Guyana Goldstrike Inc (TSX-V:GYA) – Exploring A Brand New Gold Belt in Guyana
Share Price: C$0.29
Shares Outstanding: 52.4M
Market Capitalization: C$15.2M
Let me start by making a bold statement. . .
The coming mining bull market will place a huge premium on companies that have ground in brand new areas.
Discovery will be the key word.
Here’s a little background. . .
Precious metal producers are in dire need of new discoveries – for the past decade exploration budgets have been slashed to bare minimums. And now project pipelines are empty (we touched more on this ‘peak gold’ problem before – you can read here).
So – to expedite the exploration process, the major producing companies are now injecting cash into junior exploration companies – and in a big way. Those especially with regional size plays that have the potential to host millions of gold ounces.
Guyana Goldstrike (TSX-V:GYA) and their Marudi gold project is a textbook example of this. . .
True to its name, the project’s located in one of the most highly prospective (but under-explored) gold regions in the world – Guyana.
Just so you know – Guyana’s the geological continuity between the Guiana Shield and West Africa.
And the Marudi project’s located down in the south – an area off the ‘beaten path’.
At Marudi, there’s gold everywhere.
In the bedrock – in the overlying saprolite – and in alluvium in drainages. The host-rock for all significant mineralization is the quartzite unit of the Marudi Formation.
The majors have recognized that Marudi could open an entirely new gold belt in Guyana.
But it was the largest gold miner in China that made the most attractive offer and invested $3 million into Guyana Goldstrike for a sizeable 24%-interest in the company.
The Marudi gold project covers over 13,500 acres and the main gold source is just waiting to be discovered. . .
The Marudi Gold Project
Historically, Marudi has seen 42,000 meters of diamond drilling over 141 holes.
This has led to the delineation of two zones with mineralization: Mazoa Hill and Marudi North zones.
And just so you know: only 5% of Marudi’s actually been explored thus far. . .
This means there’s still so much more left to discover. And the company’s making ground.
Management’s outlined nine high priority targets to explore – and so far, are only on number four.
The Mazoa Hill Zone’s been explored by surface trenching and has 63 drill holes to date.
This work has defined a zone of mineralized quartzite that strikes northwest – which is 300 meters long parallel to the strike and 150 meters wide across strike – and has been traced to a depth of 250 meters below surface.
Mazoa Hill is open to the southeast and at depth – with the ability to increase ounces below pit design of 105-meter depth.
The company’s recently completed a resource estimate on the Mazoa Hill Zone – which saw a host resource of 259,100 ounces of gold averaging 1.8 g/t and an indicated resource of 86,200 ounces averaging 1.6 g/t.
From the exploration so far, there was enough information to theorize that there are other structural settings like the Mazoa Hill Zone – such as the Peace Creek or Toucan Hill areas.
Through trenching – the company recently discovered a third mineralized zone at Toucan Ridge.
So far, a total of 1,885 meters have been trenched and 575 samples taken from the Toucan Ridge area.
The area of interest continues for more than 1.75 kilometers to the east of trench TTR-18-06. And to date, a total of eight trenches have been completed.
The company just released results from sampling and mapping of trench TTR-18-12 from the Toucan Ridge area (Trench TTR-18-12 was trenched a total length of 136.50 meters with 57 samples taken).
Trenching’s been very successful. In Guyana Goldstrike’s most recent press release, the company successfully exposed the host-rock in place with resulting assays returning values of 7.21 g/t gold over 3.00 meters within 18.90 meters of 2.03 g/t gold.
Other results from Toucan Ridge include:
– Trench TTR-18-09 – 1.87 g/t gold over 19.80 meters, including 3.29 g/t over 8.40 meters. . .
– Trench TTR-18-09 – 1.63 g/t gold over 12.50 meters, including 3.63 g/t over 1.80 meters. . .
– Trench TTR-18-08 – 1.19 g/t gold over 1.30 meters. . .
– Trench TTR-18-08 – 1.38 g/t gold over 16.27 meters, including 5.4 g/t over 3.00 meters. . .
– Trench TTR-18-07 – 0.69 g/t gold over 27.00 meters, including 1.09 g/t over 9.0 meters. . .
Trenching at Toucan Ridge continues to uncover – and identify – the quartzite-metachert host rock for gold mineralization.
Thus, Toucan Ridge is now the top-priority target zone for the upcoming drill program.
Guyana Goldstrike has also completed their first-ever helicopter-borne magnetic and radiometric geophysical survey over the entire property.
Due to the enormous success so far, the planned phase 1 drilling will focus on Toucan Ridge.
The phase 1 target zones will focus on the multiple trench sites along the ridge which have confirmed gold mineralization.
And the primary objective of phase 1 is to confirm mineralization at depth.
The target zones are open in all directions, and trenching is currently continuing and progressing in an eastward direction along the ridge’s 1.75-kilometer area of interest.
Drilling’s expected to begin in early Q1/2019 – with additional drilling planned in phases for 2019.
But the goal of the 2019 program is to expand Marudi’s resource estimates.
On the market side – Guyana Goldstrike has seen an increase in liquidity and found investor support.
With the drill program on deck and exciting targets to hit – now may be a great time to open a position. .
Palisade Global Investments Limited holds shares of Guyana Goldstrike. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.