NAGs SP Mk2, page-66

This Sulphide Gold (at depth) is a different ball game to Oxidised Gold (at the surface) like NAGs has already found at Wandean.

The surface gold is generally much low grades eg 1-2 grams average (although NAGs has readings up to about 38 gms/T at Wandean). Its quite profitable at lower grades because of lower costs, whereas gold at depth has higher costs but offset by higher grades if economical.

Thats what Fosterville is finding with grades of 58gms/T average in the Swan Zone (amazing). Drilling at surface is probably only 50m deep & costs maybe $2k/hole, whereas drill holes of 400m depth will cost a lot more, maybe 8 to 10 times more per hole? So much higher costs.

What I'm getting at is, if they find Sulphide Gold it is likely to be worth a motza, cost a motza in Capex & be much bigger scale, bigger profits etc. So I doubt NAGs will actually get to mine it.

My guess is the big boys like Kirkland Lakes, Newcrest & others would be all over it in a possible bidding war, either to takeover NAGs or offering to buy out the rights. This would have a flow on effect re the SP, pushing it much higher but to what extent would depend on what is found (if & when it is found).

Just speculating on possible outcomes.