RE:GYA.V - Analyst Coverage With A Buy Rating at $0.45 Guyana Goldstrike has a preliminary resource estimate on one mineralized zone discovered to date on the property. We believe that the preliminary resource estimate is conservative, because it only considers one of the areas within the Marudi Project.
At least 2 additional areas, Marudi North Area and Paunch Area, should be considered in estimating the resources in order to account for potential upside.
Moreover, the 3 potential mineralized areas together account for less than 5% of Guyana Goldstrike’s land package.
In our view, an area of this size requires more than 5% exploration to estimate its resource. Because of the sheer size of the unexplored regions we have, in Table 2, calculated what the value per share of Guyana Goldstrike could be if the resource estimate were to increase by 25%, 50%, 75% and 100% from the current level.