Reunion Gold - Near-Term Gold Developer Bringing to Production by 2027

• Reunion Gold is advancing its Oko West gold project in Guyana towards production, targeting first gold by 2027
• The project has a maiden resource estimate of 4.3 million ounces of gold
• The company raised $70 million in September 2023 to fund studies and permitting towards a construction decision
• Key upcoming catalysts include a Preliminary Economic Assessment in Q2 2024 and a feasibility study by Q1 2025
• The company sees exploration upside to potentially expand the resource base

Advancing the Oko West Gold Project in Guyana

Reunion Gold is rapidly advancing its flagship Oko West gold project in Guyana following a sizable maiden resource announced in mid-2023, to reach a construction decision by 2025. Located in the Guyana Shield, the project boasts solid infrastructure and resides in a mining-friendly jurisdiction with an established permitting regime, enabling a relatively quick timeline from discovery to potential first gold.

With 4.3 million ounces already outlined, Oko West appears to offer the scale to support a meaningful mining operation. The company envisions both open pit and underground mining scenarios, with drilling underway to convert and expand the underground portion. While additional exploration offers an upside, the current resource base looks sufficient to underpin initial development plans.

Interview with President & CEO, Rick Howes

According to President and CEO Rick Howes, "Everything is moving on track" to meet the 2027 target for first gold. He highlights strong momentum despite some political uncertainty between Venezuela and Guyana. Howes believes the border dispute is unlikely to escalate given economic interests and recent agreements to pursue a peaceful resolution.

Howes explains that Reunion Gold took advantage of favorable market conditions last September to raise $70 million, positioning the company to fully fund studies and permitting without needing additional financings before a construction decision. Another $25 million may come from in-the-money warrants.

"That sets us up very well," remarked Howes regarding the healthy treasury balance.

He reveals that mining-focused investment firm La Mancha provided crucial support in securing the sizable financing package amid a turbulent market environment. La Mancha built familiarity with Oko West well before the fundraising through extensive due diligence. Its belief in the asset and confidence in Reunion's capacity to execute were pivotal in enabling such a substantial capital raise.

The Path Ahead

On the path ahead, Reunion Gold has set an ambitious schedule, reflecting the urgency to capitalize on the quality and potential of Oko West. Howes expects to release a Preliminary Economic Assessment in May or June 2024 encompassing both open pit and underground scenarios. The study will incorporate the most recent drill results and serve as a starting point for a feasibility study.

In parallel, the company is negotiating a minerals agreement with the Guyana government to define fiscal terms while advancing environmental studies required for permitting. Baseline fieldwork nears completion, and Reunion plans to submit an environmental impact assessment application in Q3 2024, leading to receipt of key permits around year-end. The feasibility study should wrap up in Q1 2025, dovetailing with permits to allow a construction decision in H1 2025. Detailed engineering and financing arrangements for development capital would follow.

Howes stresses the importance of exercising care at this stage to accurately gauge project parameters and costs as inputs to economic studies. He expresses confidence in the team's collective experience to appropriately scope Oko West and keep the endeavour on track, avoiding missteps that often undermine similar projects.

While expediting Oko West towards production, Reunion Gold intends to continue exploring regions around the known deposit to try to uncover additional resources. Any discoveries could be incorporated into plans. According to Howes, "if later you see the opportunity to expand it, great, you can you can put some additional capital in to expand."

Staying focused solely on advancing Oko West, the company agreed in late 2023 to dissolve an earlier alliance with Barrick Gold centered on joint project generation. With Reunion's priorities directed squarely on its Guyana project and no new opportunities of mutual interest arising, both parties determined the agreement no longer held value. Settlement terms enabled a clean break without litigation.

For investors, Reunion Gold checks numerous boxes: quality assets, excellent location, execution capability, and well-financed. The company exhibits the hallmarks of a developer rather than a typical junior explorer, evidenced by systematically tackling studies, permitting, and project planning. Although anything can happen before the anticipated first gold in 2027, Oko West appears positioned for success.

The Investment Thesis for Reunion Gold

• Flagship asset offering scale production potential from a 4.3 million ounce gold inventory
• Rapid timeline from discovery to targeted first gold in under 5 years by 2027
• Located in stable, mining-friendly Guyana with a supportive fiscal regime
• $70 million financing funds company through feasibility and permitting
• On track to reach construction decision by mid-2025
• Strong, experienced leadership team with a track record of building mines
• Continued exploration of upside around defined deposit
• Potential M&A interest given execution track record and jurisdiction

Reunion Gold presents a unique opportunity for junior developers to participate in a large, high-grade gold project on a trajectory to enter production in the near term. The company has thus far checked the boxes to systematically advance Oko West while expanding its resource inventory. Although risks remain around execution and financing, Reunion appears capable and well-financed to navigate the path towards construction over the next 18-24 months. Updates around economic studies, permits, and exploration results offer potential catalysts for share price appreciation as Reunion Gold continues on the path towards gold production.