Guyana
Goldstrike Inc. (GYA:TSX.V; GYNAF:OTC; 1ZT:FSE) recently announced a major financing with Zinjin of China for a
total of $3.475 million for work on GYA's Marudi gold project in southern
Guyana. The private placement was for 13.9 million units at $0.25 with a full
warrant at $0.35 good for two years. On a fully diluted basis, the investment
would represent 39.3% of Guyana Goldstrike once the warrants have been
exercised.
Guyana Goldstrike is a young company that did a deal to acquire Roanex Guyana Ltd., holder of the
Marudi Mountain mining license in Guyana. The project has had over $30
million USD spent on it since 1985 including 42,000 meters of diamond
drilling in 141 holes so far. It comes with a 20-year mining permit with an
established camp and infrastructure in place. Local alluvial miners are
working parts of the property with the permission of the company and that
generates about $250,000 a year in revenue.
About 5% of the project has been explored with only two zones drilled. The
Mazoa Hill zone comes with a current 43-101 showing over 259,000 ounces
of gold indicated at 1.80 g/t and 86,200 ounces gold inferred at a grade of
1.60 g/t. The gold is found as alluvial, weathered saprolite and in hard rock
form. The company is targeting between 1 and 2 million ounces.
Now that the financing has been completed, the company plans on hitting
the ground running. They are working on a program to generate drill targets
for an upcoming diamond drill program and have scheduled an airborne
geophysical survey of the entire property. A trenching and surface sampling
program is in progress for newly discovered mineralized zones.
It's going to take either a tailwind from the price of gold or major
progress on the ground to get the shares moving. At today's prices, the
company has a market cap of about $8 million USD and just over $3 million in
the bank. They are well-financed and as time progresses and more news comes
out, liquidity should increase in the shares. For now you have to make an
appointment to buy or sell shares even though the price is 20% lower than the
cheapest financing completed. With an existing 43-101 in place, a floor
should be under the price about where it is now, representing gold at $23 an
ounce USD which is about right. If you subtract the cash on hand investors
are paying $14 an ounce for gold in the ground and getting the upside for
free.
Guyana Goldstrike is an advertiser. I have bought shares in the open
market and that gives me a bias. Please do your own due diligence.
Guyana Goldstrike Inc
GYA-V GYNAF-OTCBB $0.21 (Mar 21, 2018)
52.4 million shares
Guyana Goldstrike website
