Fortbridge Media ReleaseResource Capital Research [RCR] - Gold Road Resources Limited (ASX:GOR), March Quarter 2012Resource Capital Research (RCR) has released an updated research report on Gold Road Resources Limited (ASX: GOR).
RCR figures it is quite possible that GOR could achieve ~50kozpa initial production early in CY14 from its own plant. That would be a major milestone, but should not distract focus from the big prize untapping the major exploration potential of the Yamarna belt.
Investment Points:
GOR holds a strategic position (~5,000km2) in under-explored Yamarna greenstone belt E Goldfields, WA. Exploration & Devt budget increased to ~A$23mpa.
Cashed up to fund CY12 intensive exploration and development initiatives.
Total Yamarna resource (Atilla and Central Bore) 1.07Moz, likely to continue to increase with aggressive 150,000m p.a. drilling program for CY12.
Cluster of multiple parallel high grade zones discovered in just 10km2 around Central Bore indicates huge exploration potential for under-explored Yamarna belt.
Central Bore high grade resource - 152koz at 9.1g/t, Scoping Study completed for modest ~25kozpa truck and treat production.
Drilling aimed at proving up Atilla higher grade zones could shift focus to larger scale production through a new dedicated processing plant.
Accordingly, we envisage GOR as a potential ~50kozpa producer in 1H14 generating strong cash flow to address the huge Yamarna belt exploration potential.
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