Reunion Gold - Unlocking Value in Guyana's Gold Sector with Rapid Advancement & Resource Growth

• Reunion Gold is an exploration and development company operating in the Guyana Shield, South America, with a promising project called OKO West in Guyana.
• The company recently released an updated resource estimate, showing a 38% increase in total ounces to 5.9 million, with a higher-grade underground resource.
• Reunion Gold has a strong cash position and is moving the project forward quickly, with a Preliminary Economic Assessment (PEA) expected in May 2024.
• The company is conducting further exploration and drilling with eight current active drills to expand the existing resource while advancing studies and permitting in parallel.
• Reunion Gold's CEO believes the project has the potential to be a tier-one asset, attracting interest from major mining companies.

Reunion Gold's OKO West Project in Guyana

Reunion Gold, an exploration and development company operating in the Guyana Shield, South America, presents a compelling investment opportunity for those looking to capitalize on the growing demand for gold. The company's flagship project, OKO West in Guyana, has shown remarkable progress and potential, making it an attractive prospect for investors seeking exposure to the gold mining industry.

Updated Resource Estimate

In February 2024, Reunion Gold released an updated resource estimate for the OKO West project, showcasing a significant increase in total ounces and higher-grade underground resources. The combined indicated and inferred resources now stand at 5.9 million ounces of gold, a 38% increase from the previous estimate in June 2023. This impressive growth in ounces is a testament to the deposit's continuity and the company's ability to add ounces through cost-effective drilling.

Rick Howes, President and CEO of Reunion Gold, commented on the resource update, stating, "The fast growth in the ounces is indicative of the deposit itself and the continuity of the deposit and our ability to add those ounces through just relatively simple pattern drilling."

Interview with President & CEO, Rick Howes

Rapid Project Advancement

One of the key factors that sets Reunion Gold apart from its peers is the speed at which the OKO West project is progressing from discovery to potential production. The company is well-funded, with a strong cash position, enabling it to advance studies, permitting, and exploration in parallel. This approach significantly reduces the timeline for the project to reach production, which is expected to take just six years from discovery, compared to the industry average of 16 years.

CEO Rick Howes emphasized the importance of this rapid advancement, stating,

"This one, you know, we're financed, we're well-funded, we're sitting with a good cash position, we can move the studies along, we can move the permitting along, we can move the exploration along all in parallel, and we can, in a supportive jurisdiction, get the project up and running fairly quickly."

Upcoming Milestones

Investors can look forward to several key milestones in the coming months, which are expected to further enhance the value of the OKO West project. The company is on track to release a Preliminary Economic Assessment (PEA) in May 2024, providing a more detailed understanding of the project's economics and potential.

Additionally, Reunion Gold will continue its exploration activities, with eight drills currently active on the site. The focus will be on expanding the existing resource, converting inferred ounces in the underground resource to the indicated category, and exploring new targets identified through geochemical and geophysical work on the property.

Potential for Consolidation

The OKO West project's scale and potential have not gone unnoticed by major mining companies. With the project's proximity to G2 Goldfields' project to the north, there is a possibility for consolidation in the region. The combined ounces of both projects could result in a tier-one asset, attracting the interest of major players in the gold mining industry.

CEO Rick Howes shared his perspective on the potential for consolidation, stating, "From a major's perspective, they would be looking at it to see if they could create a 400,000 to 500,000-ounce producer with at least a 15-year, maybe 20-year life if they could get there. That's kind of the target range that puts it into tier one."

Reunion Gold's OKO West project in Guyana presents a compelling investment opportunity for those seeking exposure to the gold mining industry. The company's recent resource update, rapid project advancement, strong exploration potential, and the possibility for consolidation make it an attractive prospect for investors. With a well-funded and experienced management team at the helm, Reunion Gold is well-positioned to create significant value for shareholders as it advances the OKO West project towards production.

The Investment Thesis for Reunion Gold

• Significant resource growth: The updated resource estimate showcases a 38% increase in total ounces, with total contained gold in open pit and underground Indicated Resources increased by 72.4 % relative to the June 2023 MRE following the company's released news, demonstrating the project's potential for further expansion.
• Rapid project advancement: Reunion Gold is well-funded and is advancing the project quickly, with a PEA expected in May 2024 and potential production in just six years from discovery.
• Strong exploration potential: The company is actively exploring the property, with eight drills currently in operation, focusing on expanding the resource and identifying new targets.
• Potential for consolidation: The OKO West project's scale and proximity to other projects in the region make it an attractive target for major mining companies, potentially leading to a tier-one asset.
• Experienced management team: Reunion Gold's management team has a proven track record in the mining industry, with the expertise to advance the project and create value for shareholders.

Macro Thematic Analysis

The current macroeconomic environment is highly favorable for gold, as evidenced by the recent surge in gold prices, which hit $2,200 per ounce in March 2024. This price increase is driven by several factors, including a shift away from the US dollar as the reserve currency of choice and central banks purchasing gold as an alternative to holding US dollars.

As CEO Rick Howes pointed out,

"The underlying macro activities are driving it, particularly the move away from the US dollar as the reserve currency of choice. Reserve banks buying up gold as the alternative to holding US dollars has been one of the key reasons for the recent move in the gold price."

This trend is expected to continue, as investors seek safe-haven assets amid global economic uncertainty. Gold has historically performed well during times of economic turmoil, and the current macroeconomic landscape suggests that the demand for gold will remain strong in the coming years.

For gold mining companies like Reunion Gold, this presents a significant opportunity. With a high-quality asset like the OKO West project and a robust gold price, the company is well-positioned to create substantial value for shareholders. As the project advances towards production and the gold price continues to rise, investors can expect to see a corresponding increase in the value of their holdings.