Gascoyne Resources Ltd


GCY Details

Rise in resources: Gascoyne Resources Ltd (ASX: GCY) reported that their Dalgaranga measured and indicated mineral resources increased to 708,000 ounces of gold (16.4 Mt @ 1.34g/t gold). Consequently, the overall Dalgaranga Minerals have grown to over 1.1 million ounces (25.7 MT @ 1.4 g/t gold for 1116000 ounces).
 

Dalgaranga measured and indicated mineral resources(Source: Company reports)
 
Over 94% of the mineral resources within the PFS open pit designs (currently being updated) is now classified as measured and indicated. Furthermore, diamond core drilling has started testing down dip extensions to Gilbeys South mineralization including recent intersections up to 28m @3.5 g/t/ gold and 17 m @3.2 g/t gold. The stock is in bullish trend and generated over 740% in the last one year (as of September 14, 2016). We give a “Speculative Buy” on the stock at the current price of $0.63
 

GCYDaily Chart (Source: Thomson Reuters)
 
Resolute Mining Limited


RSG Details

Transformational achievement:Resolute Mining Limited (ASX: RSG) reported a 21% rise in gold and silver sales revenues while NPAT reached $213 million for the year end June 2016, which is a turnaround from its $569 million loss in FY15. Resolute Australian and Mali mines delivered above guidance sales of 340,540 ounce of gold for $555 million revenue (as compared to $459 million in FY15) lifting gross profit to a record $167 million ($71 million). Resolute maintains 5.1 million ounces of gold in ore reserves and 12.1 million ounces in mineral resources. Resolute’s ore reserves were increased by 14% before FY16 mining depletion and divestment of Tanzanian assets. Ore reserves represent 42% of total mineral resources inventory including Maiden reserve of 644,000 ounces defined at the Bibiani gold project at Ghana. As on June 2016, overall ore reserves are estimated at 93.2 MT @1.7 g/t Au and total mineral resources are estimated at 261.2 MT @1.4 g/t Au.
 

Resolute Mining Mineral resource (Source: Company Reports)
 
Total proved and probable reserves of 5.1 Moz increased by 14% before accounting for depletion of FY16 production of 375 KOZ and divestment of 388 KOZ from Tanzanian projects. The reserve increase is due to feasibility study completed at the Bibiani gold project announced in June 2016. Open pit feasibility studies are nearing completion of Ravenswood. Resolute guided production of 300,000 ounces of gold during FY17 at cost of $1,280/ ounce. As a result, the stock already generated over 780% (as on September 14, 2016) during this year to date, which is much higher returns as compared to its peers in the sector. RSG is now trading close to its 52-week high price and we believe the same is “Expensive” at the current market price of $2.10
 

RSGDaily Chart (Source: Thomson Reuters)
 
Silver Lake Resources Ltd


SLR Details

Divesting non-core assets: Silver Lake Resources Ltd (ASX: SLR) sold the Great Southern Project to ACH Minerals Pty Ltd for cash consideration of $5 million. The company also plans to divest its non core assets and accordingly planned Comet tenement package sales and Farm-in and JV arrangement for Cue project in the Murchison. As on June 2016, overall mineral resources are estimated at 54.8 Mt @2.8 g/t Au for 4.92 Moz of contained gold and total ore reserves at 11.2 MT @ 2.3 g/t Au for 0.83 Moz of contained gold. For FY16, the company reported revenue of $209.5 million, which is up 13% while EBITDA grew splendid 49% to $56.7 million. The company reported a net profit of $4.4 million against a loss of $94 million.
 

June update (Source: Company Reports)
 
Cash flow from operations was up by 68% to $55.0 million and cash and bank balance was at $42.6 million. Gold sale increased 7% to 132,400 ounces. The company earlier said about starting Maxwell underground project in Q1FY17. SLR’s JV partner, Musgrave Minerals Ltd for Cue Project updated about commencement of reverse circulation drilling at the Break of Day gold prospect. Considering, its project developments and strong FY16 results, we put a “Buy” recommendation at the current market price of $0.51
 

SLR Daily Chart (Source: Thomson Reuters)
 
Beadell Resources Ltd


BDR Details

Tucano to transition to grid power:  Beadell Resources Ltd (ASX: BDR) has signed a deed with Amapa Electricity Company (CEA) to start required improvements to the existing 110 km 69 KV power line which terminated at Tucano. Once the improvements are complete, Tucano would aim to enhance its grid power supply from the current 1 MW to initially 5 MW by end of 2016 and ultimately to 12 MW. The reduction of reliance on diesel-generated power would have an immediate and material effect on operating costs at Tucano.
 

First half of FY16 operational data (Source: Company Reports)
 
BDR has multi-million ounce gold resource with mineral resources of 67.2 MT @1.64 g/t for 3.5 Moz, open pit reserves of 21.1 Mt @1.5 g/t for 1.0 Moz and underground reserves of 3.0 Mt @3.61 g/t for 345,000oz. The group forecasts CY16 production at 145,000 – 160,000 ounce of gold and AISC between US$715 – US$815 per ounce. The stock was up 9% on September 15, 2016. We rate the stock as a “Speculative Buy” at the current market price of $0.42
 

BDR Daily Chart (Source: Thomson Reuters)
 
Gold Road Resources Ltd


GOR Details

Good reserves: Gold Road Resources Ltd (ASX: GOR) recently completed deep diamond hole and wedge and confirmed a consistent higher grade mineralization across the mineralized width of the porphyry, along with Southerly plunge to higher grade mineralization, continuity of internal high grade zone with visible gold in numerous locations and internal high-grade trend>1.5 g/t identified in previous drilling. It is also planning an additional drilling program comprising a framework of deep diamond drill holes and accompanying wedges to define the main high grade zone to an inferred level of confidence. The targeted grade is expected to be in excess of 1.5 g/t/Au.
 

Gruyere Geology (Source: Company Reports)
 
In February 2016, Gold Road Resources finished the PFS on Gruyere which has emerged as one of the premier undeveloped gold assets in Australia. The PFS indicated a technically sound and financially viable project generating in excess of $1 billion in undiscounted free cash flow over an initial 12-year project life. Its maiden ore reserves of 3.17 million ounces would support annual average gold production of 265,000 ounces. The total cost of developing Gruyere was estimated at $455 million including project contingency of $35 million. We believe the stock is a “Buy” at the current market price of $0.63
 

GOR Daily Chart (Source: Thomson Reuters)

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