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TORONTO - Fury Gold Mines Limited (TSX and NYSE American:FURY), a mining exploration company with a market capitalization of $85.2 million and strong financial health according to InvestingPro data, announced Wednesday initial drill results from its Ninaaskumuwin lithium discovery at the Elmer East project in Quebec’s Eeyou Istchee James Bay region.
The maiden drilling program, consisting of 825 meters across five holes, targeted a spodumene-bearing pegmatite outcrop that previously yielded surface samples containing up to 3.92% lithium oxide (Li2O). The company’s solid financial position is reflected in its healthy current ratio of 3.83 and minimal debt, with InvestingPro analysis showing more cash than debt on its balance sheet.
Key results include intercepts of 32.35 meters of 1.16% Li2O from hole EE24-003 and 22.48 meters of 1.19% Li2O from hole EE24-002. Individual sample grades reached as high as 3.70% Li2O.
The drilling confirmed vertical continuity of lithium mineralization to 150 meters below surface, with the mineralized pegmatite remaining open at depth and along strike.
The Ninaaskumuwin discovery is located approximately 60 kilometers north of the "km 381" rest stop on the Billy Diamond highway, where infrastructure including accommodation and power is available. The site is situated about 50 kilometers north of Rio Tinto’s Galaxy Lithium project.
"We are pleased with the positive drill results out of the Ninaaskumuwin lithium discovery from our newly acquired Elmer East project in Quebec," said Tim Clark, CEO of Fury, in a statement based on the company’s press release.
The Elmer East project covers approximately 45,735 hectares. Geophysics and geological mapping indicate the spodumene-bearing pegmatite has a potential strike length of up to 3.8 kilometers.
According to the company, the pegmatite is composed of quartz, plagioclase, potassic feldspar, and spodumene with smaller amounts of muscovite, tourmaline, and garnet. The spodumene appears as light greenish-white crystals averaging 2 x 5 centimeters and reaching up to 2 x 15 centimeters.
Fury Gold Mines acquired the property earlier this year through its purchase of Quebec Precious Metals. The stock has shown strong momentum with a 36% year-to-date return, though InvestingPro analysis suggests the shares are currently fairly valued. With a beta of 1.35, investors should note the stock’s higher volatility compared to the broader market. InvestingPro subscribers have access to over 30 additional financial metrics and insights about Fury Gold Mines.
In other recent news, Fury Gold Mines Ltd. has announced a strategic acquisition of Quebec Precious Metals (QPM). The deal involves exchanging Fury common shares for all outstanding shares of QPM, with QPM shareholders receiving 0.0741 common shares of Fury for each QPM share. This exchange rate values each QPM share at C$0.04, representing a 33% premium based on recent closing prices. Conditional approvals from both the Toronto Stock Exchange and the NYSE American have been secured, and a QPM shareholder meeting is scheduled for April 22, 2025, to finalize the merger. H.C. Wainwright has maintained a Buy rating on Fury Gold Mines, with a price target of $1.20, reflecting confidence in the acquisition’s potential benefits. This endorsement comes as the analyst anticipates the merger will be completed later in April 2025. The no-objection letter obtained by QPM has been a critical step in advancing the transaction. These developments indicate a significant strategic move for Fury Gold Mines.
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