Euro Sun Mining is receiving large institutional gold investor attention as the BFS is due soon

Euro Sun Mining Inc. (TSX: ESM) is developing their large 100% owned gold-copper porphyry Rovina Valley Project in Romania. The Project has a M&I Resource of 7.05 million gold ounces and 1.39 billion copper pounds, a completed positive 2019 PEA, and a 20 year renewable Romanian Mining Licence. The Rovina Valley Project intends to be a large-scale bulk tonnage open pit mine for gold and copper production.

The Rovina Valley Project covers 27.68 km² in west-central Romania and is 300 km northwest of the capital city of Bucharest. This historic mining district is known as the “Golden Quadrilateral” and is one of the largest gold producing areas in Europe where it is estimated that more that 55 M oz of gold has been produced.

The Rovina Valley Project is comprised of three main deposits less than 3kms apart – Rovina, Colnic, & Ciresata (combined M&I 7m ozs gold & 1.39b lbs copper)

Source

What to expect in the upcoming Bankable Feasibility Study (BFS): 

Of interest is that the February 2019 PEA was based on just the Colnic deposit and only on a 12 year mine life, and at a US$1,325/oz gold price. Today with spot gold prices about 40% higher than in the PEA, it means the NPV is now about 300% higher if using current spot prices. Or put in dollar terms the NPV rises from US$228M to US$684M, based on the gold prices shown in the chart below. That is a super impressive leverage to gold prices. The reverse is also true if gold prices fall back.

Added to this is the fact that the BFS will now address two of the deposits Colnic and Rovina, which can mean higher gold and copper production and/or a longer mine life (18-20 years), with minimal change to the initial CapEx. This usually serves to give the NPV a nice boost.

Furthermore if there is a higher project NPV in the upcoming BFS it will mean that the CapEx of US$339.7m is quite reasonable given the size of the resource, due to the fact that one central processing plant can serve all 3 deposits (2 initially).

President and CEO of Euro Sun Mining Inc., Scott Moore, stated to InvestorIntel:

“We are probably one of the cleanest projects out there. We don’t use cyanide. We don’t use wet tailings…..Porphyry projects usually have big CapEx. We don’t have a big CapEx,” he added, owing to cheap power, skilled labour force and great infrastructure. “It is big. We can move earth inexpensively and we can make a lot of money particularly with the simple processing that we have.”

Local infrastructure is excellent with a modern network of roads and rail in place, low-cost hydro power generation and distribution all installed, a nearby township, and available skilled labor force.

Near term catalysts for Euro Sun Mining include the BFS in late 2020, Construction License to build the project during Q1, 2021; then all going well project funding to follow the BFS and a start to project construction sometime in 2021. Longer term there is the upside potential that can come from bringing the M&I 3.8M gold oz Ciresata underground deposit also into production.

Euro Sun Mining continues to trade somewhat under retail investors radar; however a recent C$12M bought deal financing was increased to about C$23M to meet demand, with institutions grabbing C$17M of the financing. These institutions included several well known gold funds.

All indicators are pointing towards a very robust BFS to be released soon and further interest from investors. My best guesstimate would be for the NPV to be above US$700M due to higher gold prices, boosted production and/or a longer mine life. Given the current market cap is C$56M (US$42M) there should be plenty of interest generated once the BFS is released. Of course the project is in Romania (part of the EU) and is not yet project funded, which adds some risk. Management has been boosted recently with personnel to advance the permitting and engineering work, and the Board has added two independent directors. Given the recent stock price pull back it looks to be a good time to take a look again at Euro Sun Mining.

Further learning




Euro Sun Mining’s Rovina Valley Gold Project getting the attention it deserves

InvestorIntel’s Peter Clausi talks with Scott Moore, President and CEO of Euro Sun Mining Inc. (TSX: ESM)  about Euro Sun’s Rovina Valley Gold Project. “We are probably one of the cleanest projects out there. We don’t use cyanide. We don’t use wet tailings,” Scott said. “Porphyry projects usually have big CapEx. We don’t have a big CapEx,” he added, owing to cheap power, skilled labour force and great infrastructure. “It is big. We can move earth inexpensively and we can make a lot of money particularly with the simple processing that we have.”

Scott also provided an update on Euro Sun’s recently closed C$22.3 million bought deal financing. “We had $17 million of institutional demand in the financing,” he said. “The institutional demand was international, from United States, Hong Kong, Paris, and London with three of the largest funds that are out there – Ruffer, Franklin Templeton and ASA Gold taking significant positions.” Commenting on what’s coming up for Euro Sun, Scott noted that “the stock has gone from 15 cents in March to 60 cents now,” with “some significant catalysts coming up in the next 6 to 12 months.”

To watch the complete interview, click here

Disclaimer: Euro Sun Mining Inc. is an advertorial member of InvestorIntel Corp.




7 million gold ounces and 4 new gold-copper porphyry targets nearby sees huge upside potential

It is looking like the second largest undeveloped gold deposit in Europe may have a lot more gold and copper nearby. The Company behind the discovery states it has found four new gold-copper porphyry targets, with a cluster of three porphyry targets just 1.5 km apart from each other, 6 km east from their existing Colnic Au-Cu porphyry deposit on the Rovina Mining License.

The Company is Euro Sun Mining Inc. (TSX: ESM). Euro Sun Mining already has a M&I resource of 7.05 million gold ounces and 1.39 billion copper pounds at their Rovina Valley Project in Romania. According to the Company, their resource is the second largest undeveloped gold deposit in Europe and the 14th largest undeveloped gold deposit in the world.

The Rovina Valley Project location map in an emerging gold district in Romania

New porphyry discovery targets

Euro Sun’s new four gold-copper-molybdenum porphyry targets are located within the Stanija Prospecting Permit, which is 3 km east from Euro Sun’s Rovina Valley Gold Project. The permit area covers 42 square kilometers.

Reconnaissance rock chip sampling and grab sample assay results indicated the presence of porphyry-style gold-copper mineralization and gold epithermal vein-style mineralization. Results include samples with 1.39 g/t Au and 0.34% Cu porphyry style occurrence and a sample with 25.9 g/t Au and 0.005% Cu.

Scott Moore, Euro Sun’s CEO stated: “Our team has worked diligently over the past three years on the Stanija prospecting license to determine the discovery potential adjacent to our Rovina Valley Project. We look forward to the initiation process for the exclusive exploration license which is expected to occur in early 2020…..The granting of this prospecting permit by the Romanian Government clearly demonstrates that the country is supportive of new mining projects.”

The very promising Stanija Prospecting Permit is near to the Rovina Licence area

The Rovina Valley Project

Euro Sun Mining’s Rovina Valley Project covers 27.68 km² and is located in the historic mining district known as the Golden Quadrilateral. As one of the largest gold producing areas in Europe, it is estimated that more than 55 million ounces of gold has been produced since the Roman period. Rovina is the first-ever mining license issued to a non-state-owned mining company with a license to mine for 20 years, plus renewals. The Project is approved for large scale bulk mining at approximately 70,000 tpd without the use of cyanide and wet tailings.

The February 2019 PEA was based on just 29% of the Rovina Valley resource, and on 108,000 oz pa of gold production at an All-In Sustaining-Costs (AISC) estimate of US$752/oz, which is quite impressive. Despite lower grades, the scale of the project, open pit, and copper by-product credits leads to lower costs. The Pre-Tax NPV5% was $218.1 million, with an IRR of 15.4% at $1,325/oz gold and $3.10/lb copper, over a 12-year mine life. This should be substantially improved in the BFS in mid 2020 if the mine life can be significantly extended, and if gold prices stay strong.

Environmental Impact Assessment for Rovina to commence

Euro Sun has also announced they have recently appointed the Environmental Impact Assessment for the Rovina Valley Project to Bucharest based ERM Environmental Resources Management SRL.

Euro Sun Mining is definitely traveling under the radar right now. With 7.0 million ounces of gold, and 1.39 billion pounds of copper at Rovina Valley, and four very promising gold-copper porphyry targets just 3km East at Stanija exploration upside is enormous.

Euro Sun Mining is headquartered in Canada and is focused on generating value for its shareholders by advancing its 100%-owned Rovina Valley Project. The Company has a market cap of just C$ 26.2 million which looks to be highly attractive given the upside potential.




Euro Sun’s Scott Moore on the competitive advantage of being a gold developer in today’s market

“We are not an explorer. We are a developer. We have got the 10 million ounces (of gold equivalent) in M&I. We have got the mining license granted by the government. So that significantly de-risks. It (The Rovina Valley Gold and Copper Project) will be a mine…It will probably move ahead in the construction phase in the next 12 months.” States Scott Moore, President and CEO of Euro Sun Mining Inc. (TSX: ESM), in an interview with InvestorIntel’s Tracy Weslosky.

Scott went on to provide an update on Euro Sun’s acquisition of Vilhelmina Mineral Inc. which holds a 46.9% ownership interest in Vilhelmina Mineral AB, a private Swedish company with past producing mines in Sweden and Norway. He said that Euro Sun decided to up its stake in the company because they have been working on the mines for the last two years and believed that mines had potential. Scott further added that Euro Sun is working on the feasibility study and construction license for its Rovina Valley Gold and Copper Project which is an environmentally responsible gold project as it uses no wet tailings or cyanide. He also said that gold has been around $1,500 for more than 60 days and if it maintains even at $1400 it will be a whole new gold environment in the new year.

To access the complete interview, click here

Disclaimer: Euro Sun Mining Inc. is an advertorial member of InvestorIntel Corp.




Scott Moore on Euro Sun Mining’s Rovina Valley Gold-Copper Project Advantage

“The Rovina Valley Project is roughly 10 million ounces of gold equivalent. That is broken down into 7 million ounces of gold and billion and a half pounds of copper. You get exposure to both the metals because we recover both quite significantly in processing.” States Scott Moore, President and CEO of Euro Sun Mining Inc. (TSX: ESM), in an interview with InvestorIntel’s Tracy Weslosky.

Scott went on to explain that Euro Sun Mining’s environmentally responsible Rovina project is the second largest gold deposit in Europe and 14th largest undeveloped gold deposit in the world. Scott also talked on the progress on its Rovina Project towards production. Scott said that they have full authorization to do mining subject to getting the construction permit.

To access the complete interview, click here

Disclaimer: Euro Sun Mining Inc. is an advertorial member of InvestorIntel Corp.




One of the most environmentally responsible gold projects globally up 87% since the new year

When you think globally about gold and historical mining districts, places such as Timmins and James Bay in Canada, or Kalgoorlie in Western Australia come to mind. Europe gets overshadowed by these giants but did you know Romania has the second largest gold deposit in the European Union?

Euro Sun Mining Inc. (TSX: ESM) is a Canadian based development stage mining company, that is developing a world class gold-copper mine in Romania that is up 87% since the new year. Focusing on generating value for their shareholders they are advancing their 100% owned Rovina Valley Project covering 27.68 km², located in west central Romania. The property hosts the second largest gold deposit in Europe with 7.05 million oz of gold and 1.39 billion oz of copper. The Project is in a past producing region with excellent infrastructure in place; including rail, power, paved access, skilled labor, and a town of 13,000 within 5 km of the project.

Rovina Valley Project location map – 3 world class deposits within 30 km2

Rovina Valley Gold-Copper Project Resource details

Based on a 2019 resource update the project has Measured & Indicated 7.05 million ounces of gold grading 0.55 g/t and 1,390 million pounds of copper grading 0.16% (or 10.11 million gold equivalent ounces).

The region is home to multiple 5 million+ gold and copper deposits.

Preliminary Economic Study results

The Company is applying a staged multi phase development approach for the Rovina Valley Project. They have announced the results of their Preliminary Economic Assessment for the exploitation of the Colnic open pit stage, with highlights including an average annual gold equivalent production of 139,000 ounces and a phase 1 life of mine of over 12 years. Key highlights are shown below and include the post-tax NPV5% of US$168.8 million at an AISC of US$752/Oz. CapEx is estimated at US$339.7 million. The PEA was based on just 29% of the total mineral resource so there should be considerable upside in the Bankable Feasibility Study due to be completed by year end.

Scott Moore, CEO stated: “The 2019 PEA highlights a positive economic project for our initial phase of development at the Rovina Valley Project. Colnic is an at surface open pit deposit containing only 28.6% of the total measured and indicated resources at the Rovina Valley Project. Colnic will form the foundation of a multi-decade operation with the expectation of bringing the Rovina pit on-line using pre-installed infrastructure followed by the Ciresata deposit.”

As of November 2018 the Mining Licence was approved by six ministers and the Prime Minister. This license secures the mineral tenure and allows the Company to begin the formal Environmental Impact Assessment and Urbanization Certificate, both of which are currently in progress.

The Rovina Valley Project has been designed to be one of the most environmentally responsible gold projects globally. There is no wet tailings facility and the Project does not use cyanide anywhere.

Scott Moore Euro Sun’s CEO stated: “Rovina is a clear example of a project that’s meets today’s investor mandate for Environmental Social Governance companies in which to invest. A conscientious decision was made by both Euro Sun and Romania to make this a better environmentally and socially responsible project and not just to maximize profitability at the expense of all stakeholders.”

On April 11, 2019 Euro Sun Mining received authorization to begin mining activities at its Rovina Valley Project from the National Agency for Mineral Resources.

Scott Moore, CEO stated: ”The authorization to begin mining activities is further demonstration of the support for the Rovina Valley Project by the Romanian Government.”

The future looks very optimistic for both players as Euro Sun Mining powers ahead with mining authorization and further exploration towards BFS at their 100% owned Rovina Valley Project. Further exploration upside at Rovina as well as upside from Euro Sun Mining’s other project Stanija 3 kilometres east of its Rovina Valley Mining Licence.

Market cap is just C$63 million which looks very good value for a M&I 7.05 million gold oz resource.