Investors Buy More Shares on Marudi Announcements
Guyana Goldstrike Inc. (GYA.V) recently announced three significant news releases.
The impact in the market was a strong upward movement in share price, climbing from a low of 17 cents before the news to a new 52 week hi of 37.5 cents surpassing the high of 35 cents set on May 2, 2017.
Technically, the stock price broke over its 50-day moving average on October 12, subsequently continued the climb to the 200 day moving average which is always viewed as bullish trend.
Guyana Goldstrike released details of a planned multiphase exploration program on the company's Marudi gold project in Guyana, South America. The primary objective of the program is to expand the property's historic gold resource estimate.
Highlights of the exploration program
- Up to 10,000 metres of diamond drilling;
- Up to 12,000 metres of trenching;
- Detailed rock, soil and core sampling and assaying;
- Airborne magnetic survey over the entire property.
Locke Goldsmith, P. Eng., P. Geo., chief geologist stated: "Only five percent of the property has been explored to date, and therefore the opportunity for new discoveries is very favourable."
The company received the 3D modeling of drill data at its Marudi Gold Project in Guyana, South America, created by the experts at Minelt Consulting. The 3D model is on display on Guyana Goldstrike’s home page http://www.guyanagoldstrike.com/, provides some color to the substantial historical work completed at Marudi by previous operators, including Noranda, Sutton Resources and Vanessa Ventures.
There have been 141 diamond drill holes completed totaling 42,000 meters of drilling.
This gives the company a large data set to define upcoming drill targets in relatively concentrated areas of the project that by-large remains mostly unexplored. The 3D modeling focuses on 90 drill holes at Marudi North and Mazoa Hill, the two main mineralized zones at Marudi. The data from these areas indicate that gold mineralization remains open in multiple directions, making them ideal targets for more exploration and development.
CEO Peter Berdusco said in a statement announcing the 3D modeling that the company is now able to fast track a new mineral resource estimate, a move that would give the company “a clear advantage when compared to many other exploration-stage juniors.”
Another area where it’s arguable that Guyana Goldstrike has an advantage over similar-size gold juniors is that the company currently generates revenue from its Marudi property.
This is accomplished through a cooperative agreement with alluvial miners, granting them access to alluvial areas at Marudi under the oversight of the Romanex Guyana Exploration, the company’s operating Guyanese subsidiary. In the six months ended September 30, 2017, the small-scale alluvial miners recovered about 618.2 ounces of gold from creeks, edges, new channels and tailings piles at the property.
Per the agreement, Romanex Guyana receives 10 percent of the gross gold ounces for allowing the miners access. Romanex received 61.82 ounces of gold that assayed 97 percent purity. In August, 30.57 ounces were sold in the form of gold fines to the Guyana Gold Board for $1,269.30 per ounce, followed by the sale of 31.25 ounces at $1,275.00 per ounce in October. After smelting expense and giving the Guyana government a 5 percent royalty, the company netted $72,173.00 from the sales.
In the last six months, gold sales brought in $106,490 to the company. Management said that the lower sales in the recent period was due to an unusually long rainy season that slowed gold production. It’s cash flow that can be used to offset development expenses at the highly prospective gold project.
And it’s part of a business model that Guyana Goldstrike is efficiently executing on, a fact the market seems to be recognizing and embracing this undiscovered gold company.