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Fundamental Research Corp.
 
Investment Analysis for Intelligent Investors
 
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Guyana Goldstrike Inc.
(TSXV: GYA / FSE: 1ZT / OTC: GYNAF) 
Initiating Coverage: Near-Term Production Potential and Exploration Upside

Sector/Industry: Junior Resource 
Market Data (as of November 21, 2017)
Current Price C$0.30
Fair Market Value C$0.58
52 Week Range C$0.14 - C$0.37
Shares O/S 37,424,838
Market Cap C$11.23 mm
 
Investment Highlights
 
Guyana Goldstrike Inc. is advancing the Marudi Gold project in Guyana, South America.
 
Marudi has near-term production potential from the alluvial areas and the saprolite (thoroughly decomposed, weathered and porous rock) overlying a hardrock host. The project has an active mining license.
 
The company is currently generating revenues from a 10% royalty on artisanal mining on the project area. In the 12 months ended September 2017, a total of 1,528 oz were produced. GYA’s 10% royalty was US$178k.
 
A historic resource estimate (1995) on two mineralized zones (Mazoa Hill and Marudi North) total approximately 472 Koz of hard-rock gold.
 
The company has recently announced that it is converting the historic resource estimate of the Mazoa Hill zone into a NI 43-101 compliant resource.
 
The company has also initiated a multi phase exploration program to expand the mineralization on the property through the discovery of new zones and areas.
 
The property has been subject to a total of 42,000 m (141 holes) of diamond drilling since 1946 by various entities, for a total exploration expenditure of approximately $30 million.
 
95% of Marudi is still unexplored.Guyana is host to several large gold projects.
 
The country’s annual gold production in 2016 was 690,000 oz.
 
We are initiating coverage with a BUY rating and a fair value of $0.58 per share.