Carson Block on new long position: Snowline Gold a true tier-1 discovery, will unlock gold district

Core Viewpoint - Snow Line is considered a true tier one gold discovery that has the potential to unlock a significant gold district in the Yukon, with reliable resource estimates that do not raise concerns about accuracy [1][2][9]. Company Insights - Snow Line's current market capitalization is slightly above 2 billion CAD, and it is anticipated that a major mining company will acquire it within the next three years, potentially for no less than 4 billion CAD and possibly up to 10 billion CAD if it remains independent for longer [4][5]. - The project is viable at a gold price of 1,800 USD per ounce, with a projected net present value (NPV) exceeding 3 billion CAD even if gold prices decline significantly [6]. Industry Context - The mining industry has seen a drastic reduction in gold discoveries, with only 60 million ounces expected in the 2020s compared to 1.7 billion ounces in the 1990s, highlighting the increasing need for gold and the importance of acquiring new deposits [7][8]. - Major mining companies are focusing on acquiring smaller companies like Snow Line, as they have shifted away from greenfield exploration due to financial constraints and a focus on maintaining dividends [6][11].