Now that the outstanding debt has been settled, management is re-evaluating the preliminary economic assessment (PEA) on the Gabbs project. The upshot is they’re assessing the benefits of incorporating the lower grade material above the cutoff grade that was not included in the last PEA. This one envisions a heap leach operation and a mill operation starting up after the initial heap leach capital is repaid, with the heap leach and mill operating in tandem for the remainder of the mine life.

CEO Joe Ovsenek highlights what this does for the company. “Now that the outstanding project debt has been settled, we can focus on unlocking Gabbs’ potential by continuing to advance the project through feasibility. Existing infrastructure at Gabbs includes paved access, power on the property and historically permitted water wells. The known zones of gold-copper mineralization at Gabbs outcrop at surface and remain open in multiple directions, and the property remains highly prospective for the discovery of new zones of mineralization.”

The new PEA is expected to be completed in Q2, and we’ll likely see a larger operation out of it. There are probably more ounces at Gabbs and thus a longer mine life than what the last PEA showed. We’ll then see it advanced to a feasibility study.

The stock is down on the news as I write, now just a C$10M market cap. It’s off its 52-week low though, and like we said before, with the debt settled management can push forward aggressively with Gabbs. I remain long and recommend the same if you own it.

Courtesy of the Gold Advisor