Big River Gold

Primary ticker: ASX:BRV
Stage of development: Exploration
Commodity: Gold
Project to promote: Borborema Gold Project
Project location: Brazil

Live financials

Cash: A$3.3M
Debt: NIL

Major shareholders:
Copulos Group 38%
SG Hiscock & Co 9%
Retzos Group 6%

Big River is a debt free, cashed up company which is well advanced in developing the 2.5M ounce, Borborema Gold Project in NE Brazil.

The project is fully permitted to commence mining, located in a semi arid part of Brazil with excellent infrastructure and has strong local and Government support resulting in fast track approvals and tax benefits.

BRV completed the Definitive Feasibility Study (DFS) in December 2019 which demonstrated that the initial Stage 1 could open pit mine a portion of the 2.5Moz resource to recover 730,000oz over 10 years at an AISC of US$839/oz through a 2Mtpa industry standard CIL plant. The first 4.5 years would see average production of 84,500oz pa at an AISC of $759.

A mine expansion is anticipated in the first few years.

The DFS was undertaken at a gold price of US$1400/oz with capex, including pre-production, estimated to be approximately US$105M for an after-tax IRR of 42% and NPV(8%) of US$203M.

At a gold price of US$1700 the NPV increases to US$326M with subsequent currency changes and tax improvements likely to increase that further again

The company is actively seeking project funding to develop Borborema.

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Management Profile

Andrew Richards – Executive Chairman

Geologist and company manager with over 35 years international experience in gold, base and industrial minerals at the exploration, development and mine production level. He spent 7 years in a senior banking project finance role and subsequently was involved in M&A and been MD/CEO and on the boards of both ASX and AIM listed companies.

What is your rationale for attending 121 Mining Investment?

Looking to finance the development of the 2Mtpa Borborema Gold project in NE Brazil, invite cornerstone investors on to the register to mature the shareholder base and generate on-market support.

What recent news would you like to highlight to investors attending?

Recent updates were provided to reassure shareholders of our inherent strengths during the Covid19 pandemic and our outlook for the future (24/3/20), presentation to PDAC (3/3/20) and mica testwork progress (18/2/20)

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Improve share price, market recognition and share registry strength
Finalise detailed design and capex improvements off DFS recommendations
Pursue project finance opportunities

6 Months:

Finalise project funding.
Appoint client project team to accelerate development.

12 Months:

Commence physical construction and move to commissioning at rate of >80,000oz pa for first 4 years (AISC US$759/oz)

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Securing project finance in a timely fashion due to Covid19 – talks continuing with encouraging responses but looking at alternative financing opportunities.

Low share price suggests high dilution if equity raised as part project finance – looking to increase share price through series of positive developments and promotion. Do not require to raise equity now but will consider to attract the right partners.

What do you think makes your company such a compelling investment?

Large, low cost gold project with god expansion potential

Excellent project in a very attractive location (environmental and infrastructure)

Project is very advanced with all permits in place to allow commencement of production and strong local and State Government support with allowances and tax benefits.

Company is well funded and has no debt.

Highly experienced corporate and project management team in place.

Analyst Insight – provided by Independent Investment Research

Big River Gold is an ASX-listed minerals exploration company, focused on advancing its wholly owned Borborema Gold Project in Brazil.

The project is located in the Seridó area of the Borborema province, within the State of Rio Grande do Norte in north-eastern Brazil. Borborema consists of three mining leases covering a total area of 29 sq km, along with freehold title to the property over the main prospect area.

An open-pit gold project with strong economics, the company is focused on advancing Borborema towards a mine construction decision. All major permits required to commence construction of the mine have been granted.

The Borborema project is mineable as an open-pit and scalable with staged developments, with initial metallurgical test-work returning recoveries of over 93%. The ore body is consistently 20m – 50m thick, remains open in all directions and increases in grade and true width with depth. The resource and reserve have been clearly established and the project significantly de-risked through the 95,000m of drilling that has been undertaken at the project. This work has highlighted a continuous and consistent single ore body, approximately 3.5km long with a higher-grade core that can be optimised in the mine plan.

Borborema has a 2.43Moz JORC Code compliant Mineral Resource estimate and a 42.4Mt Ore Reserve containing 1.61Moz gold at 1.18 g/t, with a completed pre-feasibility study and approved environmental impact assessment. In December 2019, a Definitive Feasibility Study (DFS) was completed which confirmed the Project’s economic viability and robustness. Subject to financing, Big River intends to commence mine construction in 2020 and envisages a ~71Koz pa operation with an +10-year mine life. The first 4.5 years will see an average 85Koz p.a. production at an AISC of US$759/oz.

Due to the prioritisation of economic projects by the region, the project enjoys strong local and governmental support with the company encouraged to fast-track the development of the project following the issue of the installation licence.

The company also owns the Juruena and Nova Astro assets, where there is potential to identify economic and significant ore bodies in a gold district that is attracting interest from major mining companies.