Sacre-Coeur Minerals, SCM.v C$.30
Posted: Thursday Jun 23 11:08:01AM 2011
I bought a few shares today at .30. The stock is way down from a buyout bid of C$1.60 last year that was terminated after Severstal withdrew their London IPO. This is a junior searching for the source of multiple alluvial gold deposits in Guyana. The company has a 451K oz resource and is aggressively drilling now with a 23,000 meter program that should yield results soon. The company is also beginning an alluvial mining program with equipment entering Guyana now. It is modular and could be expanded later but will produce 300 to 400 oz/month, once in full operation. That modest production at $500 cost should help finance ongoing exploration for the source of the alluvial gold. Market cap is around C$16million so cheap versus the resource and that resource estimate could get near one million ozs after this drill program is fully digested. This could continue weak thru the summer doldrums but should get a lift as alluvial mining becomes a reality and gold is produced. Likewise the drill program is eagerly awaiting the first full lab results and the inevitable resource update.