Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Resources and Exploration
The Zulu Project has substantial resources. Following a successful 2,500 metres diamond drilling programme between September 2016 and February 2017, Premier published a Maiden SAMREC compliant Inferred Mineral Resource Estimate of 20.1 million tonnes grading 1.06% Li2O and 51 ppm Ta2O5 using a cut-off grade of 0.5% Li2O on the Main Zone.
https://www.premierafricanminerals.com/zimbabwe/zulu-project
20.1mil tonnes was inferred in the maiden resource declaration from just just 2500metres of drilling.
We should be over 7000metres drilled into the DFS now and the rate is likely to be higher with the end of the rainy season and the extra drills in place.
7th Feb.
"Unseasonal and hugely excessive rains have led to difficult conditions at the Zulu exploration site and to supplement drilling activities, we have engaged Aqua Terra who have mobilised another three drill rigs from their operations in Mozambique and who are expected to complete their camp establishment and commence drilling during the week commencing the 14 February 2022. Extra rigs operating will both expedite development of the extension zones and facilitate exploration in other parts of the Exclusive Prospecting Area ("EPO") where mineralisation has been detected through non-intrusive exploration methods."
https://www.lse.co.uk/rns/PREM/zulu-update-4wi1u46m2ofja2l.html
Bring on the RUS George.
We have all the fundamentals in place to be a 25k producer, then a 50k producer and beyond within a relatively short space of time.
Already incredibly undervalued based on current fundamentals of a 3 project gold producer / explorer, a fully operating and funded mine capable to turning over approx $1.9mil in revenue per month at 1000oz, 1.6Mil oz resource across our portfolio which should double over time to over 3Mil oz+., 2 wholly owned drill rigs etc...I do genuinely believe from here that 5-10 bags will be achieved in a relatively short space of time, lets say under 3 years. We're simply further ahead of pretty much all listed junior gold explorers.
Selling way over done here.
First target 35p. Next 50p.
Mcap at cash level with a great pipeline of news here.
Easily more than £1 once news is out.
Hi and welcome.
Anyone feel free to correct me if I'm wrong, but there is no debt finance here.
A lot of the early financing up until listing was paid for in shares. Its likely resulted in some short term pain with shares churning but it will bring about long term benefits to shareholders imo.
The company raised and listed with £5.5mil, which covered a lot of the costs up until now.
The company is producing and selling gold. Over 1000oz sold in Q4 (would have brought in around $1.8mil)
Approx 3000oz or more in stockpile of gold, which can be sold for approx $5.7mil or more at current gold prices.
Continuing to generate further revenues with gold production at 1000oz per month and soon 2000oz per month.
Placing funds from Feb to accelerate and pay for some of the expansion work too.
This is why we're passionate on here about GCAT's prospects and future.
Lots of new mineralized zones to be discovered throughout Kilimapesa with our lovely drill rigs away from the existing mining zone.
Lots more gold churn out across Kili, Simba and Nyakafuru. Really is a bargain to invest in gold within a company that already has a fully operating mine, infrastructure, drill rigs, licenses, exciting new board, at least 3 projects much more down the line. :)
With sky high inflation, a recession on the cards and a high demand for minerals, many more will flock to GCAT over time. This year, next year and beyond as the company grows.
Gold looking strong over $1900 per oz.
https://goldprice.org/
Some quick revenue calculations once we're hitting 2000oz per month / 24000oz per annum.
x $1700 = $3.4mil per month / $40.8mil per year
x $1800 = $3.6mil per month / $43.2mil per year
x $1900 = $3.8mil per month / $45.6mil per year
x $2000 = $4.0 mil per month / $48.0mil per year
x $2100 = $4.2mil per month / $50.4mil per year
Point being that no matter the gold price, there's a lot of value here in GCAT that can't be found in most juniors. That's the potential this year for just Kilimapesa and it seems likely we can expect further developments to boost production further in 2023 and also get either Simba or Nyakafuru producing in 2023. As well as further cost reductions, efficiency improvements, resource upgrades, JV's, acquisitions, board appointments and further liquidity from Nairobi.
Don't let little trolls mug you off. There's a reason why they're so rabid with this one - because they want to get in here as cheap as possible.
Which is why the re-rate from the current share price and mcap will be significant. It's only been listed for about 6 months and so sometimes it can just take a little while longer to be noticed by the market.
I'm happy to ride out the volatility of this month and buy the dips. Here for the bigger picture.
To add to this, it's a fairly safe bet to say our resource will be sitting at 2.5-3mil oz this year factoring in the drilling and additional license.
On top of this, drilling will continue at Kili and I it's likely we'll get 2-3miloz there over time. I also suspect the board would be keen on securing another gold project on similar low cost terms as Simba and Nyakafuru, which could be announced at any moment this year.
Early to mid 2023, I'd expect a group resource of well over 3miloz. Whether the gold price is $1800 or $2100, do the math against a resource of that size and you'll see how massively undervalued this is down at a £10-15mil mcap. Especially when we're trading under NAV.
A company that'll be churning out solid revenues this year at 1000-2000oz per month and has such a significant resource will re-rate sharply going forward. You can't ignore that in the junior space.
Chief executive of Caracal Gold Plc, Robbie McCrae, said:
"Franck's appointment as Head of Exploration comes at a crucial time for Caracal, as we ramp up exploration at our flagship gold mine at Kilimapesa, where we are investing significantly on our exploration activities, aimed at boosting JORC resources to over 1.5Mozs this year.
1.5miloz+ on the cards for just Kilimapesa this year with all the plant upgrades and additions well underway.
I also suspect we'll land the additional license for Nyakafuru which will take take the resource their to over 1miloz in the first instance.
+ Simba project and we're looking at somewhere between a total group resource of 2.5mil-3mil oz this year with gold production at 2000oz per month.
Take advantage of these dips and put them away, as sooner or later this will re-rate. The seller will clear off soon below placing level.