I was looking again at the market capitalisation comparisons Siren Gold included in their presentation below, to highlight the significant capital gain their shareholders enjoyed as drilling results and a JORC resource we're released.
When Remelius took over Spectrum Gold, (for the small Penny West Gold Deposit of 85,000Oz @ 21grams/tonne of gold deposit for $A200million) in February 2020.
The gold price at the time of the takeover was only $US1530/Oz or $A1950/Oz.
The gold price today is at $US1,800/Oz or $A2,480/Oz.
A market capitalisation of $A200m for Siren Gold equates to a share price of approximately $A200m/80m shares = $2.50.
If you look at the geology of Penny West, the gold started from 200metres below the surface of the main gold zone.
Whereas Siren Gold has already confirmed high grade gold at surface (in thick mineralised quartz all the way down to ~75metres. It is much cheaper to mine Siren's gold than Penny West's as well as for gold production to be much higher per tonne of rock.
It will be interesting to see the next batch of drilling results from Siren between the Bruno shoot and McVicar lode as well as drilling from Big RIver.
Ann: Siren Strikes Significant Gold Mineralisation at Reefton, page-52
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