NEWCREST Mining may have to pay as much as$10.2 billionif it wants to wrest control of Lihir Gold after its failedbid of $9.2billion before Easter.

While Australia's largestgoldminer is saying its $3.87 ashare offer is ''still on the table'',analysts believe the companywill have to cough up as much as a billiondollars more if it is goingto find something acceptable to the Lihirboard.

Under the terms of a stand-still agreement signedbyNewcrest during negotiations with Lihir, it is blocked fromsubmittinganother bid for nine months unless it is an offer favourableto Lihir'snew chief executive, Graeme Hunt, and boardroom colleagues.

Lihirrejected an offer on Thursday of one Newcrest sharefor every nine Lihirshares plus 22.5¢ cash per Lihir share.

Most commentators believe$3.87 was always a startingpoint for further talks, particularly givenNewcrest's surprise atLihir's public rejection of its offer.

''Newcrestseemed to feel there was more to be worked outin the negotiatingroom,'' a market source said. ''If there was more tobe said, then thatwould likely include a better price.''

Lihir shares closed onThursday at $4.04, indicatingthe market is also betting on a higheroffer emerging.

Deutsche Bank analysts say they believe theupperlimits of an offer could be around the $4.30 mark, which assumes abidof one Newcrest share for every eight Lihir shares plus 22.5¢ cash.

RBSMorgans says both parties should watch out for one ofthe other goldmajors to ''potentially come in over the top'' of anoffer it believeshas room for improvement.

''Valuation doesn't look stretched.There is more roomfor a higher offer,'' RBS analysts said.

Theoffer may also have to include a takeover premiumwhich was absent fromthe last bid despite Newcrest being at pains tocall the transaction atakeover.

Newcrest is likely to provide an update to themarketthis week on its ambitions for Lihir after it has finishedcanvassingthe views of its major shareholders.