JZR Gold, too good to be true?

SP now $ 0,51, Target SP $ 3,70

MC: 20,6M USD

Its flagship asset is the Vila Nova Gold Project in Amapá state, Brazil, where it holds a 50% net profit interest (NPI) through a partnership with ECO Mining Oil & Gaz Drilling and Exploration (EIRELI).

Assay results estimate 9 million tonnes of gold tailings with grades averaging 2.7g/t for projected contained gold content of over 700,000 ounces (oz).

Vila Nova hosts 9 million tonnes of tailings and JZR Gold Inc. envisions an 800 tonne per day mill.

Significant revenues are expected beginning as early as Q4 2025 with cost per ounce of ~US$500 and net gold revenues being split between partners.

Net gold revenues split between partners:
• 50% JZR Gold; 35% Eco Mining; 15% local CO-Op

CAPEX US $7.5 million with US $7.2 million advanced to date.

Recent Milestone: First gold concentrate produced on October 14, 2025, with ongoing optimization for higher throughput.

ECO states it has begun stock-piling material at the Mill in anticipation of increasing the through-put of the Mill in the near future.”

Annual Production: 25,000 oz Au.

Mine Life: 28 years by run rate of 25K oz per year (full depletion of 700,000 oz).

Target price?

FCF per year?

OCF per year 25K ounces * $ 3,500 gold (gold price today $4.345) -/- $ 1.000 cost (AISC forecast $ 500) * 50% of J.V. = $ 31,25M USD

Deduct 35%(?) for taxes, opex etc leaves $ 20M USD per year FCF.

Price target? 7,5 * $ 20M = $ 150M - MC now $ 20,6M

SP now: $ 0,51 - SP target: $ 3,70

Upside Potential:

Exploration drilling in the Vila Nova Greenstone Belt for additional hard-rock resources; no current NI 43-101 compliant reserves or resources reported.

Risks / Minus:

There are no disclosed significant shareholders holding more than 10% of the company’s ~56.77 million outstanding common shares.

Only small insider holdings and insider buying.

As of October 14, 2025, the mill was still in the “testing and optimization” phase, with personnel training ongoing. Initial operations were limited, delaying full-scale bulk sampling from Q2 2025 to Q4 2025.

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