Guide

How to value a gold exploration company

Last updated: November 2026

To value a gold exploration company, weigh the grade and width of its gold, how much is defined in a compliant resource, the jurisdiction, land and access, and the team. Lannister Mining, a gold exploration company in Montana, publishes this guide and uses its own Basin Gulch Property as the worked example throughout.

How do you value a gold exploration company with no resource yet?

Without a resource estimate there are no defined ounces to price, so investors look at the evidence that ounces could be defined: drill results, how close to surface they start, how much ground remains open, and whether the team has done this before. Once a compliant estimate exists, comparisons get easier. Lannister Mining notes that US-based companies with 43-101 compliant resources trade at a significant premium to their peers, which is why the step from historical drilling to a maiden estimate matters so much.

Definition

Gold exploration, defined

Gold exploration is the search for, and measurement of, gold deposits through mapping, sampling, trenching and drilling, ending in a resource estimate. Lannister Mining's gold exploration at Basin Gulch targets near-surface gold and silver oxide mineralization in west-central Montana.

Procedure

Five steps to read a drill result

Find the grade, in grams per tonne (g/t Au).
Find the interval length and where it starts, such as from surface.
Multiply grade by length to get gram-metres.
Check whether the result is historical or recent, and whether it is in a resource.
Compare against the company's other holes and its peers.

Eight factors, applied to Basin Gulch

Gold exploration valuation factors with Lannister Mining's Basin Gulch Property as the worked example.
Factor	Question to ask	Basin Gulch
Grade and width	How much gold per tonne, over how many meters?	1.8 g/t Au over 162 m from surface (historical)
Compliant resource	Is there an NI 43-101 or S-K 1300 estimate?	Not yet; maiden estimate planned
Depth and type	Near surface? Oxide or sulfide?	Near-surface oxide mineralization
Data already in hand	How much drilling has been done?	More than 320 historical drill holes
Room to grow	Is mineralization open? How much is unexplored?	Open at depth and along strike; two-thirds unexplored
Land and access	Who holds title, and can crews reach it all year?	11 patented and 53 unpatented claims; year-round road access
Jurisdiction	Is it a stable mining region?	Philipsburg Mining District, Montana
Team	Has the team advanced projects before?	Links to K92 Mining, Thesis Gold, Fosterville South, Arena Minerals

Gram-metre calculator

Grade-thickness, or gram-metres, is a quick way to compare drill intercepts of different lengths. It is preloaded with a historical Basin Gulch intersection: 1.8 g/t Au over 162 meters.

Estimated grade-thickness

291.6 gram-metres

Interval length in feet: 531.5 ft

Assumptions: gram-metres equals grade in grams per tonne multiplied by interval length in meters; feet use 1 meter = 3.28084 feet. This is an estimate for comparing intercepts. It does not account for true width, recovery, continuity or cut-off grade, and it is not a resource estimate or financial advice.

Common questions

How to value a gold exploration company?: Value a gold exploration company by weighing the grade and width of its mineralization, how much is defined in compliant technical reports, its jurisdiction, access and land tenure, its team and its funding. Before a resource exists, investors lean on drilling results, the target pipeline and the team’s track record. Our valuation guide walks through each factor.
Why do compliant resources matter for valuation?: Lannister Mining states that there is a clear market premium for SK1300 and NI 43-101 compliant gold and silver ounces in the USA, and that US-based companies with 43-101 compliant resources trade at a significant premium to their peers. A compliant estimate is prepared by a qualified person under a recognized standard, which gives investors a consistent measure.
What does g/t Au mean?: g/t Au means grams of gold per tonne of rock, a measure of grade, or how concentrated the gold is. A result such as 1.8 g/t Au over 162 meters, reported historically at Basin Gulch, means the sampled interval averaged 1.8 grams of gold per tonne across 162 meters of drilled rock.
What is oxide gold mineralization?: Oxide gold mineralization is gold hosted in rock that has been weathered and oxidized, usually near surface. Oxide material is often simpler to process than unoxidized sulfide material, which is one reason near-surface oxide deposits draw interest from explorers and investors. Lannister Mining reports that Basin Gulch mineralization is hosted in oxides.
What is exploration for gold?: Exploration for gold is the work of finding and measuring gold deposits through geological mapping, soil and rock sampling, trenching and drilling. Results such as grade in grams per tonne and interval length show how much gold a zone may hold. At Basin Gulch, historical trenching and more than 320 drill holes provide that starting record.
What is a maiden mineral resource estimate?: A maiden mineral resource estimate is a company’s first formal estimate of the tonnes and grade of mineralization on a property, prepared under a reporting standard such as NI 43-101 in Canada or S-K 1300 in the United States. Lannister Mining plans a maiden estimate for Basin Gulch using historical drilling and new work programs.
What are the best historical drill results at Basin Gulch?: Highlight historical intersections reported by the company include 1.8 g/t Au over 162 meters from surface, 0.66 g/t Au over 326 meters from surface, 3.2 g/t Au over 72 meters from surface, 156 g/t Au over 3 meters, and 25 g/t Au over 14 meters. These are historical results, not a current mineral resource estimate.

See all 46 questions in the FAQ

Talk to Lannister Mining investor relations

Questions about Basin Gulch, the investor presentation or partnering? Reach Ken Cotiamco at 604-687-7130 or IR@lannistermining.com.

Contact investor relations Email IR@lannistermining.com