The JBY tenement is adjacent to a larger tenement (namely Phoenix Gold Mine) with a long-standing heap leach operation run by a Newmont/Barrick JV. I seem to recall that the Phoenix operation produces circa 200koz gold per annum with a similarly low grade and it's still very profitable due to economics of heap leach operation with soft oxide ore at surface. The ore in JBY tenment is hopefully similar to the adjacent ore and could be very profitably mined using a similar heap leach operation (subject to confirmation of metallurgy, that status of which I'm not sure ...
I agree that the market doesn't like the low grade of the surface deposit but I don't think Aussie investors understand heap leach operation as they are largely unkown in Australia. I understand they're common with low grade open pits in Nevada ...
And all above ignores the much deeper 1moz high grade skarn resource circa 7gpt which is wide open ..
Current market cap at 49c is only $53m. $7m cash as 31/12 (say $5m today) ==> $48m EV. Ridiculously low EV for this asset in a genuine top tier mining jurisdiction. (Nevade has been rated between No. 1 to No. 3 jurisdiction in the world in recent years.)
JBY Price at posting:
49.3¢ Sentiment: Buy Disclosure: Held
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