Ongoing drilling by Saturn Metals continues to find decent...

Ongoing drilling by Saturn Metals continues to find decent grades & widths of gold. The likelihood that the Central Lease resource MAY soon be revised upwards to near or over 1M oz is very real.

For a number of years i have rated this royalty as a bit of a pipe dream. That it was most likely we would never see a cent paid out.

However i now believe that we could be on the cusp of seeing this royalty turn into a valuable asset.

First of all some very important milestones must be reached. In excess of 1M ozs need to be discovered & a compelling economic case needs to be proven before mining can begin.

Now this is not something that is going to happen overnight. We are talking quite a few years down the track before there would possibly be any royalty income being paid. On a best case scenario IMO we would be talking at least 6 years. The additional gold first has to be found, a case for mining stack up & then 1 million ozs first has to be produced.

BUT the royalty starts to attract serious value from the day that more than 1M ozs has been proven up at the deposit.

This royalty is 5% of GROSS production value ( before production costs are accounted for ) Such a royalty can be sold. It is essentially a future income stream.

Based on current gold prices of $AUD2200, every 100,000 ozs over 1M equates to a royalty income of $11M.

From the latest quarterly report.........