Update Goldsource GXS:
The company started a small pilot plant, gravity circuit operation. This was processing only the Saprolite using cyclones for gravity extraction. Unfortunately, the recoveries were less than anticipated, as the gold was too fine, some less than 30 microns. The unrecovered gold went through to our tailings pond, about 5000 ounces, which are still there. It was decided to drill and prove through more Saprolite ounces and build a full CIL plant (cyanide/leach) and go into full production.
They have been in the exploration phase for about 2 1/2 years and have made four new discoveries, Salbora, Powis, Toucan and just recently, Friendly. These four areas cover an area of about 2 KMs.
They are back drilling again, after the Covid-19 halt and this latest program should be the last before they prepare the new Resource Report, expected in the 4th quarter, this year.
The expectations, are that they will have, at least 600k oz of Saprolite and 1.5 to 2 million oz total resource. The 600k will give them at least 10 years of production @ 60,000 oz per year, or higher. Being shallow, open pit, with about 96% recovery, cost should be quite low.
With success, they could have the feasibility next year and production,
Now with gold starting to get stronger, the recent international interest in Guyana, and the new resource coming up, the rest of this year looks quite exciting.
Gotta love having Eric Fier running the show and heavily invested. Sprott has a huge position, and I don't know what you think, but I love the drill results and think they are being overlooked for some reason. Excellent drill results, excellent jurisdiction, this is going to be a big mine and they can start production quickly and cheaply. And grow production a lot over time. It will be more ounces a year and a bigger operation than a lot of people think. Stock is cheap, and gold is at $1900. I guess the huge dilution is scaring people away, or maybe the poor history of the property and the recent failed attempt to start the operation.
But with Eric Fier running the show it is hard to imagine this not turning into a home run. The cheap price more than makes up for the dilution.