Load up on TSXV: GOD @$0.015. Should move upGoldrush Focus for Ronguen Gold Deposit to be Higher Grade
Commented Len Brownlie, President and CEO of Goldrush: "Our internal review of the economics of developing the Ronguen deposit suggest that the best way to increase shareholder value in the current economic climate is to develop a smaller scale, lower capital cost open pit mine that targets the higher grade oxide mineralization of the deposit. We are hopeful that a PEA will demonstrate robust economics for this approach."
Goldrush's management has recently re-evaluated the Ronguen deposit with a view to developing a lower capital cost, small scale open pit, heap leach mine that would target near-surface, higher grade, oxide gold mineralization. The Company intends, subject to financing, to initiate a Preliminary Economic Assessment ("PEA") to establish the potential economic viability of a heap leach operation that would target 3 to 4 million tonnes of mineralization at a range of head grades from 1.5 to 2 g/t Au over a 3 to 4 year mine life (These potential quantities and grades are conceptual in nature and do not reflect a current mineral resource or an economic analysis.). As detailed below in separated categories, the Ronguen deposit has current Measured and Indicated mineral resources of 8.487 million tonnes at a grade of 1.22 g/t Au. Management anticipates that a combination of a focus on higher grade mineralization with accompanying reductions in the capacity and cost of processing and operating equipment, and mine footprint, along with the proximity of the deposit to established infrastructure and paved roads will help to provide an attractive development project.
Strengthening Gold Prices To Benefit Goldrush Resources
Safe haven bets have returned since the start of this year as investors have been spooked by concerns over the situation in the euro zone and a slowdown in China. Not surprisingly, one of the beneficiaries of the increasing safe haven bets has been gold.
Gold prices have climbed to around $1,275 U.s. an ounce since the start of this year. Importantly, prices could remain strong as investors pull money out of risk assets. This bodes well for gold miners, including junior mining companies like Goldrush Resources Ltd. (TSX-Venture:GOD).
Based in Vancouver, B.C., Goldrush is primarily involved in the acquisition and exploration of mineral property interests in the West African nation of Burkina Faso. The company is engaged in the exploration of gold in the West African nation.
Goldrush has been engaged in exploration activities in Burkina Faso since 2006. Last year, the company sold three of its permits in the country to international mining companies, boosting its cash reserves.
One of the permits Goldrush sold last year was the Pompoi exploration permit. The company sold the Pompoi permit, along with the rights to the adjoining Banguiou exploration permit application for a consideration of $435,000. In addition, the company will also receive a fixed net smelter return royalty of 1.5% on gold sold from the Pompoi and Banguiou permit for a period of 15 years.
Following the sale of the Pompoi permit in April last year, Goldrush also executed a definitive agreement for the sale of the Ronguen Gold project to Nord Gold N.V. The agreement was signed in June last year and under the terms, Goldrush agreed to sell Nordgold all of the shares of its 100%-owned subsidiary, Goldrush Burkina S.A.R.L. Goldrush Burkina is the owner of two mineral permits that are part of the Ronguen Gold project.
In November last year, Goldrush also announced a change in its senior management, with the appointment of Scott Hamilton as Chief Financial Officer (CFO). Hamilton has nearly two decades of experience with junior mining and industrial companies.
Commenting on Hamilton’s appointment, Goldrush President and CEO Len Brownlie had this to say, "We are very fortunate that Scott has made the transition to Chief Financial Officer for the Company where his extensive experience in junior company accounting will be a tremendous asset to the Board as we determine the best path forward for Goldrush following the successful $4.25-million U.S. sale of the Ronguen gold deposit."