blue0987 wrote:
4) With EGO blessing, ICG is carrying on an extensive ongoing deep (1000m) step-out drill program, primarily clarifying the extent of the C Structures at Triangle, as well a other mineralized zones throughout the South Lamaque property.
With a current share price of between .30 - .35 cents, it would make it virtually impossible, even with a roll-back, to raise funds for both projects together without giving away to much . While raising $80 million for just the South Lamaque Project, under favorable underwriting terms, and without having heavy shareholder dilution, very difficult.
So Integra Gold brings Eldorado Gold aboard, viewing it as the best case solution for the company, and its shareholders in securing the funding needed to advance the Lamaque Project into production.
There's very little doubt in my mind that before Integra entered into last August "Share Purchase Agreement" with Eldorado Gold, Integra's Management & BOD had, lets say an understanding with EGO of what general terms they would both agreed upon when, and if the time came for either a JV, or a complete take-out.
My bet is on the side of some type of JV deal going thru, and could be made once enough of the ongoing drilling results on these C structure are released, allowing the technical team to have a fairly comprehensive handle on the scale (laterally, and at depth) of these structures, with the possibility of also waiting for the revised PEA to come out 1/H2016, so as to overview the modeling these C Structures present into the mine plan.
What's the Lamaque Project worth?
With all those above attributes, and at current market prices, a price of around $100 - $125 per/Au ounce at the Lamaque Project would be rightly justified. if not more.
Latest resource update total on the Lamaque South Property was around 2 million Au ounces, with the Sigma-Lamaque Property at around 2.5 million Au ounces, for a combined total of 4.5 million Au ounces Indicated/Inferred.
Knowing that the last Resource update was based solely on the Triangle Zone, and 43,435m of new drilling from other zones was not included, along with the current 2015/2016 drilling of 140,000m not included. The resource at only the Lamaque South Property could easily have the potential of increasing to over a 4 million Au ounces.
Without a recent updated resource estimate at the Sigma-Lamaque Property, no additional Au ounces will be added to the current resource of 2.5 million Au ounces, giving a potentially combined total resource for both properties of around 6.5 million Au ounces that may be included in any type of offer
South Lamaque Property - 4 million Au ounces x $100 million dollars = 400 million dollars.
South Lamaque Project 50/50 JV - producer to pay $200 million dollars to Integra.
Of course, all of the above is in only my own humble opinion - GLTA