RE:RE:RE:RE:Tracing high-grade gold at Golden SummitIt's difficult to understand what Kinross did what it did with the offer of $US 93M for 70% of Peakgold. Several comments below.
- Too pricey, some C$185M for (scaled up to) 100% of Peakgold, presuamable K wanted the whole thing rather than just 70%;
- high initial CapEx of C$143M, just to dig up the ore (no tailings, etc...);
- 1Moz at 6gpt which would feed the Fort Knox mill for about 3-4 years (from 2024-2027)
- The ore has to be trucked 400km (from the south) which would cost quite a bundle, say roughly the grade would be knocked off by 1gpt to pay for transportation, based on WM experience withe their bulk sample processing.
- Freegold has a maket cap of C$239M with a potential RE of more than 10Moz sitting just a few km from Fort Knox (grade is higher than that of Fort Knox, 0.69gpt for the Dolphin instrsion and most likely >1gpt (a conservative lower bound) for the Cleary Vein System, as indicated by recent drilling, holes 2001 to 2010. Note: High grades up to 169gpt were incepted in more than 50% of the holes drilled, plus one old hole GSCL1221 with 191gpt/1.5m.
So, some analyst was saying that Kinross has some good reasons to ignore FVL? Noway! Bet that Kinross is watching FVL like hawk. But be careful, one little snooze then i K could lose FVL to a competitor (it could be Kirkland Lake?... since ES is a major shareholder of FVL and he still has a good connection with KL).
GH11
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BlueChipper2020 wrote: GreekGoldGuy Kinross did which is why they bought a small junior 400Km away. The junior as a recall had about 1M ounces at about 6gpt. They wanted some higher grade ore to feed the mill. Having said that, we have no idea what will happen in the future. KINROSS like any large producer will do what is in their best interest and money doesn't grow on trees. Also with Sprott such a large SH in FVL you can see a lot of surprises in the future. FVL success does not revolve around Kinross but continuing to drill out the property. The rest will take care of itself.