There is plenty of surface/near surface gold in and around both Brumby and Contessa and some places in between.
Most of it though, especially Contessa, is not in the primary zone. Where is the Contessa source?
Is the gold at Brumby mainly secondary too? I don't know. All I know is this comment in the 15/8 ann: The host to mineralisation at Brumby is distinct from the diorite host at Contessa and is relatively fresh rock from close to surface.
I think that both zones will deliver 'the goods' one day. The way things are going though I reckon that Brumby will be first. The upcoming drilling program should tell us a lot.
Money will be needed of course. Another CR is on the cards. Maybe the expected new owner of Plutonic will want to play along. It's Billabong Gold and it could be the new owner as early as 30/9. Below is the Annexure from NST's ann 15/8/16.
"Pursuant to a legally-binding conditional sale and purchase agreement dated 12 August 2016 with Billabong Gold Pty Ltd (SPA), Northern Star has agreed to sell the Plutonic gold operations as a going concern to Billabong Gold Pty Ltd subject to satisfaction of conditions including FIRB, Ministerial consents, third party consents in respect of non-material rights over the Plutonic tenements, Billabong Gold finance for the completion cash payment and Northern Star achieving minimum production levels within certain cash operating costs for June, July and August 2016. Billabong Gold will pay Northern Star:
# A$12.5 million cash payment at completion of the SPA;
#if Billabong Gold’s parent 2525908 Ontario Inc is listed on TSX or TSX-V at completion or lists up to six months after completion of the SPA, it will issue shares to Northern Star to the value of A$25 million at the “Go Public” issue price, or, shares delivering 33% interest to Northern Star (whichever is greater) plus one board seat;
# If Billabong Gold’s parent is listed on TSX or TSX-V at completion or lists up to six months after completion of the SPA, one 10 year warrant for every two shares issued to Northern Star exercisable at a 100% premium to the “Go Public” issue price (the Black-Scholes value of the warrants is in the range of A$4 million to A$8 million);
#If Billabong Gold’s parent is not listed on the TSX or TSX-V within six months of completion, a cash payment of A$25 million will be paid in lieu of the shares and warrants;
# Milestone payment capped at A$10 million where A$2.5 million is payable for each additional 250,000 ounces of NI 43-101 compliant indicated resources (or better) identified by Billabong Gold on the Project tenements as at 30 June 2016 in excess of 1,717,000oz1 JORC 2012 measured, indicated or inferred Mineral Resources; and
# a 2% net smelter royalty on production between 300,000oz and 600,000oz of refined gold generated from the Project, capped at A$10 million. Billabong Gold will be entitled to buy the royalty earlier for A$6.5 million.
The parties are targeting completion for 30 September 2016."
LSR Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
(20min delay)