The team that put the Karma gold mine into production in Burkina Faso for True Gold before the junior was acquired by Endeavour Mining Corp. (TSX: EDV; US-OTC: OTCQX) for $240 million in April, hopes to duplicate its success at Luna Gold (TSX: LGC) in Brazil.
Luna Gold owns 100% of the Aurizona gold mine, which has been on care and maintenance since the third quarter of 2015. During its last reported year of production in 2013, the mine turned out 79,229 oz of gold at total cash costs of US$723 per oz.
“We were quite excited when we looked at it because we were really looking for something that was undervalued in the current market,” Christian Milau, Luna Gold’s new president and CEO, said during a corporate presentation last month at the Precious Metals Summit in Beaver Creek, CO. “A lot of share prices have run up, as we all know this year, and we were looking for the next opportunity.”
“This one really had what I called its hair and warts on it and really needed to be fixed,” Milau continued. “But underlying that we felt it was a really good asset and that was the crux of our interest. We felt very similar when we looked at True Gold a couple of years ago.”
Read the entire story at The Northern Miner.