Cartier Resources (ECR) - New Resource Re-Rate Imminent From 4 Bagger

Summary

• TSX-V: ECR.
• Shares Outstanding: 214.58M.
• Share price C$0.31 (07.01.2021).
• Market Cap: C$67M.

Cartier Resources is an exploration company focused on discovery in the prolific Abitibi Gold Belt in Quebec. The Company operates a process which aims to develop and maintain a balanced portfolio of mining projects ranging from exploration to resource definition, development, and production.

We caught up with Philippe Cloutier, President & CEO of Cartier Resources to discuss their progress since we last spoke to them in August and about the plans for Cartier Resources in 2021.

Company Overview

Cartier Resources is a Canadian-based exploration company focused on Gold in the Abitibi Greenstone Belt, the Quebec portion. Their business model was to pick up Gold deposits in the last bear market at CAD$1/oz. When the market picked up a few years ago, Agnico Eagle took a 19.9% stake in Cartier Resources and since then, other senior investment institutional funds have taken a sizable position which has allowed them to advance their deposits. They are about to finalise the price of their Chimo mine project and are initiating drilling on their second deposit, the Benoist Gold deposit that is in the heart of the northern part of the Windfall Gold Belt.

Cartier has completed the 3rd phase of diamond drilling at the Chimo project and delivered a 2nd Resource Estimate. They have launched the process to initiate and deliver a 3rd Resource Estimate. They are looking at delivering anywhere between 1.7Moz - 2Moz of Gold in this next resource estimate. That will dovetail into a PEA and determine the value of the project. While they're doing that, they're drilling on Benoist.

Chimo was a former-producing asset and they’ve completed 60,000m+ of drilling and are now moving it to the next stage with the resource consultants and engineers. As a past-producing Gold mine, there is great value in the historical, geological, metallurgical, and mining infrastructure heritage of the project.

Cartier had a good year in 2020, with low points in the share price at CAD$0.08 in March and April but now up to around CAD$0.34 today. A 4x return. Chimo can be bulk-mined underground, low-grade, high-tonnage but it could also be cherry-picked, more selective mining. There is a lot of value in determining the exact techniques and the share price will be re-rated once the value of Chimo is finalised. The market values Cartier at CAD$70M which Cloutier suggests would be split at about 70-80% on Chimo, and then rest on the blue sky of Benoist, Wilson, and Fenton deposits.

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