"Morning Star Gold Acquired the assets in 1992 and spent over $40 million since including substantial amounts exploring and developing the tenements. The mine has been pumped out and refurbished to 10 level and Development driven in the upper levels to access new production areas."
"A New benefication plant has been installed and a paste backfill plant built. Supporting infrastucture includes a high speed winder, a water treatment plant, surface and underground power supplies and various site offices, workshops and a miners camp. Expenditure on these projects since 2009 is reported to have been close to $20 million"
With 60 million in development and infrastructure as well as the tenement itself I think AUL deserves at least a $30 to $40 million MC (2.1 cents per share)
Gold has become a great option in uncertain times and at AU$1750 approx. this leaves a fair bit of profit margin.
While it’s not a 2012 JORC resource MCO still reported a mineral resource of 910,000 oz Au for the Morningstar mine in 2008 including 726,000 oz Au at 11.2 g/t Au (that’s $1.2 billion worth of gold) with Rose of Denmark and other exploration targets on top.
Would be interested in hearing anyone else’s target share price or current valuation.
GLTAH
DYOR
Cheers Rb
AUL Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
