Lode Gold (TSXV:LOD) has had a year of growth achieving one milestone after another. Despite facing a challenging market, the company has successfully raised $6M since March 2024. Now, investors have the chance to capitalize on a unique opportunity by investing in Lode Gold before a record date and receiving shares in two distinct entities. Both companies are engaged in gold exploration and mine development activities in promising regions across Canada and the US, providing shareholders with a diversified investment strategy and better optionality.
To unlock value for shareholders, the Company will spin off its Canadian assets into a company called Gold Orogen. Over $3M has been allocated to the spin out company, Gold Orogen, to ensure exploring work (geophysics, fieldwork, mapping and drilling) will be systematically executed in both Yukon and New Brunswick in 2025.
Following the spin-out, Lode Gold will shift its focus to the Fremont Gold Project situated on 100% privately owned patented land in California, with an existing mineral resource and significant potential for high grade underground option.
The structuring of two pure plays
The spin-out will result in the formation of two pure-play companies, each focused on specific areas of exploration in Canada and the US. This will help attract new investors who are interested in Exploration or Development projects – thereby broadening the company’s shareholder base.
Spin Co. (Gold Orogen) unlocks value for shareholders
The Spin Co. (Gold Orogen) will focus on its two assets located in Yukon and New Brunswick, creating a pure-play exploration company.
The Yukon property is situated on the prolific Tombstone Belt, known for its rich mineral deposits. Recently, the company completed a geologic survey known as SQUIDT over a large 99.5 km2 area. The Golden Culvert property has proven gold mineralization from drill testing a small 800 m section of a large gold-in-soil anomaly, striking semi-continuously for 15 km on the property.
Through extensive geophysical mapping, analysis and exploration efforts, the company has discovered four confirmed Reduced Intrusive formations (RIRGS – similar to Snowline). These formations are characterized by hornfels and signature host rocks; they are prevalent throughout the property, along with an elevated bismuth-to-gold ratio and sheeted quartz veins. In 2019, the company drilled two holes on the McIntyre Brook, both are mineralized, confirming its gold endowment. Field crews will be deployed in 2025 to further investigate the four RIRGS target (Border (WIN), Steelhead, Stingray, and Camp). Soil sampling, trenching and mapping will be conducted to define the drill target.
The Spin Co.’s (Gold Orogen) New Brunswick property is located on the Iapetus Suture belt, and is a geological analogue to major discoveries by New Found Gold, Calibre Mining, Kinross-Puma, and Galway Metals. Covering 420 km², it represents one of the largest land packages in the province, sharing a contiguous border with the recent Kinross’s Puma joint venture – where Puma is valued at $25M.
Numerous mineralized zones on Puma trend onto Gold Orogen’s McIntyre Brook and they will be the focus of upcoming exploration plans. Radiometric, magnetics and electromagnetics (EM) have been completed on both properties. In 2019, the company drilled two holes on the McIntyre Brook, both are mineralized, confirming its gold endowment. Soil sampling and trenching are in progress to define drill targets before the winter 2025 drilling season. Soil sampling and trenching are in progress in defining drill targets before the winter 2025 drilling season.
Lode Gold (parent) – Freemont previously minted at 8 g/t Au, Brownfield project with only 11% of the veins exploited
Following the spin-out of Gold Orogen, Lode Gold will focus on its Fremont project which is in the historically rich Mother Lode Gold Belt, a 190 km Belt which has produced 50,000,000 oz of gold. Fremont is a 4km strike on this trend. It is 90 min from Fresno, California, with road, hydro, and railhead access.
The Fremont property features a total of seven deposits spanning 3,351 acres on privately owned patented land in Mariposa County, the original Gold Rush county in the 1800s. In the 1940s, just as the mine was ramping up to expand production, the activities were abruptly halted due to the gold prohibition enforced during World War II. The mining license was suspended as a result.
Unlike other brownfield projects that have been mined out, only two of the deposits, Pine-Tree Josephine and Queen Specimen, at Fremont have been worked on, with just 11% of the veins exploited. Of note, 40% of the mineralization is in the veins, and 60% is in the stockwork between and outside of the veins. Mining was mostly in the first 250 m; the opportunity exists between 250-500 m. Three step-out holes (up to 1,200 m) hit structure and were mineralized.
Of note, Crown Point and Chicken Gulch on the Pine-Tree Josephine trend and the French, Ogle and Evans deposits, which are characterized as smaller vein-type deposits, situated off-trend to the east of the property have been left un-exploited.
Fremont was mined at 8 g/t in the 1940’s. Lode Gold is the first company to evaluate this project from an underground perspective. Two of the richest California mines, Argonaut and Kennedy, located 100 km north, were mined at 13 g/t Au, up to a depth of 1,800 m and had produced more than 4.5 million ounces of gold.
Fremont is a brownfield project with over 23 km of underground workings and more than 43,000 m drilled. All the drill cores are preserved in the core shack in California, as such only a 4,500 m drill campaign is planned to further define the resources and to update the Mineral Resources Estimate (MRE). This is a typical orogenic deposit with structural controls hosted in a breccia body inside of an altered serpentinite. The focus of the drilling will be between 250 m to 500 m for an estimated investment of $2M.
Investment opportunity
Investing in Lode Gold offers a compelling opportunity for shareholders to invest in both an advanced gold development project with ounces in the ground and simultaneously capitalize on its upcoming spinoff focused on two high value assets — this is designed to unlock maximum value. Shareholders will receive shares in two separate companies, thereby gaining exposure to three highly prospective gold assets.
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