#1 the Greenstone gold belt they are in is 40% in Mali and 60% in Senegal ...... Mali has a 20Moz mine, a 14 Moz mine + several other 10+ Moz mines
#2 Senegal is the most stable democracy in West Africa (which is why AngloGold has it's regional HQ in Dakar)
#3 Senegal is pro mining = massive tax breaks for producers (far better than Aus)
#4 Senegal is under explored and currently TGZ is the only producer
#5 The major tenement owners are:
TGZ has 1,488 sq km Rand Gold JV with IAMGOLD on 343 sq km- 3 Moz discovery +/- 20km away and Bassari permits cover 1000 sq km
Oromins only has 43.5% ownership of 200 sq km and has found a 174th oz potential mine
#6 TGZ have found multiple small open pit high grade opportunities
#7 Director has been buying recently .... & they're issuing options at 30c
#8 Valuations TGZ C$550 Rand - has too many areas to specify senegal valuation Oromin $140 M BSR .... $17 M
Conclusion: BSR have a really large under-explored area in a prime location where they already have a maiden resource of 240,000 oz.
More Oz will be found in the 1,000 sq km permit area so a JV partner can't be far away ..... otherwise I think BSR will get taken out by a cashed up major. Either way this looks to me like a reasonable 1 way bet at this level.
....... Did I mention the maiden gold resource of 240,000
IMHO with a few proven reserves this company should be worth more than Oromin.
DYOR - information as I see it .... but don't rely on it.
BSR Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held