$6m EV, Gold (drilling), Zinc (Corp Transaction)

Hi All,

Thought I'd start a new thread that we can all use and discuss GMR's current activities and any future announcements.

I've prepared a bit of a summary of GMR - where it's been, where it is and where it's going.

SP - 0.3c
MC – $9.0m
CASH - $2.9m
EV - $6.1m


GMR is currently:

- Drilling (two rigs) at its 100% owned Kouri Gold project in Burkina Faso with results expected during October & November 2017

- Leading Canadian broking firm is arranging a Corporate Transaction for GMR's Chilean Zinc-Lead-Silver-Gold-Copper project (most likely to sell it for a decent stash of cash)

Attached are the usual images with highlights of the most important bits.

Here is a dot point summary/timeline (but I'm sure I'll miss something so check the images!):

1. Last year GMR finalised the sale of one of its Burkina Faso gold projects for US$8M cash (0.2Moz gold)

1. This year GMR acquired a Zinc-Lead-Silver-Gold-Copper project in Chile (Paguanta)

1. Paguanta is surrounded by Majors like nothing I've ever seen - every company in the area is valued at US$14B to US$78B (BHP, Codelco, Vale, Teck, Freeport, Glencore, etc - see image)

1. A$47m has been spent on the Paguanta project by GMR's predecessor and some by GMR

1. GMR realised that Australian market wasn't valuing Paguanta properly and have engaged a leading Canadian broking firm to get a Corporate Transaction for Paguanta (most likely a sale)

1. Paguanta has been valued at A$107.8M by Brandon Hill Capital

1. How much cash from its sale will GMR receive? You'd have to think as a bare minimum more than the current market cap of $9.0m which would take the EV to negative $3m but I think they'll get more than that all things considered but we wait and see

1. Management are pretty good when it comes to Corporate Transactions as they fetched US$8M last year for a 0.2Moz gold project in Burkina Faso

1. Paguanta is a near-term development project and has plenty of upside and is surrounded by BHP & Codelco and one of the Paguanta prospects goes over GMR's, BHP's & Codelco's tenements

1. Paguanta is 35km from BHP's Cerro Colorado Mine (400Mt at 0.62% Copper) - Elephant Country

1. Zinc is at 10 year highs, Copper getting up there too and Gold is close to multi-year highs

1. A couple of months ago GMR changed its focus from Paguanta to Gold in Burkina Faso - its happy hunting ground

1. At the time of changing its focus to Gold, GMR also secured a Cornerstone Investor - Acorn Capital (one of the largest microcap investors in the Australian market)

1. Kouri project (currently being drilled) has ~20 parallel gold zones at one of its prospects (Banouassi) over 3km strike (outside of Banouassi there is 13km of gold mineralised strike with hits like 108 g/t gold & 46.5 g/t gold)

1. Kouri has past production of 20,000 oz at 5.2g/t gold

1. Banouassi has previous drill hits such as 21m at 5.6 g/t gold from 13m, 18m at 5.4 g/t gold from 2m, etc

1. Banouassi alone has a current Exploration Target of 500,000 to 611,000 ounces of gold and that's only to 70m below surface and is open

1. There is a 650m gap in the middle of Banouassi that has been undrilled and is getting drilled now

1. Mineral Resource will be a lot larger than the Exploration Target as they're drilling the 650m gap and going deeper than 70m

1. Company is going for a large open pittable gold resource

1. Hartleys (everyone's favourite broker) placed shares for GMR about 4 weeks ago and Hartleys' payment method was via out-of-money GMR options (GMRO) which are exercisable at 0.5c and current SP being 0.3c - I wonder what's coming and how much those GMRO's will/might be worth!!

1. Gold price also trading at multi-year highs which is a bonus.

Great risk/reward from these levels.

Attached is the related FA which has been extracted from GMR announcements and research reports.

Let's see how she goes!!!

Cheers,

GB.