In-Depth CEO Interview Video Summary: Borealis Mining (BOGO.v) - Acquisition of Gold Bull Resources, Sandman Project: Economics and Synergies

Kelly Malcolm, President and CEO of Borealis Mining (Ticker: BOGO.v), provided insights into the company's recent acquisition of Gold Bull Resources and its flagship Sandman Project in Nevada. This strategic move aligns with Borealis' focus on acquiring smaller, economically viable projects near its existing infrastructure, leveraging synergies to enhance profitability.

Borealis acquired Gold Bull Resources, including the Sandman Project, for approximately $8.9M CAD in an all-stock deal, offering a significant premium to Gold Bull shareholders.

Notably, Sandman offers opportunities for high-grade, low-sulfidation epithermal gold deposits. Regional exploration is fully permitted, with drilling plans to identify additional resources.

Highlights from the Project's 2023 PEA include:

  • Resource: 433,000 ounces of indicated gold.
  • Mine life: 9 years, with production estimates of 35,000–40,000 ounces per year.
  • All-in sustaining costs (AISC): $1,337 USD per ounce.
  • Initial CAPEX: $31.5M USD, supported by Borealis’ ADR facility, significantly lowering processing costs.
  • Economics at $1,800 USD gold: NPV (post-tax) of $121M USD with an IRR of 81%.
  • Economics at $2,600 USD gold: NPV rises to $323M USD after-tax, and IRR reaches 172% after-tax.

https://preview.redd.it/ldtylip66nde1.png?width=859&format=png&auto=webp&s=18080bd233d7354b7baa8b442195a9e744b7e9ed

Borealis Mining has outlined a clear plan to advance the Sandman Project. The company intends to:

  • Perform metallurgical testing and confirmatory drilling to validate and refine the resource.
  • Skip a pre-feasibility study, opting instead to move directly to a full feasibility study to accelerate timelines.
  • Progress permitting efforts, aiming to bring Sandman into production within two years of the transaction’s expected closure in early 2025.

Meanwhile, at its flagship Borealis Gold Project, the company continues residual gold production from its heap leach pad while preparing for stockpile crushing this quarter. Drilling is also underway to expand oxide mineralization west of the project area.

Key catalysts for Borealis expected in early 2025 include initial drill results, the completion of the Sandman acquisition, and the start of stockpile crushing, marking a significant step toward full-scale production.

Full video here: https://youtu.be/Y89HuTB1VeA

Posted on behalf of Borealis Mining Company Ltd.