Reunion Gold Corp’s Oko West property in Guyana could have multimillion-ounce potential in an underexplored gold camp, broker Stifel GMP said in a note initiating coverage on the stock.
Calling the Kairuni deposit on the company's Oko West property a major new gold discovery, analysts believe there is runway to an open pit reserve of 3.1 million ounces at 2.03 grams per ton (g/t), plus an additional 440,000 ounces of high-grade underground resources still open at depth.
“The combination of broad widths of high grade coming right to surface is an excellent setup for a future high margin mining operation,” Stifel analysts wrote.
READ: Reunion Gold's Oko West project shaping up to be 'very significant discovery', says CEO
The brokerage is anticipating production of 185,000 ounces per year over 13 years at a life-of-mine site-level all-in-sustaining cost of $969 per ounce, which could be optimized to 284,000 ounces at $586 per ounce over the first three years from the low strip, high grade, easy milling mineralized saprolite.
“Guyana is a country on a growth trajectory, investing in major infrastructure that benefits a major gold mining operation,” analysts noted.
“We are initiating coverage with a Buy rating and C$0.60/sh target, and look forward to additional discoveries and de-risking at Kairuni to drive the stock higher.”
Reunion Gold's shares are currently trading at about C$0.44.
Longueuil, Quebec-based Reunion Gold is a leading gold explorer in the Guiana Shield, South America, with a portfolio of projects in Guyana, Suriname, and French Guiana.
In 2021, the company made an exciting new gold discovery at Oko West in Guyana, where to date it has outlined continuous gold mineralization over 2,500 meters of strike length and to a vertical depth of 349 meters with open pit potential.
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