Patong1, it was my impression from the initial deal with FMR that GSR were only using their facility as a short term measure and that it was a mutual agreement to pullout as it was success driven. I am sure the gold price had a bit to do with that.. It was a trial as formerly announced. FMR hold a fair wad of GSR shares and it is also in their interest for GSR to perform as a stand alone operation going forward. I think we are reading too much into the relationship with regards to deals. Its been a classic Pareto Optimum and win/win. FMG have been well paid with shares and gold, and GSR have a sound understanding of the resource and how to develop it at Burbanks, but let's not forget the other backups like Phillip's Find and their upcoming drilling program.
Perhaps it is appropriate to see where GSR are at. We know grade is king and the situation reminds me of early RMS high grade discovery.
Firstly, GSR have no debt and apart from the recent PGE drilling expenditure they had approximately $6m in cash. No doubt the cobalt and nickel have great value in the MTJV and talk of lithium and PGE going forward where only about 2% of the tenements have been scratched will be a bonus. A look at the recent GAL results could suggest PGE's split and heading into MTJV. Further drilling results will tell. One for the geologists.
But let's focus on the gold at Burbanks which seems to be rising in price out of the doldrums now in US dollars. In Australian dollars its approximately $3000 per oz given the current exchange rate. Nothing to sneeze at. Oversold on this alone.
Northern Extension of High-Grade Mineralisation Confirmed ▪ Recent drilling confirms continuity of high-grade mineralisation beyond “Northern Fault” at Main Lode ▪ Additional 1.5 kilometres of highly prospective strike for future shallow high-grade discoveries ▪ Mineralisation defined along 1.5km strike, 450 metres below surface and remains open in all directionsHighlights From Last Quarters Drilling1,2,3▪ BBRC340D: 4.95 metres @ 30.46g/t Au from 292.1 metres, including: ▪ 1.30 metres @ 97.28g/t Au from 292.1 metres ▪ BBRC341D: 6.60 metres @ 9.85g/t Au from 395.9 metres, including: ▪ 2.00 metres @ 29.09g/t Au from 400.5 metres▪ BBRC343D: 4.7 metres @ 10.51g/t Au from 338.0 metres, with ▪ 0.5 metres @ 32.10g/t Au from 338.7 metres▪ BBRC338D: 1.5 metres @ 43.7/t Au from 405.9m, including: ▪ 0.5m @ 113 g/t Au from 405.9m
Birthday Gift Historic Production Of 180,000oz @ 27.4g/t Au ▪ Mining ceased at 110m b.s.l. with a shaft and development to 275m ▪ Limited exploration below 275m, and no exploration below 350 m ▪ Existing resources of 514kt @ 5.7g/t Au for 95,400 oz1
High-grade & Underexplored Footwall Lodes ▪ Several footwall lodes intersected and mined during previous operations ▪ Stacked ore lodes serve to reduce vertical and lateral development▪ Examples include the high-grade Dahmu, Eastern, Taylor and Jessen Lodes
Highlights From Previously Completed Drilling2 ▪ BBUD329: 4.7m @ 462.1g/t Au from 244m ▪ BBUD299B: 6m @ 39.8g/t Au from 163m ▪ BBUD313: 6m @ 27.1g/t Au from 154m
Drill Planning Underway for Second Half 2022 ▪ Footwall targets ▪ Birthday Gift Deeps ▪ Birthday Gift – Main LodeHistoric Production Of 180,000oz @ 27.4g/t Au ▪ Mining ceased at 110m b.s.l. with a shaft and development to 275m ▪ Limited exploration below 275m, and no exploration below 350 m ▪ Existing resources of 514kt @ 5.7g/t Au for 95,400 oz113
Main Lode Historic Production Of 85,900oz @ 18.3g/t Au ▪ Mining ceased at a depth of 275m b.s.l. with the advent of WW1 ▪ Limited exploration below 275m and no exploration below 350 m ▪ Existing resources of 360kt @ 2.6g/t Au for 29,900oz2
Recent Drilling Expanded Known Mineralisation ▪ High-grade plunging mineralisation extended up to 200m down plunge ▪ Previously unidentified footwall structure intersected in recent drilling ▪ Significant amount of drilling completed since previous resource estimate yet to be includedHighlights From Recently Completed Drilling1 ▪ BBRC299: 3.0m @ 24.7g/t Au from 167m ▪ BBRC300: 2.0m @ 16.30g/t Au from 173m ▪ BBDD020: 2.0m @ 13.2g/t Au from 160.6mDrill Planning Underway for Second Half 2022 ▪ Footwall targets▪ Main Lode Deeps (targeting repetitions of high-grade plunges at depth) ▪ Birthday Gift – Main Lode
Phillips Find Overview ▪ Historical production of 33koz @ 3.3g/t from open pit operations ▪ Historical open-pit production from Bacchus Gift, Newhaven & Newminster ▪ High-grade mineralisation remains open beneath all three historical open-pits ▪ Detailed geological review of Phillips Find has identified 13 high priority targets ▪ 2,250m campaign currently underway principally targeting near surface extensions to known orebodiesPhillips Find Mining Centre ▪ Historically, exploration has focused on the three historical open pits with very limited drilling in between ▪ Whole system exploration approach has identified a number of near-surface targets▪ An initial 1,800 metre RC drill campaign consisting of ten reverse circulation holes is currently underway ▪ More recent significant intercepts include1: ▪ PFRC097: 5.0m @ 11.0g/t Au from 117 metres; ▪ PFRC098: 8.0m @ 6.3g/t Au from 100 metres;Regional Exploration: Truth Trend ▪ Projected convergence of two low grade zones of mineralisation coincident with a geochemical anomaly ▪ Projected structural and geochemical convergence zone is also adjacent to a thickened felsic unit ▪ An initial 450 metre reverse circulation drill campaign is currently underway at the Truth Trend
I am definitely here for the long run, and able to whether the shenanigan's on the market having re-entered at the lows some time back. GLTAH.
GSR Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
