2023 has been a difficult year in the junior precious metals markets, particularly in the junior gold exploration sector.
Although the gold price is standing strong, the sentiment has remained weak. Despite this, Gold Bull has continued to advance its main asset, Sandman, located in
During the year, Gold Bull (TSX-V: GBRC) (the 'Company') commissioned a Preliminary Economic Assessment ('PEA' or 'Scoping Study') to investigate the viability of a small-scale startup operation (proposed mine) at Sandman, focusing on the existing gold resources.
The PEA considered a conventional heap leach mining operation targeting 38,000 ounces of gold produced per annum over a 9-year operation. Given the nature of the Sandman deposits (outcropping), a 2.2 Mtpa production rate and very low strip ratio of 2.2:1 extracts an average gold grade of 0.73 g/t Au (majority oxide). The economics for this scenario is robust, with an 81% IRR (post-tax) and NPV of
The capital required to build the above mine is modest at an initial pre-production capital of
Sandman's economics is most sensitive to the gold price. In our PEA we used a gold price of
From our Board's perspective, a 38,000 ounce per annum operation is not our end game goal, however the PEA indicates that a small-scale operation at Sandman could indeed become a 'cash cow' capable of self-funding further exploration to grow the known gold resources and to co-fund M&A activity. In the current market, cash is King. Many of the world's biggest and most successful gold mining companies, started off small, such as by an operation at a scale like our proposed Sandman PEA. Very few exploration companies have an opportunity to investigate a near-term production scenario such as Sandman, especially in mining-friendly
It should not be forgotten that immense exploration potential exists at Sandman and in the surrounding region. The Gold Bull team believes there is significant ounce potential in the Sandman region, targeting 'Sleeper' style discoveries. Our independent epithermal advisors have reiterated that belief. The Sandman region boasts plentiful world class targets, many of which have never been drilled. Additional exploration is warranted at Sandman and in the surrounding region.
During 2023 Gold Bull reported the success of its soil gas orientation survey assessment in which all four known gold deposits at Sandman demonstrated an association with soil gas interpreted to be directly associated with gold mineralization in deep seated structures. The objective of the soil gas survey was to test if the interpreted structures at each of Sandman's four known deposits had gas signatures which could be used elsewhere on the property as a cheap exploration tool to assist with identifying structures which could be gold bearing located beneath a thin veneer of unconsolidated alluvium and sand dunes.
Our Geology team, led by
Sandman represents two opportunities in one, exploration upside and a near term development scenario. For the latter, the next step at Sandman is to commence a feasibility study.
Big Balds,
Gold Bull's 100% owned
M&A
In the current market, it is generally considered cheaper to acquire existing known gold resources than it is to drill and explore for additional ounces, which makes our M&A (merger and acquisition) discussions a vital part of our Company's growth strategy. We have a short list of assets and companies that we are advancing to the next level of due diligence in the pursuit of value-adding transaction(s). In short, if we can acquire existing ounces cheaper than we can explore for them - we believe that represents compelling value for our shareholders.
I would like to take this opportunity to thank everyone who supported us this year: our communities and stakeholders, Board of Directors, accounts & admin team, advisors and consultants, supportive stockbrokers and I would like to acknowledge the dedication of our
Most of all, I thank you, our shareholders, for your continued support. On behalf of Gold Bull, we wish you a Merry Christmas and a Happy and Healthy New Year.
About Sandman
In
About
Gold Bull's mission is to grow into a US focused mid-tier gold development Company via rapidly discovering and acquiring additional ounces. The company's exploration hub is based in
Gold Bull's core asset is the
Gold Bull is driven by its core values and purpose which includes a commitment to safety, communication & transparency, environmental responsibility, community, and integrity.
This news release contains certain statements that may be deemed 'forward-looking statements' with respect to the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'indicates', 'opportunity', 'possible' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Although Gold Bull believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company's ability to raise sufficient capital to fund its obligations under its property agreements going forward, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations, future prices of gold and other metals, changes in general economic conditions, accuracy of mineral resource and reserve estimates, the potential for new discoveries, the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to the Company's plans and business objectives for the projects; the general ability of the Company to monetize its mineral resources or conduct M&A transactions and changes in environmental and other laws or regulations that could have an impact on the Company's operations, compliance with environmental laws and regulations, dependence on key management personnel and general competition in the mining industry. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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