Borealis Mining Company Ltd (CVE: BOGO) (OTCMKTS: BORMF) (FRA: L4B0) will be soon be adding a rich gold resource to its Nevada holdings containing nearly half a million ounces.
The acquisition of Gold Bull Resources Corp (CVE: GBRC) (OTCMKTS: GBRCF) (FRA: G3G) and its Sandman asset in the northwest corner of the state will be closing in the immediate future.
In a recent interview, Borealis CEO Kelly Malcolm said the preliminary economic assessment (PEA) for the project was “spectacular,” and that its net present value was optimal for its cost. The PEA has pointed out that the mine is expected to have an exceptional 81 per cent internal rate of return after taxes.
“The Sandman project benefits from a great location close to Winnemucca, NV, strong historical and recent metallurgical results, a massive historical dataset, and robust proximal infrastructure,” Malcolm highlighted in December when the merger was announced.
Borealis aims to get the development-stage operation into production as soon as possible to help forward its aspiration of becoming a mid-tier gold producer. Sandman will produce 35 to 40 thousand ounces per annum for nine years. However, crucial permits are not expected to be in-hand for another year and a half to two years.
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Borealis extracts gold from ore pile at flagship asset
Aside from an upcoming feasibility study at Sandman, Borealis Mining’s current goal is to pull gold out of a 330,000-ton pile of ore sitting at its primary operation: the Borealis Mine.
This past-producing asset has kicked out over 600,000 ounces during its lifespan with the last being produced in 2021.
Commercial production will ideally resume at the project by the end of the year, according to Malcolm.
Borealis currently has no debt on its balance sheet, an estimated cash balance of about US$10 million and assets valued at approximately US$7.3 million. The company aims to expand its footprint in Nevada even further and potentially enter other neighbouring states.
Rob McEwen, who holds a 16 per cent stake, and Eric Sprott, are notable shareholders.
rowan@mugglehead.com
