I recently had a discussion on twitter with @p1r473, the person behind a document that is tracking the ounces and market cap of silver and gold junior miners. https://t.co/ouiJHv18JP?amp=1. He believes that Chesapeake Gold Corp is a great way to play the precious metals bull market going forward (it’s number 2 in his document). Chesapeake is a gold- & silver focused company with one of the largest resources in the world.

Their main asset Metates has 2P Reserves of > 18 moz Au and > 500moz Ag (0,15 cutoff), they have other assets but this one I will focus on here. Market cap is slightly below $300 m, that gives one of the lowest enterprise values per oz in the whole sector:

While peer group average enterprise value is at $65/oz, CKG is at $10/oz. This low valuation could maybe be explained by the large capex it would take to get into production, that however is about to change. With the recent acquisition of Alderley Gold Corp, the company brings in a new approach of how to mine this deposit:

Transaction Reinvents Metates as a Low Capital Cost, Sulfide Heap Leach Project using the Alderley Technology.
Heap leaching of Metates sulphides provides for superior economics with significantly lower development costs.

By using this new approach capex will be significantly lower and could therefore give a huge boost to current valuation. The numbers remains to be seen and the company plans to make a new preliminary feasibility study later this years. The project already has great numbers so a lowering of capex would probably make them exceptional. Here are numbers from previous high capex PFS:

Average annual gold production of 700,000 ounces for the first 10 years of Phase 2operations (years 5-14 ) 
Average annual production of 14 million ounces silver and 115 million pounds of zinc for the first 10 years of production

Another great thing with the heap leach approach is that is that it will reduce the environmental footprints and therefore makes the permitting process more smooth. In best case scenario this project begins construction in 2025, and starts producing in 2026. Management owns 22% of the company, Sprott 13% and Sun Valley hold 11%, so very good shareholder base.