Exploring for gold at Gold Ridge, Arizona
In talks to buy oil and gas concession in Romania
To take a blended approach at Gold Ridge using gold from waste dumps
What it does:
Metal NRG PLC's (LON:MNRG) main focus is on its Gold Ridge Project in Arizona, acquired in November 2018, which encompasses three previously-producing gold mines known as Gold Prince, Gold Ridge and Dives mines, which are over a 1.8km strike within prospective 5km long vein swarm.
The three mines contain high-grade gold bearing quartz-sulphide veins, with historical production at the Gold Prince mine of 22,000 oz through to 1996.
The explorer is hoping to monetise the waste dumps and pillars left behind by previous operators, so that it can then go on to develop the significant exploration potential in the area.
MetalNRG also has an 8.5% stake in the Kamushanovskoye uranium deposit in Kyrgyzstan, which is currently on hold pending government legislation on uranium mining in the country which it proposed to ban in March.
The company has completed due diligence the potential acquisition of an oil and gas concession in Romania. The terms of the acquisition are under review, following the sharp fall in the oil price in the wake of the coronavirus crisis.
MetalNRG believes the opportunity in Romania is significant
In November, the company announced the start of a pillar gold sampling programme in Arizona after finding 115 ounces of gold on a boulder on the side of its Gold Ridge project’s waste dump.
Intentions here are to blend material from waste dumps and mined ore to optimise gold production.
The group said drilling will be carried out to delineate additional metal at the Gold Prince mine, which will be combined with ore from Level 6 and waste at Gold Ridge.
However, the coronavirus crisis in 2020 put a stop to operations on the ground in Arizona.
What the boss says:
Chief executive Rolf Gerritsen said: ''Our strategy is to invest in projects from which we can produce cash flow which will then enable us to further develop those projects.”
“The focus today is very much on Gold Ridge - three previously producing gold mines in Arizona, so a friendly environment and what we've found is a number of waste dumps, we're seeking to monetise those, generate cash so that we can further develop the substantial exploration upside that we see."
Commenting on the impact of coronavirus, he added: "With the current market turmoil, especially in the oil and gas sector, we have been presented with additional and potentially attractive transactions. Following the initial desktop assessment, we are now actively pursuing projects that meet our strategic intent, projects that offer short term cashflow and additional exploration upside that can be funded by the short term cashflow generated form the operation."
Watch the interview:
- A decision on oil and gas asset in Romania
- Permits awarded to start work at Gold Ridge
- Work starts at Gold Ridge