Sandspring Resources (SSP.V) released an updated resource estimate on its Toroparu gold-silver project in Guyana. The current in-pit resource contains 253 million tonnes in the measured and indicated category with a gold content of 7.35 million ounes, while there is an additional inferred resource containing 129 million tonnes of rock at an average gold grade of 0.76 g/t for a total gold content of 3.15 Million ounces. The average grade of the Measured, Indicated and Inferred categories is approximately 0.81 g/t gold which is a bit on the lower end of the spectrum for an open pit mine in Guyana, but thanks to the excellent recovery rates (95.9% for the gold), the backing of Wheaton Precious Metals (WPM, WPM.TO) and the abundance of by-products, Toroparu actually has a chance to be developed.
On top of the 10.5 million ounces of gold, the project also contains 6.5 million ounces of silver as well as almost 550 million pounds of copper. The average grades of these metals is relatively low, but every additional dollar in by-product revenue will have a positive impact on the economics of Toroparu.
It’s also interesting to see sensitivity analysis of the gold resource. Even when using a lower gold price of just $1080/oz, the total resource would still contain 7.14 million ounces in the measured and indicated resource categories, which is a decrease of just 4%. So the quality of the resource appears to be quite robust.
Go to Sandspring’s website
The author has no position in Sandspring Resources. Please read the disclaimer
