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Research Flash - Mayfair Gold Corp. (MFG:TSXV,$0.42|BUY $2.10 TARGET) Mayfair Reports Sizable Resource Update – More To Come

Yesterday, Mayfair Gold Corp. announced an updated mineral resource estimate at the Company’s 100% controlled Fenn-Gib Gold Project, located in the Timmins region of Northeast Ontario. The resource includes a pit constrained indicated mineral resource of 3.06 Moz and an inferred resource of 0.31 Moz. We are impressed with this result as this update only includes 67km of the 110km drill program that is budgeted for this year. The Company plans to release another resource update including the remainder of the drill program in Q2/23.


Today’s resource update increased the pit constrained indicated resource by 47% to 3.06 Moz (up from 2.07 Moz previously). The average grade of the resource is 0.81 g/t Au at a 0.35 g/t cut-off grade. Though the grade is relatively low, we note that there exists a high-grade starter pit of ~500 Koz oz at 1.60 g/t which will bring cashflows forward and pay off the Capex quickly. As depicted in Table 2, at higher cut-off grades, the resource is still of substantial size at 2.0 Moz at 1.17 g/t. We also anticipate the grade to increase in the next resource update as the grade is increasing at depth. We highlight that 90% of the resource is in the indicated category which means the Company can progress straight to a feasibility level study. 


The Company also reported a maiden underground resource, albeit, small. The underground inferred resource totals 104 Koz at an average grade of 3.2 g/t Au at a 2.5 g/t cut-off.


Located in an infrastructure rich area, surrounded by tier one producers, Mayfair looks to aggressively develop its Fenn-Gib Project towards an economic study in 2023. We see MFG as an undervalued opportunity that holds an asset that is of high probability to become a producing mine and potentially an attractive acquisition target.



·Resource Growth: MFG is targeting an open pit resource of 3.5 Moz in the next resource update in Q2/23

·Attractive Takeover Target: Being surrounded by both exploration and producing companies as well as holding an orebody that requires minimal startup capex, we see MFG as a great acquisition target

·Compelling Valuation: MFG currently trades at an EV/oz of $28/oz which is on the low end of its peer group of ~$40/oz



  • 43,000m of drilling – Ongoing

  • Resource update targeting 3.5 Moz (open-pit) – H1/23

  • Economic Study (Pre-Feasibility Study) – 2023

20221018 - M Partners - MFG - Flash
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