RE: A Heart of GoldVery good read.
The drilling program is not only aggressive but well spaced ,as is evident from the drill locations.
As a rule of thumb, Inferred resources in situ are worth about $100 per oz.
In the higher 43-101 categories ( Measured and Indicated ) , the going rate is about double that or about $200 per oz.
The main difference between Inferred and the higher categories is the level of statistical confidence ( measurement error ) in resource estimates , as modelled by the geostat model.
In spatial terms, that means higher sampling rate ( lots of infills requiring less assumptions ) and spatial consistency of the resource ,all of which reduce the requiement for blocking assumptions.
Of course, other factors also intervene , in the valuation process.
These include stripping ratio, location relative to infrastructure availability, mettalurigal characteristics , grade ( high grades means lower mining costs etc ).
In my view, VL compares very favorably and should at least meet , if not exceed peer requirements for $200 per oz.
The Leprechaun deposit mineralization starts near surface and is configured favourably for open pit mining, with mineralized intersections grading 4.43 g/t Au over 20.8 m and 2.78 g/t Au over 22 m at depths of less than 50 m below surface. Strip ratio ( waste to ore ) is therefore likley to be at or better than the norm.
Grades are very high , which is also very favorable and, along with a decent strip ratio , means lower than peer value cash costs.
The gold is coarse ,with up to 58 % being recovered by gravity alone, and over 90 % in combination with cynanide leach.....conventional milling is very favorable , which also is propitious for future u/g mining requirements.
And so on for the orther rating variables.
Finally, VL will be coveted , and a bidding war can be envisaged.
Mar's NewCo will need majority ownership of the VL resource in order to raise financing.
RIC is in dire need of a major new mine and there are several otrhers who might want to take us out.
My scenario...............a combination of cash plus equity sale of VL by MOA , with MOA continueing as an independent equity along with its two other major assets.
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