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Fundamental Research has Initiated coverage on Guyana Goldstrike (TSXV:GYA)

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Analyst Sid Rajeev gives Guyana Goldstrike a buy rating and a fair value estimate of $0.58 per share, a premium of 93% to the $0.30 closing price on November 21st, the day the report was issued.

Additional Information:

Company: Guyana Goldstrike
Website: http://www.guyanagoldstrike.com
Stock Symbol: TSXV: GYA
Date Published: Nov 27, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Today’s buy recommendation comes from Fundamental Research Corp.

Analyst Sid Rajeev gives Guyana Goldstrike a buy rating and a fair value estimate of $0.58 per share, a premium of 93% to the $0.30 closing price on November 21st, the day the report was issued.

Guyana Goldstrike is advancing the Marudi Gold project, which has an active mining license.

The project, consisting of approximately 13,500 hectares, is located 230 kilometres from the town of Lethem in southern Guyana.

Marudi has near-term production potential from the alluvial areas and the saprolite, a thoroughly decomposed, weathered, and porous rock, which overlies a hard-rock host.

The company is currently generating revenues from a 10% royalty on artisanal mining on the project area.

In the 12 months ended September 2017, a total of 1,528 ounces of gold was produced, which resulted in payments to the company totalling US$178,000 from the 10% royalty.

Management expects to generate US$250,000 in royalty sales in the next 12 months from sales of approximately 200 ounces of gold.

There is good infrastructure in place, easily accessed with an all season road through an open savannah.

More than US$30 million in historic exploration has been spent on the property, including 42,000 meters of diamond drilling.

A historic resource estimate from 1995, on two mineralized zones, the Mazoa Hill and Marudi North, totaled approximately 472,000 ounces of hard-rock gold.

The company has recently announced that it is converting the historic resource estimate of the Mazoa Hill zone into a NI 43-101 compliant resource.

The company has also initiated a multi-phase exploration program to expand the mineralization on the property through the discovery of new zones and areas.

Analyst Sid Rajeev stated: “The industry has been experiencing a trend of declining reserves and production, which we believe will encourage larger companies to seek high-quality and undervalued assets to add to their portfolios. Based on Marudi’s upside potential, we are using 100% of the historic resource estimate for valuation purposes.”

Guyana is English speaking, with British common law, and an established Mining Act.

The country is relatively mining friendly, having ranked 45th out of 104 mining jurisdictions worldwide as per Fraser Institute’s 2016 annual survey of mining.

According to the company, management, board members and key stakeholders currently own a total of 22 million shares, or 59% of the total outstanding.

The shares are trading at $0.32, well below Fundamental’s fair value price of $0.58, and with 37.4 million shares outstanding, the company is capitalized at $12 million.

For more information please visit the company’s website www.guyanagoldstrike.com, contact Peter Berdusco, President & CEO at 877-844-4661 or email info@guyanagoldstrike.com.

I’m Samantha Deutscher for Investmentpitch Media