An updated resource estimate on Lumina Gold Corp.’s (“LUM”, “company”) 100% owned Cangrejos project in Ecuador showed 10.4 million ounces (“Moz”) gold and 1.40 billion pounds (“Blbs”) of copper indicated, and 6.3 Moz gold and 0.79 Blbs copper inferred. This is up from the previous 2018 estimate of nil indicated, and 8.5 Moz gold and 1.03 Blbs copper inferred.
The updated resource makes the Cangrejos project the largest primary gold deposit in Ecuador, as well as one of the largest undeveloped deposits in the world held by a junior.
The latest resource estimate included an updated estimate on the main Cangrejos deposit, and a maiden estimate on the new Gran Bestia deposit, which we believe has potential to be an excellent satellite deposit.
In September 2019, the company received positive metallurgical test results, which showed potential for significantly improved recovery rates of partially oxidized rock and saprolite rock. In a 2018 Preliminary Economic Assessment (“PEA”), saprolite was treated as waste, while partially oxidized rock had only accounted for 4% of the mine plan.
The company expects to have an updated PEA by mid-2020. The 2018 PEA had shown an After Tax – Net Present Value (“AT-NPV) at 5% of $920 million at $1,300 per oz gold, and $528 million at $1,170 per oz gold. The current Enterprise Value (“EV”) of Lumina is just C$191 million.
Ross Beaty owns 18% of the outstanding shares. Approximately 34% of the total outstanding shares are held by management, board members, insiders and institutions.
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