Key Highlights

  • Kerr Mines Inc. (“company”, “Kerr”) recently appointed Giulio T. Bonifacio as the CEO. Mr. Bonifacio was the Founder / President of  Nevada Copper (TSX: NCU / peak market capitalization of over $500 million) since its inception in 2005, until his retirement in 2018. Nevada Copper’s is advancing its Pumpkin Hollow copper project to production this quarter, having invested over US$600 million to date.
  • Kerr is targeting to commence production at the Copperstone project in Western Arizona by Q4-2020.
  • We believe a 5,000 m Phase I drill program in 2019, on the main Copperstone zone, not only demonstrated high grades (including 16.8 m at 40 g/t gold), but also potential for further increase in tonnage. The most recent resource estimate on the project, calculated in 2018, showed a measured and indicated resource of 0.28 Moz at 7.63 gpt gold, and an inferred resource of 0.15 Moz at 6.81 gpt gold.
  • The company is planning to commence a 10,000 m / Phase II drill program in early 2020, which will continue to focus on resource and reserve expansion. Results of the Phase I and II programs will be used to update the 2018 resource estimate.
  • Management is currently evaluating potential to lower the initial CAPEX (2018 PFS showed US$23 million) by using floatation.
  • Kerr has a financing arrangement in place with Sprott, for US$25 million, to fund the CAPEX. Terms are yet to be finalized. Management is also considering alternative options to reduce the cost of capital.

Visit Arizona Gold Corp. page for more research, discussion boards and to like, and share.


Download Analyst Report :