Its interesting what can happen when you are in a gold camp and you get scale of deposit in the multi-million ounces.
Newmont paid $547/ M and I Resource Ounce in Feb 2011 to takeover Fronteer Gold (4.2 m ozs total M and I in 3 deposits at grade of 2.3 gpt Au cut off 0.2 gpt Au). Its close to Nemwont ops so thats a very large positive, but ground holding was not as large as AMX, and prospective strike kms not close.
If you strip AMX down to only M and I Resource category, it has about 1.3 M ozs (1 gpt au cut off), and you say the rest as "evidence of scale sometime in the future", using these figures then you get a "acquisition value" north pf $500 m . If you apply a 0.5 gpt au cut off, you get a value north of $800m. And you could probably have a go at the 0.2 gpt Au cut off for good measure, and get a larger number.
Professional investors will make a call soon and time is on their side right now, ... until someone makes a move. The PFS figures will be the ones to watch, as then a better sense of value will emerge.
But no one will take scale out of the ore system. My monies on 150 km strike, off strike, possibly the intrusive related will come out of the back straits....
AMX Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
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