Mate as BLK develops the Wiluna 3.3m/oz underground sulphides the value will increase in the resource valuation, once they prove production with say a mix of 5-7g/t from Bulletin/EW and 9-15g/t from the high grade deposits, then there is no reason the resource should not be valued imo at $60 per ounce or more, the same as GOR, DCN, DRM and others alike??
4.7m/oz resource at $60 per ounce is $282m?
Just look at what NST paid for Jundee in May 2014, plant and infrastructure $83m, 411k/oz reserves, 507k/oz resource, POG $1300..
So on my calcs Wiluna alone with plant and infrastructure with 3.3moz resource and say 500k/oz reserves, should be worth at least double, if not triple once in production and potentially 200k.oz p.a and current POG $1650-1700??
What say $160-250m surely, maybe more?
Crazy hey BLK paid $2.4 m for this resource, and dose not have to pay till they actually produce 50-100k/oz from the deposits, people think the plant was a bargain for $2m, Wiluna was deal of the century for the 3.3m/oz? Whats that $1.40 an ounce?
And this is not including Matilda underground 'Gwalla" or further development of Williamson 2m/oz exploration target, compared to Thunder box and Gyrene, Williamson could be BLK biggest deposit yet, also not including the 7 high grade quartz reef deposit there could be 500k/oz to 1moz in just them??
BLK Price at posting:
55.5¢ Sentiment: None Disclosure: Held
