Predictive Discovery - Unlocking West Africa's Next Major Gold Deposit

• Predictive Discovery believes it is developing West Africa's next Tier One gold mine. The company recently reported a resource of 5.38 million ounces, with 77% (4.14 million ounces) in the indicated category.
• They are heavily involved in drilling projects in Guinea, West Africa, particularly at the Bankan project.
• A key focus for Predictive Discovery is the delivery of the scoping study to the Guinea government by the end of the year.
• Predictive Discovery is backed by major shareholders like Blackrock (holding nearly 13% of the company) and is actively exploring other potential sites for gold mining in West Africa.

Predictive Discovery Ltd (ASX: PDI) is an Australian exploration company focused on discovering and developing the next major gold deposit in West Africa. With a large and growing resource base, promising exploration upside and an experienced management team, Predictive offers an attractive speculative investment opportunity.

Vast Resource and Exploration Potential at Bankan Project

Predictive's flagship asset is the Bankan gold project located in north-eastern Guinea, West Africa. Bankan already hosts a substantial mineral resource of 5.38 million ounces of gold grading 1.72 g/t, with 4.14 million ounces in the Indicated category. The resource is comprised of two main deposits - Neko with 4.89 million ounces and Bankan Creek with 0.5 million ounces. Most of the current resource resides within shallow open pits, resulting in a low strip ratio and simple metallurgy. Over 50% of the gold is recoverable through gravity processing. A comprehensive scoping study for Bankan is on track for completion in late 2023.

Beyond the known deposits, Bankan holds outstanding exploration potential. The project encompasses 35km of strike along a gold-rich geological structure analogous to other multi-million ounce deposits in the region like Siguiri and Lefa. Systematic exploration by Predictive has already delineated numerous targets capable of substantial resource growth.

Advancing Towards Development in a Mining-Friendly Jurisdiction

Located in north-eastern Guinea, Bankan lies within a premier gold belt that hosts multiple world-class deposits. Guinea has a long and rich mining history and gold is one of its major exports. Predictive has assembled an in-country team with extensive experience permitting and operating mines in Guinea. While parts of Bankan fall within the buffer zone of a national park, open pit mining has previously been permitted in such areas in Guinea. Predictive is undertaking detailed environmental and social impact studies to facilitate approval, and maintaining a collaborative approach with Guinea's government.

Strong Shareholder Base and Balance Sheet

Predictive has a solid shareholder register including 13% held by major global fund Blackrock. The company is well funded with no debt, having raised A$60 million in 2021. Predictive is trading at a significant discount to its peer explorers based on an enterprise value per resource ounce, presenting a buying opportunity.

Predictive has a board and management team with extensive West African experience including at major mines like Siguiri and Lefa. The in-country team is led by Guinea native Malietou Barry, a highly experienced geologist. Managing Director Andrew Pardey previously oversaw the successful construction and ramp-up of the Sukari gold mine in Egypt. COO Paul Roberts is focused on progressing Bankan through development.

With its large gold resource, upside potential and experienced team, Predictive Discovery represents an attractive speculative investment in a prospective gold region. The company offers leverage to exploration success and resource growth at Bankan. While some development risk remains around mine permitting, Predictive is proactively managing this process. For investors seeking African gold exposure, Predictive is worth a closer look.

The Investment Thesis for Predictive Discovery

Large and Growing Gold Resource - With already over 5 million ounces of gold resources and significant expansion potential, Bankan has the scale to support a major mine development. A multi-million ounce resource provides greater certainty on the project's viability.

Favourable Economics - The shallow, open-pittable nature of the deposit results in simple and low-cost mining. Excellent metallurgical recoveries further enhance potential profit margins for the project.

Significant Exploration Upside - Only a small portion of the 35km strike length has been drill tested so far. Near-mine targets and regional exploration offer substantial potential to add more resources through further drilling.

Proven Gold Region - Northern Guinea hosts world-class gold deposits like Siguiri and Lefa. This reduces geological risk and confirms the region's prospectivity.

Strong Backing - Support from major institutions like Blackrock provides third-party verification of the quality of the project. The company is well-funded to advance development.

Experienced Team - The board and management have an impressive track record of discovering and operating profitable mines in Africa. Their experience reduces execution risk.

Undervalued - Compared to peers, Predictive's market valuation per resource ounce indicates significant upside potential as the project progresses.

Predictive Discovery offers investors an attractive opportunity to gain exposure to a large and growing gold project in a proven mining jurisdiction, with strong upside potential and an experienced team to drive value. The company appears undervalued based on the quality of its asset base. For investors looking to add African gold exposure, Predictive is worth serious consideration.