Gold in ground is a fairly inaccurate way to ascribe value.What...

Gold in ground is a fairly inaccurate way to ascribe value.

What if it is 500m deep? Or needs to be superheated to free the gold? Or due to the type of rocks the recovery % is low? Or the cost of moving it from mine to treatment plant?

A more accurate methodology is to consider how much free cashflow every ounce of gold would give you: https://www.nexus-minerals.com/investor-information/2024/2730252.pdf

NXM sets out the following in its scoping study of a simple pit mining operation, shallow, to any mill within 150km, and high recoveries in the last 90%'s:

Scoping Study has only assessed the economics based on mining 26% of the current published 5.7Mt @ 1.7g/t for 304,000oz gold mineral resource of Crusader-Templar;

Using a gold price of $3,500 the Production Target mining inventory for the Project is approximately:1.5Mt at 1.75g/t producing 80koz gold;

The Production Target generates an undiscounted accumulated cash surplus of $67M (after payment of all working capital costs and pre-mining capital requirements)
The gold price is now about 15-20% higher which is ALL cream on top: At a gold price of $4,000 the same Production Target mining inventory generates an undiscountedaccumulated cash surplus of $106M

The upshot being that not only does NXM have gold in the ground but it is gold that is able to be mined profitably... Even these small parts of the overall resource. Lovely, shallow, high recovery...