600/oz is suggested the market price for turnkey projects (reserves) and below analyst seems to suggest 120/oz for developers/explorers (resources).
Pinnacles JV is 78000oz * 600 = 46.8m (pending positive PFS)
No resource estimates for the rest of the package but multiply by 120 I guess when they land. You would think that market is at least indicated resource, perhaps even measured.
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More Goldfields consolidation expected
THE merger of Dacian Gold and NTM Gold could be the trigger for more deals in the Laverton-Leonora district of Western Australia’s Goldfields.
More Goldfields consolidation expected
The combined group is expected to have a pro forma market capitalisation of $285 million and a resource base of 2.75 million ounces of gold at 1.88 grams per tonne gold.
Dacian owns the 2.5 million tonne per annum Mt Morgans operation at Laverton, which only has a three-year life under the current mine plan, while NTM holds the 679,000oz Redcliffe project within trucking distance.
Canaccord Genuity analyst Tim McCormack described the deal as logical.
"Dacian is effectively paying A$143 per resourceounce (fully diluted) based on November 13 close for NTM, compared to our peergroup explorer/developer average, which is trading on an EV/resource of circa$120/oz," he said.
"We view the modest premium as warranted,considering the low capital intensity and rapid timeline to bring the NTMresource into production."
Argonaut Securities has long seen the region as ripe for consolidation.
"A first move in the much discussed Leonora consolidation landscape," analyst John Macdonald said.
"Kin Mining's deposits are closer and Saturn's Apollo hill asset is roughly the same distance from the Jupiter mill."
The region saw some smaller scale consolidation earlier this year with Genesis Minerals' $13.5 million acquisition of the Kookynie tenements, which neighbours its Ulysses project.
Last week, Kin managing director Andrew Munckton described Kin, NTM and Genesis Minerals as potential targets in the area, with St Barbara, Saracen Mineral Holdings, Gold Fields and Dacian as the "main players" which have mills in the region.
Red 5's King of the Hills project and AngloGold Ashanti's Sunrise Dam are also in the region, while Magnetic Resources has an emerging discovery.
"There's been a significant exploration push in this area in the past 18 months or so," Munckton told the Resources Rising Stars 2020 Investor Forum last week.
"Being an explorer with a resource base is becoming a rarer thing in this part of the world."
There's a huge amount of drilling underway in the region.
Genesis has a 35,000m program underway, Saturn is progressing a 50,000m program and Kin is drilling 45,000m.
St Barbara is also actively looking at ways to fill its Gwalia mill, and a turning point could be more details around its Building Brilliance program, to be released in the next few weeks.
The company is spending $8-9 million on exploration in the region, and is also doing a feasibility study on the Tower Hill deposit.
St Barbara managing director Craig Jetson said the company would make sure it understood the potential of its own ground before it looked to toll milling, joint ventures or acquisitions.
He said the company would look at inorganic opportunities once it got its license to grow.
"And that would be only a few months away, depending on what's available."
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