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  /  Investment Thesis   /  FOLLOW THE MONEY – GOLDEN SPIKE RESOURCES (CSE: GLDS.CN) (OTC: GSPRF)

FOLLOW THE MONEY – GOLDEN SPIKE RESOURCES (CSE: GLDS.CN) (OTC: GSPRF)

Disseminated on behalf of Golden Spike Resources Corp.

FOLLOW THE SMART MONEY

GOLDEN SPIKE RESOURCES – CSE: GLDS.CN | OTCQB: GSPRF

This communication is not an offer to buy or sell securities nor is it to be construed as personal investment advice. Nothing contained in this communication should be relied upon as a promise or representation as to future performance.

They always say to follow the smart money and Billionaire Mining Legend Eric Sprott recently increased his stake in Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) to over 10%, positioning him as an insider and major influencer in Golden Spike’s future.

Eric isn’t the only industry heavyweight that has recently become involved with Golden Spike Resources Corp – last week Golden Spike announced a new partnership with Altitude Capital Consultants Inc. and ECM Capital Advisors, led by Michael Wekerle and Eugene McBurney. Wekerle’s illustrious career in capital markets, marked by his involvement in the Rogers-McLean Hunter takeover and the IPO of Research in Motion (RIM), adds an additional layer of credibility and confidence to Golden Spike’s strategic direction.

It’s because of recent moves like these that I have decided that I will be adding this name to my long-term investment portfolio.

Not only do I think that Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) presents a rare opportunity to invest in a Gold and Copper exploration company with untapped potential, there are five key reasons I have decided to add this name to my watchlist:

    1. Proven High-Grade Discoveries: The Gregory River Gold and Copper Property is central to Golden Spike’s exploration strategy. Historical exploration on the Gregory River Property has uncovered significant grades of Gold and Copper, making the expanded property a prime location for ongoing and future exploration activities.
    2. Untapped Potential – Immediate Exploration Plans: After receiving a Government Grant to accelerate exploration in Newfoundland, Golden Spike is ready to commence its 2024 exploration program, focusing on high-priority targets that could lead to substantial discoveries in the copper-gold sector.
    3. Recent Property Expansion: With a recent acquisition of an additional 1,625 hectares on its Gregory River property, this significant landholding increase positions Golden Spike to capitalize on the untapped exploration potential of this mineral-rich district.
    4. Strategic Partnerships & Strong Leadership: Not only does Golden Spike management bring decades of experience in mineral exploration, financing and deal-making, the recent alignment with industry leaders like Michael Wekerle, Eugene McBurney and Billionaire Mining Legend Eric Sprott are set to drive the company’s growth and market presence.
    5. Strong Insider Ownership: The tight share structure with significant insider buying and open market purchases suggest a strong internal belief in the success of the company – a bullish signal for future growth.

SPARTAN’S TECHNICAL ANALYSIS

GOLDEN SPIKE RESOURCES – CSE: GLDS.CN | OTCQB: GSPRF

  • Idea: Long Speculation GLDS.CN $0.23 – $0.28
  • Spartan’s 1st Target Area: $0.40
  • Spartan’s 2nd Target Area: $0.47
  • Stops: $0.10

     

  • Float: 30.39M
  • Shares Outstanding: 44.78M
  • Insider Ownership: 21.44%
  • Strategic Investors & Management Ownership: 63%
  • Market Cap: 11.195M

Downtrend break on the daily, volume starting to increase and range breakout setup for continuation. Will be watching for increased volume to come in as people become aware of Sprott’s position in the name.

INVESTMENT THESIS

Company Overview

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) is a Gold and Copper resource exploration company focused on identifying and developing high-grade mineral assets in favorable jurisdictions. The company currently holds a 100% interest in the 5,050-hectre Gregory River Property in Newfoundland, Canada, strategically centered over an approximate 11 kilometer-long stretch of the Gregory River volcanogenic massive sulphide (VMS) belt, a north-northeast trending corridor of very prospective ground with the potential to host Cyprus-type polymetallic VMS deposits. The property hosts a cluster of historically explored, high-grade, Gold and Copper vein structures.

Golden Spike Resources is committed to sustainable and environmentally responsible exploration practices, working closely with local communities and stakeholders, ensuring that its exploration activities not only advance its corporate gorals but also benefit the local economy and environment.

With Gold and Copper prices remaining elevated, Golden Spike’s focus on these commodities positions the company to capitalize on favorable market conditions, making it an attractive proposition for inventors looking for high-growth opportunities in the mining sector.

Untapped Potential in Newfoundland’s Gregory River VMS Belt

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) Gregory River Gold and Copper property is well-located, close to tide water and local infrastructure (roads, power and local work force). The geology is promising, with historical drilling and sampling showing encouraging results: surface mineralization, including assays of up to 19.6% Copper and 27.4 g/t Gold. With historical intercepts of 2.12% Cu and 0.60 g/t Au over 7.2 meters, the company’s exploration strategy targets multiple high-grade Cu-Au-Zn veins and VMS anomalies.

The potential for significant Gold and Copper discoveries positions Golden Spike as a prime candidate for future upside. Most of the identified targets remain unexplored at depth and new IP surveys have identified several key anomalies, offering prime opportunities for drilling and discovery.

The recent acquisition of an additional 1,625 hectares adjacent to its 100% owned Gregory River Gold and Copper property significantly expands the companies footprint in the region, positioning it as one of the largest landholders in the Gregory River district. This expansion could unlock substantial value for its shareholders as Golden Spike begins its 2024 exploration program.

Key Catalysts for Growth

Rapidly emerging as a key player in the Gold and Copper resource exploration sector there are two key catalysts that I will be watching for growth; 2024 Exploration Campaign and Macro Tailwinds.

2024 Exploration Campaign

Underscoring the importance of Golden Spike’s exploration activities, the company recently secured a Canadian Government Grant under the JEA program in Newfoundland. This grant is pivotal as it will directly support the ongoing exploration at the Gregory River Gold and Copper property, a key asset in Golden Spike’s portfolio.

The grant will enable to Golden Spike to conduct Induced Polarization (IP) surveys, detailed prospecting and drilling initiatives. This financial support not only accelerates the exploration process but also affirms the governments confidence in Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) potential in its ability to contribute to the local economy and the broader mining industry,

Keith Anderson, President and CEO of Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF), highlighted the importance of this grant, emphasizing the company’s commitment to environmentally responsible exploration and its dedication to generating economic benefits for local communities.

The upcoming phase of exploration at Gregory River will focus on three high-priority zones: two VMS zones and a Gold-Copper-Silver target. This is a crucial stage in unlocking value and confirming the mineralization potential of the property. Early signs of discovery could substantially re-rate the stock price and is something that I will be watching for.

Macro Tailwinds

The macroeconomic environment is highly supportive. Gold is at or near all-time highs, signaling the start of a favorable commodity cycle. Meanwhile. Copper is experiencing a supply shortage, with no significant new mines coming online.

Copper’s crucial role in the Green Energy transition makes this an attractive long-term play. The current price of Copper (around $5) is expected to rise significant over the next 5-10 years, further enhancing the value of Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) Copper prospects.

Gold Commodity Chart
Copper Commodity Chart

You can find more information on Golden Spike Resources Corp upcoming exploration program, including their most recent investor presentation which explains the geology and significance of Cyprus type VMS deposits and VMS style mineralization here.

Experienced Management Team

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) management brings decades of experience in mineral exploration, financing and deal-making. With the Keet’s family’s multi-generation expertise in Newfoundland and CEO Keith Anderson’s deep capital markets experience, the team has the technical know-how and investor network to advance the project through discovery and development phases.

With over 35 years experience, Geologist Robert Cintis, is excited about the prospectively of Golden Spike’s Steep Brook and Lode 9 Targets, and this confidence is key as the company embarks on it’s drilling program. For those that are interested, more information on Golden Spike’s Management & Directors can be found here.

Heavyweight Strategic Partnerships

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) recently announced a strategic partnership with Altitude Capital Consults Inc. and ECM Capital Advisors Inc., led by industry heavyweights Michael Wekerle and Eugene McBurney.

Wekerle’s illustrious carrier in capital markets, marked by his involvement in the Rogers-McLean Hunter takeover and the IPO of Research in Motion (RIM), adds an additional layer of credibility and confidence to Golden Spike’s strategic direction. A rock star in the world of Canadian finance, Wekerle is also the Founder and Chairman of the merchant bank Difference Capital Financial Inc., overseeing the successful growth of companies such as Hootsuite, Build Direct and Vision Critical and a former star on the hit Investment TV show Dragon’s Den.

McBurney’s 25 years of international investment banking experience, particularity in the global mining sector, positions him as a key play in driving the company’s growth and security its place in the global resource market. This partnership is designed to not only ensure that Golden Spike advances its exploration and development programs but will significantly amplify its market presence in the mining space.

Follow the Smart Money – Backed by Billionaire Mining Legend Eric Sprott

One of the most compelling reasons to invest in Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) is the substantial involvement of Eric Sprott, a Billionaire renowned for his success in mining investment, particularly in Gold and Silver. Sprott, a Canadian Mining Hall of Fame Inductee holds approximately 12.3% of the company’s shares on a non-diluted basis (16.5% partially diluted) through his firm. His track record of successful investments in early-stage mining companies (like New Found Gold Corp), signals a vote of confidence in Golden Spike.

Investors should take heed of Sprott’s involvement as he is know for making bold bets on high-potential exploration projects. Sprott’s past involvement in New Found Gold Corp (NFG), which went from early exploration to a $749M Market Cap, adds credibility to his position in Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF), suggesting a significant upside potential if history repeats itself.

Favorable Shareholder Structure & Insiders’ Confidence

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) has a tight share structure with only 44.7M shares outstanding and significant insider ownership.

Eric Sprott, Blair Naughty and other insiders are heavily invested in the company with insiders and management ownership exceeding 60% of the float. Insider buying and open market purchases suggest strong internal belief in the future success of the company. When insiders increase their positions it’s typically a strong bullish signal for future growth.

Current warrants also indicate that there is minimal dilution from where it sits.

Valuation & Upside Potential

With a current market cap of approximately 11.195M and 44.78M shares outstanding, Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) offers significant upside potential compared to its peers in the exploration space. A successful discovery could drastically re-rate the company’s valuation, similar to other successful early-stage explorers in Newfoundland (like New Found Gold). Given the size of the property, its rich mineralization and Eric Sprott’s backing, Golden Spike Resources is poised for exponential growth.

Technicals

Downtrend break on the daily, volume starting to increase and range breakout setup for continuation. Will be watching for increased volume to come in as people become aware of Sprott’s position in the name.

Conclusion

Golden Spike Resources Corp (CSE: GLDS) (OTCQB: GSPRF) presents a rate opportunity to invest alongside Billionaire Mining Legend Eric Sprott in a promising Gold and Copper exploration company with untapped potential. The Gregory River Gold and Copper property offers significant mineralization potential, while the tight share structure and insider buying reflect strong internal confidence.

With another exploration program set to commence, Golden Spike is positioned for a major discovery that could significantly enhance its market valuation. The current commodity cycle further supports the Bullish case, IMO making this a high-reward speculation investment in the junior mining sector.

GOLDEN SPIKE RESOURCES – CSE: GLDS.CN | OTCQB: GSPRF

  • Idea: Long Speculation GLDS.CN $0.23 – $0.28
  • Spartan’s 1st Target Area: $0.40
  • Spartan’s 2nd Target Area: $0.47
  • Stops: $0.10

  • Float: 30.39M
  • Shares Outstanding: 44.78M
  • Insider Ownership: 21.44%
  • Strategic Investors & Management Ownership: 63%
  • Market Cap: 11.195M

Current Idea is a speculation long. More information on Golden Spike Resources including its recent investor presentation outlining its property and upcoming exploration campaign can be found here.

Best Regards,
Spartan (aka ‘Chris’)

 

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