Impact: Slightly Positive
Galleon Gold reported results from metallurgical test work performed on a composite sample at its 100%-owned West Cache Au project in Timmins, Ontario. Gold recoveries of up to 98% were reported and test work provided further evidence that Zone #9 gold is easily liberated and amenable to high recoveries by various testing methods. Notably, the composite is a representative sample of the material that is expected to be mined from the company’s planned 86,500t exploration bulk sample. In our view, these are positive results that build upon and validate results from previous test work in 2021 (read here and here) and the PEA in 2022 (read note). Although we do not expect this news to materially move the needle on the stock in the near-term, this is a positive de-risking milestone that should clear the way for further development work. We look forward to seeing Galleon receive approval of the closure plan and other permits, which would enable it to begin preparations for surface infrastructure, including earthworks, road building, and pad construction, in advance of UG development for the bulk sample.
