I agree BC. ARV will achieve a much better deal if they can show...

I agree BC.

ARV will achieve a much better deal if they can show that Armada is potentially a very high grade extension of he Havieron discovery.

Slide 11 of the material Newcrest presented at Citi's Sydney Gold Conference on Sept 13, showed the following for Telfer:

FY 19 Production: 452k ozs Au, 15Kt Cu
FY 19 AISC: $1,253/oz
Ore reserves: 2.0 mozs Au, & 0.20 mt Cu
Mineral resources: 6.4mozs Au & 0.59mt Cu

Telfer is running low on resource.

IMO they would be very, very, very keen to grow the feedstock for the Telfer plant. Telfer have all the skills and resources to mine at depth. Given an adjacent huge resource, it would not only extend the mine life but could possibly grow production at Telfer as well.

The money paid to Greatlands for 70% is very cheap given the potential size.

If you look at the picture below with the Eiffel tower and project a cubic space represented by the height of the tower (324 metres), it is equivalent to roughly 34 million cubic metres. Assuming 5g/ton, that could, according to my rough calculations, be as much as 16 million ozs. I think Newcrest paid something like $60m for 70% which is equivalent to approx 11m ozs in the ground based on the above assumption (and potentially more). Thatequates roughly to just $6/oz and they are still doing lots of drilling. They now have 5 rigs on site.

It has been reported that the direction of the ore body appears to be open to the North and the South where they are surrounded by ARV.

ARV should wait for the drill results from Newcrest and if they continue to indicate that the ore body could extend into Armada then start to do some drilling to prove it. If those drill results then prove identical grades and a substantial ore body, the market cap of ARV is likely to be very many times what it is now.

All this without counting the value of the Rincon leases or ARV's other asset.

No wonder HRH the Sheikh is interested and was willing to put in $750k of his own money so far.

All the above are just my thoughts based on some rough calculations and observations.
Please DYOR and form your own opinions.