- Firesteel Resources Inc. (“Firesteel” / “company”) is focused on advancing the Laiva gold mine in Finland back into production within the next six months.
- In December 2017, Firesteel acquired a 60% interest in the mine for $20 million through funds received from a forward gold purchase agreement. The remaining 40% was acquired in February 2018 for $5.65 million in shares.
- According to the 2016 Fraser Institute Annual Survey of Mining Companies, Finland was ranked the best mining jurisdiction in Europe.
- The Laiva mine was in production from January 2012 to March 2014. The total gold production was 71,700 oz from 2.8 million tons of ore processed at an average grade of 0.9 gpt gold, and an average recovery rate of 79% - 85%.
- Firesteel’s management believes that the mine can be operated profitably using selective mining, improved recovery and plant utilization, and better mining practices.
- A 2017 NI 43-101 compliant resource estimate on the project showed a measured and indicated resource of 151 Koz at an average grade of 1.24 gpt, and an inferred resource of 0.45 Moz at an average grade of 1.53 gpt.
- The estimated CAPEX to bring the mine back into production is $5 million.
- We are initiating coverage with a BUY rating and a fair value estimate of $0.25 per share.