"Canadian junior gold miner and explorer, Sacre Coeur Minerals, with its principal operations in Guyana in South America reckons that it offers a very low risk route to expansion through organically generated cashflow. The company's President and CEO, Greg Sparks, outlined the company's policy and plans to a group of prospective investors, and to Mineweb, at a presentation in London yesterday.
The Company has been exploring for gold in Guyana since 2005. It has narrowed its exploration focus to two major holdings, together comprising 859 sq km of the most highly prospective elements of its original portfolio. These two large blocks of properties known as the Lower Puruni Block, which includes the Million Mountain properties, and the Northwest District Block are both prime targets for hard-rock gold resources, and contain large volumes of alluvial and elluvial material. Both areas have long histories of gold production dating back to the 1800's.
At the moment Sacre Coeur's main focus is on the Million Mountain concessions where it is already producing gold from elluvial and alluvial mining operations generating significant cashflow in an extremely simple, and low cost, process. This involves primarily liberating the gold bearing material through high pressure water jets (monitors) and using a low cost gravity system to recover the mostly coarse gold, while drilling areas of soft gold bearing saprolite material, which it describes as its ‘hard rock' ore - actually a misnomer as the saprolite material can be dug out only using excavators. The cashflow from the existing operations goes part way to cover the majority of costs associated with developing the saprolite ‘hard rock' sections meaning that when this is brought into production - planned for 2014 - the capital payback would be in months, rather than in years and the IRR an extremely impressive 115% on its current calculations! ..........."