“West African’s maiden guidance was recently set at 250,000 to 280,000 ounces of gold in 2021 at AISC US$720 to US$800 per ounce,” Wendt says.
“The company has the potential for further price upside as it looks to demonstrate steady-state gold production, combined with its attraction on a corporate level to a cashed-up suitor.
“West African represents a template for success for aspiring gold companies, particularly in a foreign jurisdiction.”
The company’s main game is the 100%-owned gold properties within WA’s Widgiemooltha district, a mining district with a rich history where Auric maintains an existing gold inventory of more than 220,000 ounces.
“The company’s strategy here is to expand its resource base through innovative exploration, as in many instances the gold potential of the region has taken a back seat, with the overwhelming exploration focus historically being on nickel, with Western Mining Corporation the dominant regional player,” Wendt says.
“Auric’s market value is modest at just $15 million.”
This explorer represents a risk/reward opportunity in a location that is a little off the beaten track, Wendt says.
“MetalsTech is appraising its flagship Sturec underground gold mine in Slovakia, which has historically produced more than 1.5 million ounces of gold and 6.7 million ounces of silver,” he says.
“The project currently hosts a JORC 2012 Resource of 21.2Mt @ 1.50 g/t Au and 11.6 g/t Ag, for 1.026Moz of contained gold and 7.94Moz of contained silver (on an open-cut scenario), with a further 388kt @ 3.45 g/t Au and 21.6 g/t Ag for 43koz of contained gold and 270koz of contained silver (on an underground basis).
There’s three “lottery balls in the drum” with this WA explorer, Popple says.
Lottery ball one: They find some more gold at the 873,000oz Mt York project in the Pilbara.
“If they can do this then I think they’ll have an asset that someone may want to buy for a decent price,” Popple says.
Lottery ball two: they make a decent discovery at ‘Kangan’ – also in the Pilbara — that provides the market some comfort that De Grey’s (ASX:DEG) Hemi discovery may extend onto their land.
Lottery ball three: they make a decent discovery at ‘Black Cat’ — part of the Roe Hills Project near Kalgoorlie – where drilling has just been completed.
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