If I am a scammer than why did they just value this at 30 cents?
Fundamental Research keeps "Buy" rating on Goldrush Resources
Goldrush is exploring for gold in the West African country of Burkina Faso in areas underlain by the West African Birimian Greenstone Belts which have a prolific gold production history.
(CVE:GOD)(OTCQX:GDRRF) was kept at "Buy" with a fair value estimate of
.30 by Fundamental Research after the Africa-focused explorer released an updated resource estimate for its Ronguen project.
Goldrush is exploring for gold in the West African country of Burkina Faso where its permits are all located in areas underlain by the West African Birimian Greenstone Belts which have a prolific history of gold production.
In July, the updated resource estimate for Ronguen increased the resource to 8.5 million tonnes Measured & Indicated, grading 1.22 grams per tonne (g/t) gold. For the Inferred category, the resource was 890,000 tonnes grading 1.85 g/t gold compared to a 2008 calculation of 5.90 million tonnes Inferred.
This new resource was based on 28,861 meters of drilling completed during the 2010-2011 program and the company plans to complete a Preliminary Feasibility Study for the property by the end of the fourth quarter of 2012.
"The fresh rock potential of the [Ronguen] deposit has not been as thoroughly tested, leaving the possibility of a greater resource still to be explored," Fundamental Research analyst Siddharth Rajeev said in a note.
The company is planning on further trenching in order to intersect the newly interpreted strike of the South zone.
"We believe this would serve to expand the mineralization at Ronguen, if the IP identified zone proves to be mineralized," Fundamental's Rajeev said.
The company has also acquired three highly prospective exploration permits in Burkina Faso known as Rima, Pompoi, and Midebdo.
In June, Goldrush released assay results for 6 diamond drill holes, totaling 618.5 metres on the Salbo permit located 35 km south of the Ronguan project.
"We believe these initial results show potential for the property. However, further infill drilling is needed to confirm continuity of the mineralization," Fundamental Research said in its note.
Initial drilling at the company's Ouavousse permit began in December 2011, following the identification of seven high priority targets through field mapping and sampling.
Highlights of drilling include hold OUKR11-029 which encountered 5.01 g/t gold over 5 metres, including 20.1 g/t gold over 1.0 metre and hole OUKR11-001 which discovered 8.67 g/t gold over 2 metres.
"We believe these initial drill results are positive and demonstrate the potential to identify significant mineralization in the north-eastern area of the permit," Fundamental's Rajeev said.
Goldrush currently has
.03 million in cash. The CAPEX budget for the rest of the year is $1.0 million to $2.0 million which means the company will have to raise up to $2 million to $3 million this year.
Management expects to close an equity financing in the next month or two, Fundamental Research said.
Acknowledging the research report, Goldrush confirmed it recently expanded and upgraded its resource at the Ronguen gold deposit in central Burkina Faso, providing an asset which is oxidized and amenable to low cost heap leach processing.
Ronguen is located in the well-endowed Boromo Greenstone Belt. The Boromo Belt contains a near-surface global estimated resource in excess of 13 million ounces of gold in seven of 17 deposits enumerated in the country.
Burkina Faso is a politically and economically stable West African democracy that relies on mining and farming as its primary sources of foreign exchange.
The country has seen gold mining fluorish, with six new mines coming to production in the last five years vaulting Burkina into the position of fourth largest gold producer in Africa in 2012, and the third largest site for gold exploration on the continent