GSP Resource Models an Open Pit

Bob Moriarty
Archives
Oct 3, 2024

When I was flying airplanes we had a phrase we used on a regular basis when a decision was required. We said, “Lead, follow or get the fuck out of the way.” Because when you need a decision you have to do something and if it doesn’t work, you can just do something else. And in the worst case, sometimes getting out of the way of someone actually doing something works.

GSP Resource (GSPR-V GSRCF-OTCBB) is a tiny junior lottery ticket only six years old. They picked up a couple of options on projects in BC and have spent most of the last few years trying to raise money in the most dismal of markets. Yet gold is soaring to record high prices with copper following along thanks to the Chinese throwing money at resource markets.

GSPR is focused on their Alwin Copper Mine located next to the Highland Valley Copper Mine owned and operated by Teck Corporation. The company has drilled the past producing mine and had intentions of planning for underground operation mining the high-grade copper. Eventually someone realized that Teck was operating open pit mines and since Teck is the only natural buyer, they should design what they were doing around what Teck wanted, not what they thought best.

So the technical team at GSP Resources changed their model to an open pit and just released the block model on October 1st. Alwin had been in production for copper dating back to 1916 until 1981 when low copper prices caused the mine to close. However, GSPR had the data from 581 drill holes in over 45,000 meters of drilling.

It's interesting that while it’s known that the deposit has elements of silver, gold and moly, the core was never assayed for those minerals because the price for them was too low. So, the pit has been designed around the copper numbers and the company can only guess what the gold and silver values might be.

The Alwin project was optioned to GSPR in 2020 calling for cash payments of $200,000 with the issuance of about 4.8 million shares and a 1.8% gross smelter royalty. There will be a $125,000 payment due in 2025 on the option.

The company completed a $650,000 fund raising recently with the funds intended for exploration and development work at Alwin. The boundary with Teck is a mere 1 km away from the planned Alwin open pit. Teck has been drilling right up to the boundary. GSPR has sparce assays from gold and silver but with the higher prices today over forty years ago, the precious metals will add to the gross metal value. One assay from historical data was 29.5 meters of 4.7 g/t gold.

The single biggest advantage to new investors is the tiny market cap of the company. With today’s price the total value of the company is only about $4 million including the shares just issued. It has copper, gold and silver potential and an operating mill right next door. I’m not sure I see a downside. The more the company derisks the project the higher the potential for Teck taking them out.

GSP Resource is an advertiser. I own shares and have participated in private placements in the past. I am biased so do your own due diligence.

GSP Resource Corp
GSPR-V $.12 (Oct 02, 2024)
GSRCF-OTCQB 35 million shares 
GSP Resource website

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Bob Moriarty
President: 321gold
Archives

321gold Ltd