RE:Wow K2 is exploding with goldThese are excellent grades, very consistent with 15.4 grams per ton for K2 m as the depth integrated average grade used in the Mett News Release..
Mineralized surface has now expanded to 295,000 sq meters which is about the same size as the entire Goldboro deposit of Signal , the FS of which estimated 1.2 million ounces of reserves at an average grade of 2,2 grams per ton.
With an average grade about 7 times greater than Goldboro, K2 would havd over 8 million ounces calibrated to Goldboro Reserves.
Divide by 2 to be conservative , and we have enough shallow gold above 250 m at just K2 ,to produce 300,000 ounces per year for a LOM of about 10 years .
WTF are we waiting for ?
Gold Valuation multiples increases according to Stage.....Production stage.. 2-3 times higher than Exploration Stage
Within Production Stage....Initial Capex negative correlation , Mine Life positive correlation, grade positive correlation , AISC negative correlation .
My opinion on NFG beginning Production by building its own mine..
Initial Capex ...Substantial ..negative to IRR
Mine Life.........very long .....positive to IRR
Grade..............Very High.....positive to IRR
AISC................LOW............positive to IRR
Long mine life, high grades and low AISC should easily outweigh the impact on IRR of substantial Initial Capex of building a mine.
But who wants to wait until 2038 ?
Who considers a buyout at 75% premium to current price as best fair value to our individual IRR ?
Not me.
We can double that by announcing early decision to mine..