Value Microcaps Junior Miners

[Bobwins]

AXU vs PGM.v

The winner, in my view is PGM.v. PGM.v has a market cap of C$873M or ~US$653M vs AXU market cap of US$409M. However I believe the bigger market cap is well deserved.

Pure Gold is focused on first production from their gold mine in Q4 2020, around the same time as the Alexco first production from their restart of their silver mine. However Pure Gold will be producing around 100K oz of gold vs 3 to 4 million oz of silver for Alexco.

The difference in gross revs is significant. 100K X $2,000= $200million vs 4 million X $24 = $96 million. Also remember that Alexco operated this silver mine before and had to suspend operations because it wasn't profitable enough. So based on near term projected operations, I would value PGM.v higher. We have to see the actual cashflow from each mine but I am guessing that PGM will win out.

The big prize for PGM.v is the POTENTIAL. Pure Gold is saying that their deposit is similar to their neighboring RED LAKE mine, formerly operated by Goldcorp. After they started mining the deposit at similar grades to the Pure Gold deposit, they drilled below 2,000 meters and struck really high grade gold and transformed Goldcorp into a premier producer. Once they get phase I up and running, that will be Pure Gold's main goal. They want to prove to the world that they have high grade gold that will multiply their cashflow and send the market cap into the billions.

Is it for sure? NO! But Pure Gold has several factors that lean in their favor. Their CEO used to be chief geologist on the RED LAKE mine. He is very familiar with the geology and considers it very similar. They have drilled one hole below 2,000 meters and it was a good high grade hole. Several big hitters have financed Pure Gold, believing that they will duplicate Goldcorp's drill results.

Alexco also has potential. The Keno Hill District had several of the highest grade silver mines in the world. However the mines were built many years ago and the silver mined out. Alexco is looking for new extensions of deposits or new deposits based on better technology now and better recovery techniques. I think they will become a major silver producer but I think PGM.v has bigger upside and better survivability due to it's focus on gold vs silver. Pure will have more time to find it's high grade gold due to the more stable price of gold.

That's my two bits. These are two good near term producers. Both have near term and future potential to get much bigger. Good luck.