A few months back I decided I wanted some gold exposure, especially given the macro outlook. I found a little gold play that whilst it had been bumbling along for a while looked very promising. I wanted something that had a low market capitalisation but a lot of potential.
Anyone who has been watching the GGP (Greatland Gold) story will see that from only a few years back its gone stratospheric. I wanted something in the same ball-park and I think I have found it with Goldstone. GGP is still actually in a pre-production phase but have been hitting excellent grades and the share price has re-rated simply due to potential on offer. Gold is hot right now !
Goldstone re-listed last week after a rather embarrassing suspension due to administrative issues but lets not let that detract from what could be a huge opportunity as its now back!
I’d started building a position in GRL prior to suspension after chatting with the CEO Emma Priestly. I’ll be preparing a research note on Goldstone in due course but it seems the market is already picking up on the story. Not surprising when you look at the two largest shareholders, more to come in my research note…!
Simply put the company having now secured finance will be developing two previous producing gold mines Homase and Akrokeri in Ghana which happen to both be on strike of one of the largest gold mines in the world, namely AngloGold Ashanti’s Obuasi mine which has a total historic and current resource of 70m oz (thats huge by the way).
The two projects are nicely split into a phase 1 producing mine expected to come on-line H2 2020 producing 14k oz gold pa with then an exploration programme however the exploration is an expansion of what was already a 75,000oz producing mine that was closed due to an ingress of water,
This mine was producing at a recovery grade of 24g/t however recent work by Goldstone has identified high-grade quartz veins up to 51.2g/t – these grades are again huge!
Weigh all that up with the project location on strike of Obuasi and that Goldstone could be on to a huge low cost resource which at todays’s £10m cap with an initial 14k oz production planned to start this year, investors could be in for a real treat.
Look out for my more detailed research note coming soon.