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Message: SGC, GIX, SPA from Peter Grandich Blog
Grandich Client Sunridge Gold
Yesterday, Sunridge Gold announced an updated resource calculationfor the high grade Adi Nefas zinc-gold-copper deposit on their Asmara Project in Eritrea. The new resource which is part of a current Prefeasibility Study includes 1.8 million tonnes with very impressive grades; 10.05% zinc, 3.3 g/t gold, 1.78% copper, and 115 g/t silver. Adi Nefas is one of 4 deposits on the Asmara Project and included in the Prefeasibility Study and it should provide a high grade feed to the large 70 million tonne Emba Derho copper-zinc-gold deposit located nearby.
Sunridge has now updated 3 of the 4 resources on the Asmara Project as part of the current study and the 4th, Gupo gold deposit is expected to be updated in the next few weeks. All 3 so far demonstrate very strong resource number in terms of grade and size and the total contained metals (Indicated and Measured) are as follows:
- 1.26 billion pounds of copper
- 2.55 billion pounds of zinc
- 882 thousand ounces of gold
- 28 million ounces of silver
Upon issuing the new resource for the Gupo Gold deposit (expected in early March) the stage should be set for completion of the Prefeasibility Study in mid-April. The Company should convert the updated resources to reserves and strong economic numbers are expected in terms of NPV, IRR, etc…. They also should continue straight into a Bankable Feasibility Study. I expect the results of the study to be the most important single piece of news yet to be issued by Sunridge and can result in a re-rating of the share price. I highly recommend examining the company’s assets very closely in advance of completion of the study as I believe the study can show the NPV to be multiple times higher than the current market cap of Sunridge.
With a New Resource Estimate Pending, Geologix Heightens Tepal Project Growth Potential with Geophysical Results
Today Geologix Explorations Inc. (TSX: GIX) announced results from a property-wide airborne geophysical survey completed late last year at its 100% owned Tepal Project in Mexico. Results of the survey have identified multiple new prospective exploration targets that the Company expects to drill later this year.
Highlights of the survey include:
- Seven strong geophysical targets identified throughout project area
- Three priority targets with coincidental gold, copper, silver, and molybdenum in geochemical or drilling results
- Multiple anomalies located within the same structural corridor as the North, South, and Tizate zones
- Follow-up evaluation being conducted over several targets to delineate priorities for a follow-up drill program
The Tepal project already has a sizable gold and copper resource of 1.6M oz gold and 725M lbs copper in a NI-43-101 Report, and that resource is being updated (and possibly expanded) to Measured & Indicated categories in the coming weeks. In the meantime however, these latest geophysical results could be a positive game-changer for the project, as they reinforce the project’s growth potential by offering multiple new highly prospective areas for follow-up drilling and possible new discovery. It’s also important to recognize that it was this same type of exploration technique (geophysics and geochemistry) that lead to the Company’s discovery of a new zone on the project in 2010, the Tizate Zone, which added approximately 50M tonnes to the projects resource in 2011.
Three of the latest targets have seen preliminary ground work or prior drilling that indicated gold and copper mineralization at surface, and are therefore considered priority drill targets. These new drill target areas range in size from 3 km by 3 km to 1 km by 1 km and appear to have similar geophysical & geological characteristics to those identified over the North, South, and Tizate zones, where in addition to favorable geology and geochemistry, structural controls intersect, which has proven to be an important component. All seven of these new areas are being followed up with detailed soil sampling, mapping, and trenching to delineate targets in advance of a systematic follow-up drill program.
As the Company completes the pending new resource estimate and advances toward pre-feasibility by the end of June, these latest results give the Tepal project an interesting element of exploration potential that may have been being overlooked by the market.
Spanish Mountain has announced the update on the Feasibility Study timeline and the current drill program for its flagship Spanish Mountain Gold Project in BC. The driving force behind the news is the discovery of a new gold zone (called the Phoenix Zone) announced by SPA in December 2011. Since this discovery could potentially add more gold ounces and value to the project as a whole, it makes sense for SPA to re-jig its strategy moving forward.
SPA originally planned to publish a Prefeasibility Study (PFS) for the project later this year and follow that with a FS next year. Now SPA intends to go ahead with a FS without first finishing the PFS but hopes to provide a technical report during the third quarter quantifying the impact of the Phoenix Zone. SPA referred to this as the “optimal strategy” as it should quantify the new discovery and stick to the original project development timeline without getting slowed down by the on-going and substantial work at the Phoenix Zone. I think this strategy makes sense as it fast tracks the work on the new deposit without slowing other components down or delaying the overall project timeline.
Electing to bypass PFS and charging ahead to Feasibility is quite encouraging and shows management is confident with the merits of this project thus far. The fact that the majority of studies conducted to date are near or at a prefeasibility level of detail lends support to their confidence in this project.
Another cause for optimism: if the current drill program delivers the desired results, it can convert part of the multi-million ounce inferred resource into the already sizable Measured & Indicated categories and define a resource in the new Phoenix Zone. This can extend the project mine life, improve the project economics when all said and done (and when the FS comes out next year).
All in all this should be seen as a positive step in the development of Spanish Mountain. As Brian Groves, CEO pointed out in the NR it is very unusual for a company to discover a new gold zone with such potential at this stage of its development and still have the financial capabilities to define it.
It is going to be a very interesting year for this junior mining company who now seems to have the best of both worlds: boasting both exploration potential as well as an advanced development project. I myself can’t wait to see how many more ounces can be added to this already impressive multi-million ounce gold resource and how robust the project is….
Posted in A Grandich Company All Posts Base Metals Canadian Stocks Copper Exploration Shares Gold Mining Shares Precious Metals Spanish Mountain Gold by jojo.
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