Great Progress at New Murchison Gold (NMG) - Crown Prince Blasts into Production

There’s been some big momentum at New Murchison Gold (NMG) lately, especially around Crown Prince. If you haven’t already, it’s worth checking out the recent podcast with Alex Passmore on Dig Deep - The Mining Podcast with Rob Tyson (YouTube). It gives a solid background on Alex Passmore and an honest look at how things are progressing on site at Crown Prince just two weeks aafter the first blast.

Here are the key points:

Final approved mining leases for Crown Prince were granted on 26 June

The first blast took place just four days later, on 30 June

Since then, there have been FOUR more blasts - things are moving fast

The NMG team has wasted no time transitioning from approvals to production.

Partnership with Westgold (WGX)

NMG has an ore purchase agreement in place with Westgold Resources (WGX). WGX, which is also NMG’s largest shareholder (15.7%), is purchasing ore from Crown Prince and will receive 17% of that ore under the terms of the agreement.

First payments to NMG are expected around six weeks after WGX picks up the ore from site.

High Grades and Strong Positioning

Crown Prince is targeting an average open pit grade of 4.5g/t - well above typical industry grades

Alex believes grades may have been underestimated, with sampling results due by late August

The underground potential at Crown Prince is also strong, with Alex's estimates of 1,200oz of gold per vertical metre (vs the 900oz industry norm)

NMG expects to spend approximately $15 million to reach first revenue - with $29 million currently in the bank, there’s more than enough to get there

Looking Ahead
NMG has already granted mining leases for Abbots and Lydia, which based on Alex's comments in the Pod cast could support future scaling toward 100,000oz of gold per annum. If that plays out, a dedicated processing plant could become a smart long-term move. With strong institutional backing already in place, funding that option wouldn’t be a stretch if and when the time comes.

Share Register
While there are 11 billion shares on issue, 69% are held by the Top 20 shareholders, reflecting a tight, supportive register. Alex Passmore has addressed this directly and isn’t concerned about the structure and for the ones talking about share consolidation on Hot Copper - Not going to happen and personally if I was in Alex shoes I would be looking forward to paaying myself a dividend after first year of production too.
And now with Crown Prince streaaming towards production and strong momentum already underway, the next few months will be key and Alex Passmore knows it.