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Golden Saint cuts diamond mining costs, goes on the hunt for deals

New chief executive will will push down costs and go on the hunt for deals
Golden Saint cuts diamond mining costs, goes on the hunt for deals
The company is currently stockpiling diamonds from its alluvial projects

The reinvigoration of Golden Saint Resources Ltd (LON:GSR) is continuing apace, as new chief executive Pierre Fourie prepares to take up his position following an extensive period of due diligence.

What’s more, the company has also appointed former project manager Adimas Prawiro as Executive Director, Business Development, and he’s already been out banging the drum for the new CEO.

“Pierre Fourie has a reputation in South Africa for being one of their top diamond engineers,” says Prawiro.

“And he’s taken on the job on the understanding that we have substantial resources in the ground.”

Fourie in a good position to know, too.

Prior to his appointment as chief executive at Golden Saint, Fourie acted as a member of Rock Forage Consulting Services, Golden Saint’s technical consultant.

Along with that experience Fourie also brings 20 years’ experience in the mining industry running right through from resource estimation to mine construction.

So far, so good.

But what of the diamonds in the ground at the company’s assets in Sierra Leone?

“We’re still recovering good stones,” says Prawiro, “although we’re entering the annual rainy season.”

He concedes that recoveries have been disappointing, but points out that with the appointment of Fourie the outlook for Golden Saint will expand and there will eventually be bigger fish to fry.

“We can expect some more kimberlite targets,” he says.

Finding the source rock for Golden Saint’s alluvial stones would be game-changing development. But it’s still some way off.

So for now, diamond mining from gravels will remain central.

“The stones are decent,” says Prawiro, “but in that context we are keeping costs down and minimising our burn rate”.

In a sense, Golden Saint is now beginning to conform to one tried-and-tested model for junior miners: to use cash flow from a smaller operation to fund bigger upside elsewhere.

“Our focus is to generate revenues from existing operations as well as to develop outside opportunities,” says Prawiro. “

We want to cover our working capital. And I think we’ll then go on from that. We’re looking for deals.”

 

 

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