Comprehensive Research Maintains Buy Rating
$0.45 Per Share Target Price
Guyana Goldstrike (GYA.V) is a Vancouver based mining company with their flagship Marudi gold project in advanced exploration stage and near-term production position in Guyana, South America.
Following our initial coverage in July 2018 and quarterly update November 2018, we are particularly encouraged by the successful ongoing exploration results at the Marudi gold project. The company is currently trading at an Enterprise Value per ounce of $30, an 80% discount to peer companies with assets in similar jurisdictions and projects in similar stages of development.
Visible Gold encountered at Toucan Ridge while excavator trenching in 2018.
23.5 g/t gold was reported Feb 5, 2019 from trench #10 at Toucan Ridge
"Major Gold Companies Actively Scouting
The Guiana Shield"
"Major Shareholder Zijin Funds to Participate
in Equity Financing of 2019 Drill-Program"
"An Iron Formation Hosted Gold Deposit"
"Multiple New Gold Discoveries
At Toucan Ridge"
"Implications Of The Toucan Ridge Discovery At Marudi"
"Airborne Geophysics Survey Report Identifies
Several Areas of Interest"
Potential For A Multi-Million Gold Deposit
In 2018, Guyana Goldstrike successfully advanced the Marudi Project with exploratory trenching
and an airborne geophysical magnetic survey, which led to new discoveries, new areas of surface mineralization, numerous magnetic anomalies and three large drill target areas. With Phase 1 drilling we expect a minimum of 12 holes and up to 10,000 m of drilling to be completed at the Toucan Hill and Mazoa Hill targets over the next 6 months. The recently completed geophysical survey confirms numerous magnetic anomalies across the Marudi Property, similar to the ones at Mazoa Hill, Marudi North and Toucan Ridge. As Marudi is an iron formation hosted gold deposit, and the geophysical magnetic survey identifies areas of high and low magnetic fields, geologists can now use these magnetic highs and lows to accurately target areas of interest and potential targets.
With the upcoming 2019 drilling program, the resource at Marudi could expand significantly.Considering the trench sampling results from the East of Trench 14 Discovery, Marudi East and Toucan Ridge areas together with the existing NI 43-101 resources, our analysis supports an eventual resource that could total 1+ Moz Gold. The company has a full license from the government of Guyana to mine Marudi for 18 years. Over 85% of Guyana Goldstrike’s Marudi Project remains unexplored. The geophysical surveys
successfully identified magnetic anomalies which can be correlated with anomalous gold identified by trench samples, providing the most prospective drill targets. Based on EV/oz of resources of peer companies with assets in similar jurisdictions and projects in similar stages of development, Guyana Goldstrike remains significantly undervalued, currently trading at an 80% discount to its peers. Combined with the volume of highly prospective areas that remain unexplored and underexplored, we view this as a buying opportunity to acquire shares of an undervalued exploration company with significant potential upside. However, after drilling confirms the results of the trench sampling at the 13 known mineralized areas, we expect the current discount to narrow. We maintain our buy rating and C$0.45 per share target price for Guyana Goldstrike Inc.
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