Para Resources (Mkt Cap: C$28M, CVE:PBR, FRA:8PR) Update – Acquires High-Grade, 85,000 Oz./Year Mine
Para Resources’ recently announced a major acquisition, securing the assets of Mojave Desert Minerals LLC, which include the Gold Road mine, located in Oatman, Arizona. Gold Road is a fully permitted mine, with past production of over 700,000 ounces of gold averaging 8.8 g/t, operating as recently as 2016.
To pull it all together, Gold Road has significant exploration potential, with the orebody open at depth and along strike. The district has had only minor exploration since the 1940s, and we are excited to see what kind of targets are delineated with modern technology.
We believe the Gold Road mine can ramp up to 85,000 oz./year production at a minimum average grade of 7.5 g/t. This drastically changes Para’s production profile, and in turn we bump its target from C$0.47 to C$0.65, or a 160 percent return from current levels.