I normally like producers with 1 million in reserves and 100K production but this one looks like the right location, is close to production and good potential to increase resource. Obviously they would have to do a lot more drilling to move the 709K inferred resource ounces to reserves but because of the history of the deposit, a buyer might not require fully documented reserves. Coeur is an 11% stockholder so that is another positive.