GSL.... Canaccord Morning Coffee........
Greystar Resources* (GSL : TSX : $5.08), Net Change: 0.63, % Change: 14.16%, Volume: 2,032,631
Me too, please! A potential $1.2-billion bid for Ventana Gold (VEN) from Eike Batista's EBX Group had shares of Greystar
hopping. Ventana is focused on the exploration and development of its La Bodega gold-silver project in northeastern Colombia.
The La Bodega project has the potential to develop into a 300,000-oz-per-year gold operation with cash costs of less than
US$325/oz. The La Bodega project is adjacent to Greystar Resources’ Angostura project. Canaccord Genuity Mining Analyst
Nicholas Campbell has believed for some time now that any potential suitor that is going to step in to acquire Ventana will be
looking at Greystar as well. Greystar has ~$107 million in cash, the largest land position in the California Vetas district and the
most advanced gold project in Colombia. The Colombian government has set November 21, 2010, as the formal hearing date for
the Colombian public to consider Greystar's Angostura project’s Environmental Impact Assessment (EIA). Based on this
schedule, an approval of the EIA and feasibility study could potentially be issued in Q1/11. The Santos government has stated
its interest in pursuing economic growth and employment through investment in Colombia’s mineral resources. Based on
Santos’ public stance, Campbell believes the Colombian government is likely to be supportive of the responsible development
of the Angostura project. |
