If understanding the new economy - InvestorIntel

If understanding the new
digital               economy
(cryptocurrency) keeps you up
at night, Voyager Digital
seeks to empower
It probably doesn’t matter if you are a baby boomer, Gen-X or
even a millennial/Gen-Y, you are likely scratching your head
just like the rest about the cryptocurrency market. And you
thought “mining” was about physically digging for gold etc.,
not a computer algorithm trying to solve an equation to earn
you crypto? Welcome to the 21st Century!

Here’s a company you need to be aware of, as it is
representative of where this “new” digital world is going.
Voyager Digital Ltd. (CSE: VYGR | OTCQB: VYGVF) is a
relatively new public company, having closed its go-public
transaction in February 2019 with a relisting of the company’s
shares from the TSX Venture Exchange to the Canadian
Securities Exchange in September 2019.

Voyager is a crypto-asset broker that provides retail and
institutional investors with a turnkey solution to trade
crypto assets. There’s an application to do this (naturally),
which is available for both Apple and Android smartphones.
Trading is commission-free and the company is dedicated to
offering best-in-class customer service and providing a
trusted and secure access point to crypto asset trading. There
are currently 50 digital assets and 10 Decentralized Finance
tokens (DeFi) on its crypto trading platform.

The company was founded by a group of finance and technology
industry veterans from New York and Silicon Valley who have

combined, decades worth on knowledge and expertise from
leading organizations such as E*TRADE, Uber, Trade.It and
Lightspeed Financial as well as having a technical adviser who
was the founding Architect and Chief Technology Officer at
Uber. They are based in New York and are registered with the
appropriate regulatory bodies in the United States.

I know, this techno-jargon is probably making your head want
to explode….it does mine sometimes too. I thought I was being
sophisticated when I signed up for an online cryptocurrency
mining site 18 months ago. Well, Bitcoin et al have been more
than volatile and maybe you made money, but maybe you also
lost it. We have all read about the issues with stolen
cryptocurrency wallets plus the other vagaries of the
cryptocurrency space and concerns about keeping your digital
currency wallet from being hacked.

The use of cryptocurrency to buy and sell goods and services,
among other things, is a new and rapidly evolving industry.
Although it is widely predicted that cryptocurrency will
become a leading means of digital payment at some point in the
future, many issues are yet to be resolved including
government regulation and the broad market acceptance of the
use of a volatile digital form of payment.

But there is a market for cryptocurrencies and it appears to
be growing. And it’s not just about paying in a
cryptocurrency, it is also about buying and selling them like
you would a stock or commodity. Voyager’s trading is based on
access to more than a dozen secure and trusted exchanges and
market makers to offer unparalleled speed, liquidity and
pricing in the app. It is currently only available to
residents of the US excluding New York State.

They are currently working with regulators to operate in New
York and internationally and have announced the intention to
launch the Voyager app in Canada this fall. On October 1, the
company announced the appointment of the Head of Business

Development and International Strategy, Lewis Bateman, located
in Toronto, confirming the commitment to development in the
Canadian market. He will focus on building out Voyager’s
regulatory compliant international infrastructure in North
America, Europe and Latin America as well as developing
additional strategic relationships to accelerate the company’s
growth.

In addition to the interest in the launch in Canada, the
company is seeing significant adoption by new and existing
users. “This is evidenced by our strong trading metrics and
revenue growth, with the September quarter’s anticipated
revenues expected to exceed $2 million as previously
announced, representing a 200% increase from the previous
quarter” said Steve Ehrlich, Co-Founder and CEO of Voyager
Digital.

Go into either the Apple app store or the Google app store and
you will find multiple possible cryptocurrency trading
applications available to download. However, Voyager Digital
is relatively new and is publicly listed in Canada and is
intent on international expansion. As we all learn more about
crypto and maybe step into that world, Voyager is one company
that provides an extensive (and growing) list of currencies to
access, no-commission trading and security. But if owning or
trading cryptocurrency keeps you awake at night, there is an
opportunity to still benefit from the Voyager model through
the public listing.

Lab tests show ZEN Graphene’s

virucidal ink 99% effective
against   COVID-19;  patent
applied for

Optimization, production scale-up                        and
commercialization planned
Another month deeper into the global COVID-19 crisis and the
world is still looking for effective tools to combat the
pandemic. Virus testing is still both not widespread nor
accurate enough, and a vaccine still eludes us. Governments
and businesses are grimly contemplating the consequences of a
second (or is it the third or fourth?) wave and the potential
for another economy-crippling, government-sanctioned lockdown.
In the meantime, we are all looking for ways to avoid the
virus and keep ourselves healthy.

On September 22, 2020, ZEN Graphene Solutions Ltd. (TSXV:ZEN |
OTC:ZENYF) announced that after 5 months of optimization, it
has developed and successfully tested a novel graphene-based
virucidal ink with 99% effectiveness against COVID-19. The
ink, used as a coating or protective layer on masks and other
PPE, was shown to be 99% effective against the COVID-19 virus
and significantly was still 99% effective a minimum of 35 days
after application to N95 mask material. The company is now
developing plans to expedite commercialization of this
product, pending regulatory approval, and has filed a
provisional patent for this graphene-based virucidal product
and is beginning antibacterial and antifungal tests utilizing
its proprietary virucidal ink formulation.

ZEN Graphene followed up this announcement with more news on
September 28, 2020 that the University of Guelph has filed a
provisional patent regarding an electrochemical exfoliation

process to produce graphene oxide (GO) from Albany Pure
Graphite. The exfoliation method is designed to be a scalable,
low cost, low energy and environmentally friendly method of
producing graphene oxide, a key ingredient in ZEN’s
proprietary virucidal ink.

A virucide is any physical or chemical agent that deactivates
or destroys viruses. This differs from an antiviral drug,
which inhibits the proliferation of the virus. Virucides are
not intended for use inside the body, but they are effective
on surfaces outside the body.

In the recent results from Western University’s ImPaKT
facility Biosafety Level 3 laboratory, two ZEN Graphene
graphene-based ink samples at different concentrations were
applied to N95 mask filtration media and then exposed to the
SARS-CoV-2 virus that causes COVID-19 and tested for antiviral
properties. Very significant virucidal activity was recorded
and reported, achieving 99% inactivation of the virus for both
samples in 3 separate tests each and verified through a second
round of testing. Of significance, the antiviral effect of the
second round of testing was on material that was prepared 35
days earlier demonstrating the ongoing virucidal activity of
ZEN’s proprietary ink.

The research and development of this antiviral ink formulation
was conducted entirely by ZEN’s research team at its Canadian
facility using a graphene product that was produced from its
Albany mine graphite.

The significance of the ZEN Graphene virucidal ink is based on
the physical characteristics of graphene. Graphite flakes
extracted from the ZEN Albany mine in Ontario to convert to
graphene are approximately 9 microns (9,000 nanometers) making
conversion to graphene very cost effective. Graphene is 200
times stronger than steel, conducts heat 10 times more than
copper and conducts electricity 1,000 times better than copper
according to ZEN Chairman and CEO Dr. Francis Dubé.

In other words, you soon could be wearing a mask with the ZEN
virucidal ink on it and would not know the difference between
that and a non-coated mask. Except to know that you are now
actually wearing something that actually kills the coronavirus
as it passes through your mask.

There are still multiple steps for ZEN to go through before
the virucidal ink is publicly available on personal protective
equipment, but this is a big step forward towards
commercialization as technology brings society closer to a
coronavirus solution.     In the meantime, ZEN intends to
continue to move rapidly towards optimization, production
scale-up and commercialization of its graphene-based ink.

H2O Innovation walks on water
with $133 million in revenue
at year end
Water, water everywhere… Most of us have the luxury of not
giving water much thought, but it is a business. Big business.

H2O Innovation Inc. (TSXV: HEO | OTCQX: HEOFF) is making waves
in the world of water and wastewater solutions. The company’s
just released results for fiscal 2020 (June 30 year-end)
showed significant revenue growth in a year with the dominant
headline being the global virus pandemic. Top-line revenue of
$133.6 million was up more than $15 million from $118 million
the previous fiscal year – who knew water handling could be so
lucrative? Many investors don’t even know the company exists,
but results like these could make them sit up and take notice.

In addition to the impressive revenue growth in fiscal 2020,

the company    also   saw   big   improvements   in   financial
performance:

     Gross profit margin before depreciation and amortization
     expenses represented 26.9% of the company’s total
     revenues for fiscal year 2020, compared to 23.0% for the
     previous fiscal year;
     Adjusted EBITDA reached $12.5 million, or 9.4% of
     revenues, for this fiscal year compared to $7.2 million,
     or 6.1% of revenues, for the previous fiscal year;
     Earnings of $0.9 million before impairment and
     restructuring costs for the 2020 fiscal year, compared
     to a loss of $2.2 million before impairment and
     restructuring costs of nil for the previous fiscal year;
     Net earnings of $0.8 million for the fourth quarter of
     fiscal year 2020, compared to a net loss of $1.2 million
     for the comparable quarter of the previous fiscal year;
     and,
     Cash flows from operating activities generated $12.3
     million in cash for this fiscal year, compared to $5.8
     million of cash flows from operating activities
     generated during the previous fiscal year

As highlighted in a recent new equity analyst research report
by Desjardins Securities (the company now has research
coverage by a total of six brokerage firms in Canada and one
in the US), H2O Innovation’s “business has been highly
resilient amid COVID-19 given its status as an essential
service provider. Published results have been solid and the
backlog remains healthy. We have a high degree of confidence
that the company would be able to navigate a potential second
wave.”

H2O Innovation provides solutions for drinking water,
wastewater and water reuse applications in several market
segments, including municipal, oil & gas, and food & beverage.
It designs, manufactures and commissions customized membrane

water treatment systems and provides operation and maintenance
services as well as a complete line of specialty products such
as chemicals, consumables, couplings, fittings and cartridge
filters for multiple markets. The company also designs,
manufactures and implements digital solutions for automation
and control technology.

Water in the “first world” is something that most people take
for granted – it’s clean and readily accessible. But in many
instances, that is a mistaken assumption as water supply and
wastewater disposal systems age and infrastructure upkeep has
not kept pace with population growth. Elsewhere, according to
Hearts and Hands for Humanity, every minute a child under 5
years old dies from water-related disease in Africa. More than
40% of the African population has no access to clean water and
over 60% of the population has no access to sanitation. That’s
just one extreme example on one continent, but it puts the
problem in context.

H2O Innovation does business around the world, but mostly in
North America with almost 20% of business coming from other
global sales. The company has three main business segments –
Operating and Maintenance is the largest at approximately 48%
of revenues, Specialty Products is the next largest at
approximately 30%, with Projects & Aftermarket (Water
Technologies & Services) accounting for the remaining 22%. The
company has a very high percentage of recurring revenue (88%
in Fiscal Q3) – more than double what it was five years ago –
as a result of their business model, which promotes and
encourages strong customer retention.

Source: H2O Innovation

H2O Innovation is now 20 years old and has a market
capitalization of approximately $100 million, so this is not
an overnight success story. The company has grown both through

acquisition as well as organically as it competes in a highly
fragmented market and is a market leader. For example, the
company’s water purification systems use both membrane
technology and reverse osmosis, but are designed to use
multiple suppliers’ systems – allowing customers to choose the
right solution.

Through acquisition and organic growth, the company has built
a strong line of specialty chemical products for membrane
treatment plants and has one of the largest distribution
networks in the industry with global manufacturing
capabilities. All-in-all, the company’s three business
segments provide a complete solution for customers in every
segment and provide for cross-selling opportunities to enhance
company revenue growth.

Looking ahead, the company sees the US as a very large
potential market for growth as the US EPA estimates water
infrastructure investments for the country in the tens of
billions of dollars. Leading the four major regions is
California (>US$25 billion), with Texas, Florida and the most
populous states in the eastern US all requiring $5 – $25
billion of investments. However, globally there will also be
billions spent on desalination infrastructure primarily in the
Middle East and North Africa (MENA) to respond to increasing
demand in the region, providing another market with potential
for H2O Innovation.

While H2O Innovation is not the largest in the market segment,
it is small enough to be nimble but large enough to provide
integrated solutions in a global network. The company
continues to have a strong balance sheet, excellent customer
retention and a market leading reputation for quality,
innovation and service. With a growing backlog of orders, the
company has no shortage of future business which should be
good news for investors looking forward to the potential for
future growth in a world that relies on clean water.

Vital Metals aims to become
the lowest cost producer of
mixed   rare  earths  oxide
outside of China

Demand for secure supply of rare earths
grows with technology and electric
vehicles
We have known about this ”problem” for more than 20 years. You
don’t have to be sinophobic, but if you are a manufacturer who
relies on the sourcing of Rare Earth Elements (REEs) for your
manufacturing outputs, maybe you should be. China still counts
for about 80% of the world’s REE production. They have
dominated the world of rare earths since the late 1990s, but
growing reliance on technology requires more and more of the
somewhat obscure but necessary REE minerals to create our
electronic gadgets and increasingly, electric vehicle and
accessory components.

Enter Vital Metals Limited, (VML: ASX) an Australian listed
global explorer of rare earths. While their initial impact may
be small in the future supply-chain for REEs, they are an
important part of the global movement for the diversification
of REE production from a concentrated source – think
eliminating the OPEC dominance of oil production 50 years ago
and how the world succeeded (mostly) with that.

OK – what is a rare earth element and why are they important?
There are technically 15 REEs, although two others are

generally included as they have similar characteristics. They
are further broken down into “light” REEs that are produced
globally (and are in abundance) and “heavy” REEs that are
produced mostly in China and are in limited supply. Heavy REEs
are in demand for their usage in high technology and clean-
energy applications. The US military is buying these from
China to manufacture – among other things – their armored
vehicles, precision-guided weapons, batteries and night vision
goggles. China is not the enemy, but at the very least the
global supplier is not considered a “friendly”.

REEs are mined. Mining of these elements is usually in remote
and not-so-hospitable locations. Any region that has REE
potential that is close to accessible infrastructure should be
on the list of “mines to be developed”.

Vital Metals has two of these projects, one in Canada and one
in Africa. Their Nechalachco rare earths project in the
Canadian Northwest Territories (NWT) on the edge of Great
Slave Lake is scheduled to commence the production of rare
earth oxide in the first half of 2021. Everything is on track
to meet this production schedule as a result of years of
previous work on the project (and expenditures of more than
$100 million), and the design of the project parameters is
aimed at early cash flow (and low capital costs) of a
production stream that is highly desirable to end users.

On August 22, 2020, Vital Metals announced a binding term
sheet for the construction and operation of a rare earth
extraction plant to produce a mixed rare earth carbonate
product. Significantly, the plant will be located adjacent to
the Saskatchewan Research Council’s (SRC) planned separation
plant which will be able to convert rare earth carbonate mixes
to commercial grade rare earth oxides. Vital’s plant is
expected to be operational in Q3-2021 with feedstock from
their Nechalachco mining project.

Most people do not know that the SRC has almost a decade of

expertise in REEs (associated with uranium mining in
Saskatchewan) and recently announced the construction of a
rare earth processing facility in Saskatchewan, the first of
its kind in Canada. The SRC facility is expected to be
operational in late 2022. It is hard to overestimate the
importance of Vital Metals’ rare earth extraction plant being
built in the neighborhood of the SRC facility.

Source: company presentation

The team at Vital are recognized for their expertise in the
global rare earth element arena including all necessary
elements of mining, processing, geology and marketing. The
devil really is in the details, and Vital’s team has a cost
and time effective strategy to deliver early production and
cash flow. Remote locations require extensive planning and
timing is everything as mining and processing equipment can
only be delivered and setup during certain weather windows.

The company’s market capitalization is only about A$26
million. They estimate that developing the first mine in
northern Canada will require less than A$20 million total
capital cost for their first project (North-T, 100% interest),
some of which can be funded by future generated cash flow.
There is also significant potential upside in the area for
exploration and production expansions, which would likely also
be funded by internally generated cash flow. The company has a
plan to develop the bigger Tardiff Project by 2024, aiming for
a 20 year mine life and leveraging off existing infrastructure
as the “next phase” in the area.

Vital Metals’ second REE project is in Tanzania, with rail and
power infrastructure within approximately 10 km of their 90%
owned Wigu Hill Project. Previous owners spent approximately
$10 million and management is of the view that this is a high
grade, potential world class resource. This asset has an older

NI 43-101 evaluation report attributing to it 3.3 Mt at 2.6%
REO.

The global movement away from China as the main source of rare
earth elements has been underway for a number of years. The
world always knew that as technology developed REEs would
become more and more important, but with the development of
electric vehicles in particular it is now becoming
increasingly apparent that there is a need for more secure and
friendly sources of REEs. Vital Minerals’ aim is to become a
global player in the production of REEs. Their expertise,
projects and potential appear to have put them squarely on
this path.

See also video: Interview with Vital Metals’ Managing Director
Geoff Atkins on their rare earths production and new
extraction facility.

Energy   Fuels ready  with
uranium stockpile and rare
earths plans

Strong financial position allows Energy
Fuels to pay off debentures
It is remarkable to find a company with no sales in a fiscal
period but still able to pay down all remaining corporate
debenture debt. Who is this company and how do they do it?

On September 8, 2020, Energy Fuels Inc. (NYSE American: UUUU |
TSX: EFR) announced that it had delivered notice to the
holders of the company’s remaining debentures of a cash
redemption on October 6, 2020. The holders of the floating
rate convertible unsecured subordinated debentures, due
December 31, 2020 in the amount of CAD$10.4 million, will
receive 101% of the principal and accrued interest. This is in
spite of Q2-2020 results showing no sales for the first six
months of 2020.

Energy Fuels is a uranium and vanadium mining company based in
the United States. Their major production assets are the White
Mesa Mill in Utah, the Nichols Ranch in-situ recovery (ISR)
project in Wyoming, and the Alta Mesa ISR project in Texas.
Energy Fuels is the largest U.S. uranium producer with
substantial producible and near-ready production assets.

Despite the lack of sales in the first six months of 2020, a
review of their balance sheet shows that Energy Fuels is in a
strong financial position. Not counting approximately US$20
million of restricted cash, the company had $28.3 million of
cash, cash equivalents and marketable securities, plus net
inventories of $26.6 million.

So as you ask “How did they do it?” the answer is clearly that
Energy Fuels has kept a strong balance sheet and continue to
meet their obligations in a timely manner. Said President and
CEO Mark S. Chalmers, “Energy Fuels has focused on cleaning up
our balance sheet with minimal impact to our shareholders.”

The uranium market has been challenging for a number of years,
coming off a ten year price low in late 2016. Price movements
have been moribund and would have continued this way, except
that the US Nuclear Fuel Working Group report released on
April 23, 2020 recommended support to the nuclear energy
industry, including establishment of a $150 million domestic
uranium reserve. The impact on uranium prices was immediate,
with the price initially jumping from about $24 to $34 a

pound.

12-Month Uranium Price Movement

Source: tradingeconomics.com

Energy Fuels owns and operates the only fully licensed and
operating conventional uranium mill in the U.S. – the White
Mesa Mill – which has a licensed capacity of 8 million pounds
of U3O8 per year. According to the company, this provides
Energy Fuels with “significant production scalability as
uranium prices recover in the years ahead.” The mill is also
capable of processing for vanadium and the company is now a
leading U.S. vanadium producer.

In April, 2020, Energy Fuels also announced its entry into the
U.S. rare earth elements (REE) market by exploring the
potential production of a rare earth oxide concentrate at its
fully licensed and constructed White Mesa Mill that can be
sold to REE separation facilities. Energy Fuels has brought in
two leading rare earths experts to assist with their
development and implementation of commercial and technical REE
strategies. Energy Fuels’ President and CEO, Mark S. Chalmers,
explained that “Energy Fuels continued to consolidate our
position as the clear leader in U.S. uranium production in
Q2-2020, and we made significant progress in diversifying into
rare earth element production.”

With no contracted sales and a substantial inventory of both
uranium and vanadium, the company is poised to capitalize on

the potential for improved markets in both minerals. In July,
the company resumed production of uranium at the White Mesa
Mill in Utah from alternate feed materials and pond returns.
The company plans to produce within previously stated guidance
of 125,000 to 175,000 pounds of uranium in 2020, building up
and holding inventory of almost 700,000 pounds of uncontracted
/ uncommitted uranium by the end of the year.

Energy Fuels has significant resources that have been
evaluated and are supportive of their production and inventory
targets. Among all of their properties, there is a total
estimated 9.8 million pounds of Measured uranium U3O8, 69.1
million pounds Indicated, and 49.1 million pounds of Inferred
resources. In addition, the company has recorded almost 26
million pounds of Measured vanadium V2O5, 5.8 million pounds
of Indicated resources and 8.5 million pounds of Inferred
resources.

Only weeks away from being free of their debenture debt,
Energy Fuels is in the right place at the right time. Building
uncontracted inventory in uranium in a time when uranium
pricing seems to have fewer headwinds, having support from the
U.S. government, and lower Russian uranium imports into the US
in the longer term is definitely more positive than earlier
this year for the U.S.’s number one uranium producer.

Coffee, gold and copper – the
Triumph triple play

New exploration at Freegold Mountain
looks to add discoveries to existing
resource
Digital is the new normal and the 10 th annual Beaver Creek
Precious Metals Summit is on next week – virtually, of course.
It is a huge conference with more than 200 companies from
around the world, more than half of them being gold explorers
or producers.

It will be a busy three days for investors looking at the
space, and it will be difficult to get investor attention with
so many presenting companies. However, one of the presenters
has been deservedly attracting market attention this year
after successfully raising equity capital in July 2020.

Triumph Gold Corp. (TSXV: TIG | OTC: TIGCF) is a Yukon
(Canada) focused exploration company. Their primary
exploration assets are located in the Dawson Range gold-copper
belt, host to the Casino Copper deposit, the Coffee gold
deposit and the Klaza gold prospect among others, in a road-
accessible, mining friendly jurisdiction.

Location, location, location.

Source: Triumph Gold Corp.
Why should you care? The company’s core asset is the 100%-
owned Freegold Mountain Project. This is a 200 square
kilometer block along the mineralized trend of the Big Creek
Fault, only about 200 km by paved, year-round highway from
Whitehorse YT. This road connects with the (partially
completed) Resource Gateway Road and Mount Freegold Road,
which runs through Triumph’s block. And finally, Whitehorse is
only about 170 km from deepwater ports in Alaska, so access
and egress to this prolific resource area is not an issue.

The company has three NI 43-101 compliant resource estimates
on this block. Driven by the regional and local fault systems,
the porphyry and epithermal sourced gold (plus associated
minerals) potential would make any geologist drool with
excitement. Discoveries at Nucleus, Revenue and Tinta have
Indicated and Inferred Resources in both open pit and
underground mining evaluations with the Resources being pit
constrained. The NI 43-1010 evaluations are dated as of
February 11, 2020 and complete results are best reviewed on
the company’s website, but they are very impressive.

At the end of July, the company announced plans for the 2020
exploration program on the Freegold Mountain Project. This
will be a continuation of the exploration which began in 2016
that has yielded tremendous results. The program was expected
to commence the first week of August, with the appropriate
coronavirus risk mitigation programs in place.

Source: Triumph Gold Corp.
New exploration will include epithermal gold targets of the
Mount Freegold block to the southeast of the Nucleus and
Revenue deposits, as well as shallow gold targets related to
the gold-rich porphyry copper mineralization surrounding
Revenue. Triumph has a new drillhole-constrained 3D magnetic
inversion geophysical model for the area that will partially
guide the program around Revenue.

Highlights of the 2020 program include:

     Testing the Irene-Goldstar Epithermal Au-Ag Corridor
     with well-spaced step-out drillholes from the successful
     2018 drill campaign at the Irene Zone, through the
     Vindicator Zone, culminating at the Goldstar Au-Ag Vein
     on top of Freegold Mountain
     Trenching and inaugural drill testing of the highly
     prospective Melissa Epithermal Zone: a massive multi-

element soil anomaly with similarities to the Nucleus
     Au-Ag-Cu Resource
     Drill testing a shallow, underexplored, geophysical and
     geochemical porphyry copper-gold target south of the
     phyllic-altered Keirsten Zone, as well as a geophysical
     target identified by the recent drillhole-constrained 3D
     magnetic inversion model
     Trenching and drill testing coincident geochemical and
     geophysical anomalies situated along structural trends
     immediately east of the high-grade gold and copper
     porphyry-related Blue Sky and WAu Breccias of the Au-Ag-
     Cu-Mo-W Revenue Resource

The company is well-funded for this exploration program and
has a strong shareholder base with approximately 18% of the
company owned by Newmont Mining Corporation and a 46.5%
institutional shareholder base. The company closed two
successful non-brokered private placement equity financings in
July 2020 for a total of $6.3 million.

With these successful private placements, the company is very
well-funded for an important exploration program on Freehold
Mountain. With three evaluated resource discoveries and
significant potential in a highly prospective and prolific
mineralized area, this is definitely a company that has market
attention and is important to watch.

See also: Drolet Stock Note: Triumph Gold Corp. – Developing
another Yanacocha mineral type deposit in North America
https://bit.ly/31n2U7O

Angkor advances gold property
with new results and money in
the bank

Selected high-grade float samples with up
to 70.7 g/t gold
In spite of the challenges facing many exploration companies,
Angkor Resources Corp. (TSXV: ANK | OTC: ANKOF) has been able
to continue to both break new ground and raise money in these
difficult times. It recently announced new gold exploration
results from their 100% owned Andong Meas property in
Cambodia. The most recent press release highlighted continued
work, with a result of 70.7 g/t gold from float sampling. This
follows their reported results announced on May 27, 2020 that
included a result of 55.4 g/t gold from sampling on their
100%-owned Andong Meas License in Cambodia.

It should be noted that the samples at Andong Meas occur in
clusters, suggesting several different vein segments over a
north to south distance of about 700 meters. These very
promising results have set up a future exploratory diamond
drill program (currently planned at 1,000+ meters) to test the
potential high-grade gold mineralization zones around their
Wild Boar target.

“There is a plethora of prospects on the Andong Meas
property,” said Angkor CEO Stephen Burega, “but we have chosen
to initially focus on the Wild Boar area based on the
excellent results to date.” The Wild Boar prospect was
formerly an area of intensive artisanal mine workings on
several subparallel epithermal veins. In addition to the gold
bearing quartz veins, skarn alteration on the contact between
granites and marbles in the area was observed. Definitely the

right place to be exploring for gold, especially since ‘Andong
Meas’ in the local language means ‘Well of Gold‘.

According to Angkor technical adviser Dr. Kaihui Yang, the
“high grade gold mineralization found so far in Andong Meas
has the characteristic of an epithermal gold system that could
sit on a porphyry system underneath.” This is highly relevant
to shareholders, as much of the Andong Meas property has yet
to be explored. While the entire Andong Meas license has been
the subject of an aeromagnetic survey, satellite imagery
geological interpretation, reconnaissance field truth mapping
and multi-element stream sediment geochemical survey, there
still remains work to be done – with the potential for
additional discoveries – on this single 100% owned license of
187 square kilometers in Cambodia.

Work is planned to resume in November after the end of the
rainy season. The company currently has staff working in
Cambodia including the VP Exploration who lives there full
time, so the work program will not be hampered by any of the
now common coronavirus travel restrictions. In addition to the
planned diamond drill program, a detailed surface mapping
program is in the works along with an auger and trenching
program covering the entire area at Wild Boar with a 25 meter
sample spacing and a 50 meter line spacing and pit testing to
further test the depth of the bedrock. The company is fully
staffed to conduct its future exploration program, and
recently successfully raised CDN $1.8 million in an
oversubscribed private placement in June to keep the
exploration program running.

Property portfolio includes oil and gas
Angkor has operated in Cambodia for over 10 years, with a very
large land package of approximately 983 square kilometers over
five licenses, targeting precious and base metals. In
addition, Angkor has government approval for a 7,300 square
kilometer oil and gas license, in a vastly underexplored basin

which includes the Gulf of Thailand. Their license at Block
VIII has evidence of oil seeps on the block and is on the edge
an oil-prone area where an offshore oil discovery is currently
under development in Cambodian waters.

Angkor’s oil team hopes to be back in Cambodia once
coronavirus-related travel restrictions are lifted to complete
negotiations on the Production Sharing Agreement contract
terms for the oil and gas license with the Cambodian
government.

With their recently oversubscribed, non-brokered private
placement raising CAD$1.8 million, Angkor is well-funded to
advance the next phase of the exploration program on Andong
Meas and continue to demonstrate the resource potential of
this valuable asset.