The Round Mountain Gold Mine is on the west side of the
Toquima caldera in south-central Nevada. What Rover Metals
Corp. (ROVR:TSX.V; ROVMF:OTCQB) calls the Toquima precious metals
property is on the other side of the caldera. On April 10 Rover
announced a Letter of Intent to purchase all of the issued and
outstanding shares of Centennial Mining, owner of the Toquima gold and silver
project. Terms of the LOI call for Rover to issue 40 million shares for the
purchase of a 100% interest in Centennial. The 40 million shares will be
escrowed for a 12-month minimum period.
The intended purchase by Rover accomplishes two objectives. (1) it offsets
other NWT projects held and advanced by Rover. The NWT projects cost more and
are seasonal in nature and (2) the company wanted a U.S. based project in a
mining friendly jurisdiction for potential American investors to complement
its recent OTC listing.
Centennial Mining is a private subsidiary of North American Silver that
has about 100 different investors. NAS drafted a 43-101 on the Toquima
property in 2015 based on drill data from Echo Bay (the same exploration company
that discovered Round Mountain) done in the 1980s. The draft NAS 43-101
showed 31 million tons of rock containing 29 million ounces of silver and
239,000 ounces of gold but Rover is using a far more conservative number of 9
million ounces originally reported by Echo Bay in 1988 as a historical
resource. The NAS numbers suggest a lot of blue sky potential for the
property.
The property is in a nest of five calderas in the area hosting 24 million
ounces of gold and 89 million ounces of silver. Structurally the project is
similar to nearby Round Mountain holding 16 million ounces of gold and 15
million ounces of silver.
The TSX halted Rover's stock and their shares are likely to remain halted
for about six weeks in order for the TSX to complete their examination of the
paperwork and to complete due diligence. Meanwhile Rover is in the midst of a
minor $1.25 million private placement with a unit consisting of hard dollar
shares at $0.06 with a full warrant at $0.12 for five years. I don't think I
will surprise any potential investors by saying the Canadian capital markets
remain weak for companies with a market cap below $10 million.
Rover is an advertiser and I like the company and the prospects a lot.
Since I bought shares in the open market and am participating in the PP,
naturally I am biased but with a market cap of just over $3 million, I just
don't see a lot of risk. The company's Cabin
Lake and Up
Town Gold projects are surely worth that much.
Please do your own due diligence.
ROVR-V $0.065 (Apr 25, 2019)
ROVMF-OTCQB 47.4 million shares
Rover Metals Website.
Bob and Barb Moriarty brought 321gold.com to the Internet
almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline,
coal, solar, wind and nuclear energy. Both sites feature articles, editorial
opinions, pricing figures and updates on current events affecting both
sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than
832 missions in Vietnam. He holds 14 international aviation records.
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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own
shares of the following companies mentioned in this article: Rover Metals. My
company has a financial relationship with the following companies mentioned
in this article: Rover Metals is an advertiser on 321 Gold. I determined
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understanding of the sector.
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