JV Partner's Spending On Asset Already 60%

Source: Richard Gray 03/25/2025

A tentative 2025 work plan has been made for this gold project in the Abitibi Greenstone Belt, noted a Cormark Securities report.

Bonterra Resources Inc.’s (BTR:TSX.V; BONXF:OTCMKTS; 9BR:FSE) first 2024 drill results are in from the Gladiator SW target, and field and exploration programs are slated for this year, at its Phoenix JV project in Quebec’s Abitibi Greenstone Belt, reported Richard Gray, Cormark Securities analyst, in a March 20 research note.

“For risk-tolerant investors looking for cheap ounces in a rising gold price environment, Bonterra remains an attractive addition to the portfolio,” Gray wrote.

204% Return Potential

Bonterra was trading at the time of the report at about CA$0.23 per share and at an enterprise value per ounce of US$23/oz compared to US$48/oz, the average of developers in Cormark’s coverage universe.

Cormark’s target price on the Canadian explorer is CA$0.70 per share, thus implying a 204% return for investors.

Bonterra is a Buy.

New Mineralized Hole

Last year, 13 holes over 5,700 meters (5,700m) were drilled at the Gladiator SW target at the Phoenix JV project, along the Barry Shear zone. The first result from the area is from hole PHZ-24-0019. It showed 1.5m of 20.3 grams per ton gold.

JV Partner Invested

Gray reiterated Bonterra’s joint venture agreement with Gold Fields Ltd. (GFI:NYSE; GFI:JSE) and highlighted the latter’s progress so far.

Gold Fields may acquire a 70% interest in Phoenix JV by spending CA$30 million (CA$30M) on work there over three years. It must spend a minimum of CA$10M annually. Already, Gold Fields has spent about CA$18M on the project.

“Gold Fields has shown a material commitment to the Phoenix JV, with 60% of the total capital commitment invested in the agreement’s first year,” Gray pointed out.

A total of 65,000m has been drilled at Phoenix JV. A 2021 mineral resource estimate showed the Gladiator and Barry deposits together contain 2,760,000 ounces of gold.

2025 Plans Being Made

Gray relayed what is known so far about the work plan for Phoenix JV this year. A gravity airborne survey and related fieldwork are slated to be done during the summer. A roughly 15,000m drill program, using three to four diamond drill rigs, is to follow. It is likely that drilling will be concentrated on Barry Shear, Gladiator NE and Titan, but targets have yet to be finalized.

“The results of the 2025 program will be significant for the development of Barry and Gladiator as Bonterra seeks out a strategic partnership with the experienced senior producer,” Gray wrote.

Stock Details

Bonterra has 166.2 million (166.2M) basic and 209.3M diluted shares outstanding. Its market cap is CA$38.2M. Its 52-week range is CA$0.19–0.34 per share.

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