Stonegate Capital Partners Initiates Coverage on Waraba Gold Limited (CNSX: WBGD)

DALLAS, TX -- February 3rd, 2023 --  Waraba Gold Limited (CNSX: WBGD): Stonegate Capital Partners initiates their coverage on Waraba Gold Limited. The full report can be accessed by clicking on the following link: https://stonegateinc.com/reports/WBGD_Initiation.pdf

COMPANY UPDATES

• Technical report released: In November 2022 Waraba released an updated technical report (NI 43-101) which summarized the available technical information for the Fokolore Project. While Waraba has not done any sample drilling of its own yet, the report details various exploratory drillings since 2007. The conclusion of this report is that high grade gold mineralization seems to be present at the project site, higher than previously expected. This is a very encouraging development that will lead management to proceed with a resource and reserve estimation as well as a pre-feasibility study.
• Established gold district: The region of West Mali that Waraba is operating in is known as the Birimian belt. This area is well known for productive gold mines. Notably B2 Gold has a mine with 7 million ounces of gold in the area and recently acquired one of WBGD’s neighboring mines, previously owned by Oklo Resources Limited. Barrick Gold also operates their Loulo-Gounkoto mine in the region, which is one of their more important mines. The productive region, along with Mali being an accommodative jurisdiction, leads to Waraba being well positioned to either sell to a strategic buyer as an exit strategy or continue to develop their current holdings in the region.
• Catalyst on the horizon: We expect Waraba to be on the cusp of an inflection point. As the technical report noted, the Fokolore Project is a relatively advanced exploration project. Due to this advanced stage and the positive results from the technical report it is our view that the Company will move to complete their Preliminary Economic Assessment before the end of 2024. Importantly, early results from this process may be available as soon as 2H23. Pending these results, we expect the market to have greater certainty into the potential that the Fokolore Project holds.
• Expenses roll off as the Company matures: In the most recent Management Discussion and Analysis it was notable that the Company had significantly less exploration expenses year over year in the first quarter of 2023. The change from $840,068 in 1Q22 vs $102,371 in 1Q23 was attributed to the completion of road construction, environment study, and installation of fencing around camp. This moderation of exploration expenses is expected to continue in the short term as the Company transitions from infrastructure driven exploration expenses. These expenses will begin to increase again as the Company begins their full R/C drilling, followed by diamond drilling.
• Valuation: Waraba Gold is expected to complete their Preliminary Economic Assessment before the end of 2024. Importantly, early results from this process may be available as soon as 2H23 and will provide greater clarity of the potential that the Fokolore Project holds. As Waraba Gold moves to complete their resource estimation and Preliminary Economic Assessment, we will be able to apply those results to determine a reasonable valuation.