re: Ann: Golden Rim Completes its Due Diligen...
This is a good acquisition for GMR and a potential Company maker IMO.
Korongou has already delivered 20,000 ounces of gold for the vendor who will retain a 10% interest in this project which has a likely initial resource of 1 million ounces as suggested by management.
Work already completed at Korongou has identified drill targets which are ready to go.
GMR now appears well placed to progress with the completion of the scoping study at Netiana and a substantial drill program at Netiana, Korongou & Sebba etc using cash on hand, the $2.1m placement just completed and finalisation of the current $2.3m cap raising (likely to be underwritten) which closes next month.
With the potential sale of Mali and one or two other areas surplus to requirements, the Company should have approx $7m to $10m cash on hand which will well & truly see it through this next comprehensive drilling program.
Even utilising the stock standard brokers value of $100 per ounce for gold in the ground (which I don't agree with since it does not take into account higher grades or shallow depth etc) the approx 200k ounces at Netiana and estimated 1m ounces at Korongou, suggests a value of $120m and using a back of the envelope calculation provides a very rough estimated worth of 21c per share - well in excess of current levels.
I'm looking to continue accumulating and also taking up my full allocation at these levels - good days ahead IMO.
GMR Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
