Goldsource Mines Inc
See the video here: https://youtu.be/P4VStjPzssE
Market Cap: Canadian Dollar 49.9 million
Shares fully diluted: 428,467,982
Type of company: Junior
Date of analyses: 22 april 2019
Exploration – Development – Mining
Flagship: Eagle Mountain Project
All projects: Eagle Mountain, Border Coal Project (Sascatchewan)
Flagship location: Guyana
Grade: High Grade Gold
Type of mine: Intension to build an Open pit mine
Life of mine (LOM): expected 7 to 8 years
Inferred resources: 306,000 Oz (used in the PEA of 2014 and NI43-101)
Indicated Resources: 74,000 Oz (used in the PEA of 2014 and NI43-101)
New resources inferred: 486,000 Oz
New resources indicated: 114,000 Oz
Total resources in the ground are 980,000 Oz what represents a shareprice of Canadian dollar 2.91
Lets focus on the value per tonnes in stead of on the given ounces of Gold.
I do this because the resources or not proven or probable.
Inferred Saprolite of 7,202,000 tonnes with 1,32 gr/tonnes gold is on a current Gold price (22 april 2019) of US dollar 1274 (avarage price that I took during the day, so this is not the fixed price of end of the day). This gives us a metal value of US dollar 48.77 per tonnes.
Or in Canadian dollar 65.09 per tonnes.
The estamated value is Canadian dollar 468,778,180
As inferred resources are only an estamated I use a discount of 35% what brings the value on Canadian dollar 304,705,817
than the indicated Saprolite of 1,590,000 tonnes with 1,45 gr/tonnes Gold is on a current Gold price of US dollar 1274 a metal value of US dollar 53.57 per tonnes.
In Canadian dollar it is 71.55 per tonnes.
Estimated value is Canadian dollar 113,764,500
As this is an indication of what is in the ground it gives a better vieuw on the deposit and I use a discount of 20 % what brings the metal value to Canadian dollar 91,011,600
Very recently the company has found more gold and this is calculated as
Indicated at 2,331,000 tonnes with 1.52 gr/tonnes is on a goldprice of US dollar 1274 a metal value of US dollar 56.16 per tonnes
In Canadian dollar it is 74.94 per tonnes.
Value is in Canadian dollar 174,685,140
Discount of 20% brings the metal value to Canadian dollar 139,748,112
Inferred at 13,433,000 tonnes with 1.13 gr/tonnes is on a goldprice of US dollar 1274 a metal value of US dollar 41.75 per tonnes
In Canadian dollar it is 55.72 per tonnes
Value is in Canadian dollar 748,486,760
Discount of 35% brings the metal value to Canadian dollar 486,516,394
This brings the total value of the deposit to Canadian dollar 1,021,981,923
This makes that the share price represents a present value of Canadian dollar 2.39
Conclusion is that the current share price is heavely undervalued and its current shareprice of Canadian dollar 0.16 has a minimum growht potential of 1450 %, based on what the deposits are today. As the company is still doing further exploration this estamated shareprice is at the bottom of its fork.
When the Goldprice wil increase, the share price will increase aswell.
-Goldsources mines has no debt.
-Very expierienced managment.
-Guyana, mining friendly and the only English speaking country in South America. It is ruled under brittish law and is a secular democracy.
-No social issues and a friendly community
-No environmental issues
-Fact that they have already a 1,000 Tonnes/day pilot processing plant reduces the risks
-In house drilling exploration with two own rigs, adding ounces of gold every day.
-The company is still drilling to expand resources
-The company has the intention to start mine construction somewhere in the middle of 2020.
-Rule of thumb is that production wil follow somewhere in 2021 / 2022
-The quick ratio (based on the unaudited financial statements of september 2018) is 2,54 witch is low for a exploration and developing company but the fact that they have there own in house drilling exploration saves a lot of dollars. The fact that Eric Sprott has invested heavely in the company and owns 8.7 % of shares will probably give no problems to fund the project.