Deep Discount

Nevada's Most Undervalued Gold Resources

LOS ANGELES, September 20, 2017 /PRNewswire/ --

Gold prices have stayed above the $1,300/oz threshold for nearly three weeks now, but the market appears to be still asleep at the wheel on gold miner stocks. Miners in focus today include: Bullfrog Gold Corp. (OTC: BFGC), Northern Vertex Mining Corp. (OTC: NHVCF) (TSX.V: NEE), Pershing Gold Corporation (NASDAQ: PGLC) (TSX:PGLC.TO), Corvus Gold (OTC: CORVF) (TSX: KOR.TO), Barrick Gold Corp (NYSE: ABX) (TSX: ABX.TO)

Miners in the gold-laden deserts of Nevada are especially getting a raw deal from the market. The state is not only very prolific, but it is also safe, stable, and historically successful.

In 2015, Nevada produced 5,339,659 troy ounces of gold, worth approximately $6.194 billion, representing 78% of all US gold production, and 5.4% of the world's production.

So, it's a real headscratcher when you look at the deep discounts the market are giving to the state's gold ounces that are still in the ground. Nevada knows how to pull gold from the dirt.

BULLFROG CASE STUDY 

The case of Bullfrog Gold Corp. (OTCQB: BFGC) is an intriguing one to say the least, as it has one of the lowest per-ounce valuations in recent memory.

As of September 12^th, the price of gold is at $1,333/oz of gold, whereas Bullfrog has a market cap of $10.7 million.

According to the company's 43-101 resource estimate released back in mid-August, Bullfrog Gold's self-named Bullfrog Gold Project contains a total of 624,000 oz of gold.

This means the market is only assigning Bullfrog's gold resource a value of $17.15/oz.

That's a nearly 99% discount on the current price tag of $1,333/oz.

The message from the market on this resource is not only disjointed, but it's also borderline tragic, when compared to peers with similar resources, grades, and location.

PEER REVIEW 

Is Bullfrog's under valuation the norm?

Well, one must look no further than a peer with similar grades and size of resource, but far more market respect for underground gold valuations.

Northern Vertex Mining Corp. (OTC: NHVCF) (TSX-V: NEE.V) currently has a market cap of $73.742M. Keeping in mind that the company is much closer to production on its 100%-owned Moss Mine than Bullfrog is on its flagship project, it's still quite relevant to observe the per-ounce valuation difference at its most blatant.