Targeting low risk, low cost gold projects in North and South America
Gold’s first evidence of human interaction occurred in ancient Egypt around 3,000 B.C. Gold played an important role in ancient Egyptian mythology and was prized by pharaohs and temple priests. It was so important that the cap-stones on the Pyramids of Giza were made from solid gold. The Egyptians also produced the first known currency exchange ratio which mandated the correct ratio of gold to silver: One piece of gold was equal to two and a half parts of silver. This is also the first recorded measurement of the lower value of silver in comparison to gold. In 1792, the United States Congress made a decision that would change the modern history of gold. Congress passed the Mint and Coinage Act. This Act established a fixed price of gold in terms of the U.S. dollar. Gold and silver coins became legal tender in the United States.
Para Resources Inc. (TSXV: PBR) (“Para”) is an in-production Gold mining company with projects in Colombia, Arizona and Brazil. Para specializes in low risk, low cost gold projects in North and South America that have strong development potential. Their strategy is to search for properties with good historical potential that are already permitted. They have found two such properties – The El Limon mine in Columbia and the Gold Road Mine in Arizona. Geoff Hampson CEO of Para Resources stated: “We are looking for a relatively low cost entry point to build something of real value.”
El Limon Mine, Colombia
Their El Limon mine is in an area that has been mined continuously for the past 150 years at 10-12 g/ton. Para has been upgrading the plant to increase production to the daily permitted amount of 400 tons (1500-1800 oz) per month. The Company is working with local surface miners who have been mining illegally. With the Colombian government’s assistance, they have been able to get many of these miners licensed. Part of this agreement is that they must sell the ore to the mine, an arrangement that has been working well and brings many benefits to the local economy. Para Resources remain focused on mining underground with additional exploration to confirm the previous owner’s results. The mine has a targeted production of 17,000 ounces per year at an average AISC of $785 per ounce.
Gold Road Mine, Arizona, USA
The Gold Road Mine in Arizona is in a historic mining region. Para Resources have accumulated several mining claims around their main property. The 88% owned mine covers 279.07 acres (112.74 ha) of 18 patented claims. Para acquired the mine, patented claims and 500 TPD CIP mill and processing facility including all rolling stock, vehicles, laboratory and other assets. The Companies May 2018 PEA states a 7 year mine life with a 215,000 ounce gold resource and a NPV of $104 million at an assumed price of $1,200 per ounce of Au. The Company state there is a large exploration upside from the historic adjacent claims, where over 1.3 million ounces were produced at an average grade of 23.66 gpt. Shutdowns were due to the war effort in 1942.
Para Resources objectives for 2018 are to ramp up production at EL Limon by increasing head grade to 8 gpt and producing 1,000+ ounces of gold per month, and concentrate of 225,000 tonnes of historical tailing’s at 3 gpt to 30 gpt to be added into leach process after the mill. They also plan to increase cash flow to positive US $500,000 per month from current break-even during commissioning. To achieve a projected combined production of 35,000+ ounces of Au increasing to 45,000+ in 2019 and $20+ million USD in cash flow, and to have exploration drilling in Colombia and Arizona to commence in late 2018.
As stated above, investors in Para Resources have many near term catalysts to look forward to. Added to this the Company is a growing gold producer with a low cost of production.
Para Resources Inc. are Headquartered in Vancouver, BC Canada and have a market cap of C$ 28.7 m.