Is this company undervalued ? Guyana Goldstrike Inc. (TSX.V: GYA) (OTC: GYNAF) is focusing its efforts on near-term production at its Marudi Gold Project in the southwest part of Guyana about 230 kilometers from the town of Lethem. The company acquired a 100% option to purchase the project in 2016 that spans about 13,000 Acres (5,300 ha / 53 sq. km) in the mining-friendly nation.
Marudi is in what is known as the Guiana Shield, which underlies Venezuela, Guyana, Suriname and French Guiana, as well as parts of Colombia, and Brazil. Although considered under-explored, the Guiana Shield is known to contain some 110 million ounces of gold.
The fully-permitted project has all the necessary infrastructure, including all-season road access and a mining camp thanks to work from previous operators, including, Noranda, Sutton Reources, Vannessa Ventures and Guyana Frontier Mining Corp, whose work was partially funded by Teck Resources.
Marudi is quite differentiated from most developmental mines in that is has 3 gold bearing targets, the alluvial areas, the saprolite overburden and the deeper hard rock and it is already producing small amounts of gold through a cooperative agreement between Guyana Goldstrike’s wholly-owned subsidiary, Romanex Guyana Exploration, and local miners. Per the agreement, local miners have access to the property under the guidance of the company, for which they may work the alluvial areas (i.e. surface areas, streams, rivers, and historic workings) and tailings from prior gold production. For this, the local miners pay Romanex a 10 percent gold royalty on all gold produced.
The company’s president and CEO Peter Berdusco refers to the saprolite as “soft” gold and a key stepping stone to provide some cash flow while it proves out the hard rock ounces deeper in the ground. While the local miners do their thing, Guyana Goldstrike will be spending dollars on working the saprolite, establishing baselines and bulk sampling.
Marudi has been subject to multiple historical resource estimates over the years that all indicated gold mineralization. More than 42,000 meters of drilling has been performed on the property in the last three decades, consisting of 141 holes at a cost of more than $30 million. The 2018 historical hard rock estimate in a National Instrument 43-101 compliant report showed the Mazoa Hill zone (that is one of two zones drilled on the property) to contain just under 350,000 ounces of gold and as well Mazoa Hill is open at depth and to the NE, showing the potential for drilling out additional ounces.
The company’s primary strategy is to increase the hard rock resource estimate by widening the two main zones (Mazoa Hill and Marudi North) that remain open in different directions.
As it stands, investors will be looking for news from initiatives to advance the Marudi property towards commercial production.
The bottom line is that the company is undervalued, with only a $12 million market cap, has an experienced leadership team (120+ years combined); a large project with substantial gold resources, full permitted mining camp and established infrastructure, along with a strong potential to validate and add more gold ounces; and, most importantly, cash in the bank between a $3,475,000 million capital raise and royalties from local miners.
www.guyangoldstrike.com
Marudi is quite differentiated from most developmental mines in that is has 3 gold bearing targets, the alluvial areas, the saprolite overburden and the deeper hard rock and it is already producing small amounts of gold through a cooperative agreement between Guyana Goldstrike’s wholly-owned subsidiary, Romanex Guyana Exploration, and local miners. Per the agreement, local miners have access to the property under the guidance of the company, for which they may work the alluvial areas (i.e. surface areas, streams, rivers, and historic workings) and tailings from prior gold production. For this, the local miners pay Romanex a 10 percent gold royalty on all gold produced.
The company’s president and CEO Peter Berdusco refers to the saprolite as “soft” gold and a key stepping stone to provide some cash flow while it proves out the hard rock ounces deeper in the ground. While the local miners do their thing, Guyana Goldstrike will be spending dollars on working the saprolite, establishing baselines and bulk sampling.
Marudi has been subject to multiple historical resource estimates over the years that all indicated gold mineralization. More than 42,000 meters of drilling has been performed on the property in the last three decades, consisting of 141 holes at a cost of more than $30 million. The 2018 historical hard rock estimate in a National Instrument 43-101 compliant report showed the Mazoa Hill zone (that is one of two zones drilled on the property) to contain just under 350,000 ounces of gold and as well Mazoa Hill is open at depth and to the NE, showing the potential for drilling out additional ounces.
The company’s primary strategy is to increase the hard rock resource estimate by widening the two main zones (Mazoa Hill and Marudi North) that remain open in different directions.
As it stands, investors will be looking for news from initiatives to advance the Marudi property towards commercial production.
The bottom line is that the company is undervalued, with only a $12 million market cap, has an experienced leadership team (120+ years combined); a large project with substantial gold resources, full permitted mining camp and established infrastructure, along with a strong potential to validate and add more gold ounces; and, most importantly, cash in the bank between a $3,475,000 million capital raise and royalties from local miners.
To learn more about the Marudi Gold Project visit www.guyangoldstrike.com