EREGL, the gold reserve in Sivas is encouraging investors.

EREGL Identified Gold Reserve in Sivas

Ereğli Demir Çelik (EREGL) subsidiary Erdemir Madencilik has identified a gold reserve in Sivas. As a result of the company's exploration activities, a gold mineralization has been discovered at a "Possible Resource" level, prepared in accordance with UMREK and JORC standards.

License Area and Reserve Information

According to the statements made, the size of the license area has been determined to be 5,804.08 hectares. So far, work has been carried out in an area of 45 hectares. The calculations are based on a gold cut-off grade of 0.5 g/t, and approximately 424,000 ounces of gold content has been identified with an average grade of 0.89 g/t gold in 14.9 million tons of ore.

Additionally, it has been reported that exploration activities are ongoing in un-drilled potential areas and within the existing modeling area of the site. Filling drillings of this mineralized area, classified at a low reliability level, are also continuing. Once the work is completed, it is aimed to classify this section at a higher reliability level to contribute to reserve calculations.

Economic Evaluation

In the statements made, it has been emphasized that the mentioned area is at a "possible resource level"; therefore, it has been stated that it "does not qualify as an economically feasible reserve." After the filling drillings and ongoing resource increase efforts, it is planned to update the resource classification and proceed to feasibility studies for reserve calculations based on the obtained data.

Stock Performance

EREGL shares started the day with a sharp decline despite this positive news. Shares are trading at 27.28 TL with a loss of 6.44%. This unfortunate situation in the shares, despite the discovery of the gold reserve, is believed to stem from the reserve not being at an "economically exploitable" level and the ongoing nature of the works.

This information is provided for informational purposes only and should not be considered as investment advice.