Sonoro Gold looking to build "small operation with big returns" — analyst
Proactive Research Analyst Ryan Long speaks to Thomas Warner from Proactive London after publishing a new research note on junior gold explorer, developer and soon to be gold producer Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF).
The company recently announced the filing of a Preliminary Economic Assessment (PEA) for the Cerro Caliche Project in Mexico, and Long explains that unlike the conventional journey from a PEA to a PFS, followed by a DFS, Sonoro is swiftly advancing from the PEA straight to production.
This exceptional move he attributes to the low estimated capital expenditure ($15.5mln) for building the oxide project, and says the strategic decision aims at getting swiftly into production and creating a self-financing mechanism for its regional exploration. Although a relatively small operation, this venture is forecasted to yield around 33,000 ounces of gold equivalent over a nine-year span, translating to roughly $60 million in revenue and an annual operating cash flow of $17 million.
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