What does 7 million ounces of gold plus 1.39 billion pounds of copper equal?
It is not every day that you can find a C$30 million market cap company that has a PEA done and a M&I resource of 7 million ounces of gold, plenty of copper (1.39 billion pounds), and exploration upside.
Euro Sun Mining Inc. (TSX: ESM) is a Canadian developer that 100% owns the Rovina Valley Gold and Copper Project located in west central Romania. And yes, they have the above mentioned resource. 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 – Romania
The Company’s Rovina Valley Project covers 27.68 km² approximately 300 km northwest of the capital city of Bucharest. Known as the “Golden Quadrilateral” this historic mining district is one of the largest gold-producing areas in Europe where an estimated 55 Moz of gold has been produced since the Roman period.
Rovina Valley Project summary
February 2019 Mineral Resource
The Project’s February 2019 Mineral Resource estimates a Measured & Indicated Mineral Resources of 396.4 million tonnes containing 7.0 million ounces of gold grading 0.55 g/t and 1,390 million pounds of copper grading 0.16% (10.11 million ounces of gold equivalent). The Project consists of three distinct deposits, Rovina, Colnic, and Ciresata, which define a north-northeast trend over a distance of 7.5 km.
Scott Moore, President and CEO of Euro Sun Mining Inc. states: “The Rovina Valley Project is roughly 10 million ounces of gold equivalent. That is broken down into 7 million ounces of gold and a billion and a half pounds of copper. You get exposure to both the metals because we recover both quite significantly in processing.”
The February 2019 Preliminary Economic Assessment summary for the 1st stage of the Rovina Valley Project
The 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. This should be substantially improved in the BFS (mid 2020) if the mine life can be significantly extended.
An environmentally and socially responsible project
With no wet tailings facility and the non use of cyanide anywhere in the project, the Rovina Valley Project has been designed to be one of the most environmentally responsible gold projects globally and gives a clear example of a project that meets today’s investor mandate for Environmental Social Governance companies in which to invest. This conscientious decision was made by both Euro Sun and the Romania government to make this a better environmentally and socially responsible project.
A second project – Stanija Prospect
Euro Sun Mining also has a prospecting permit for the Stanija area, located approximately 3 kilometers east of its Rovina Valley Mining Licence. Also located in the highly prolific Golden Quadrilateral mining district, the Stanija property covers 42 square kilometers. Based on results from this historical work, Euro Sun has already identified several exploration targets within two target areas.
Euro Sun recently announced a brokered private placement offering. The Offering was led by PI Financial Corp, where Euro Sun will issue a total of 8,610,000 units of the Company at a price of C$0.36 per Unit for gross proceeds of C$3,099,600, of which Euro Sun have said they intend to use for the advancement of its Rovina Valley Project and for general corporate purposes.
Overall Euro Sun Mining offers investors a great valuation entry point into a large scale Romanian gold-copper porphyry project that is already quite advanced with 7.0 million ounces of gold, and 1.39 billion pounds of copper. Given the good infrastructure, mining licence granted, exploration upside, and progress towards a Bankable Feasibility Study (BFS) in 2020; Euro Sun Mining should definitely be on investor’s radar.
Euro Sun Mining is headquartered in Toronto, Canada; and has a market cap of C$30 million.