RE:BTR / Spinco Valuation Nothing wrong with your math Tabman. I'm looking at it from the point of view of final selling price which is at least a year away I guess. I think there will be more drilling at some point before a final RE is done with the intention of selling it. An assumption of 1mil ozs and a value of $50 per ounce seems reasonable assuming they increase the indicated category. That will result in a SP of around 20c. Increase the ounces or the cost per ounce and up she goes Here is what they say on their website which gives a bit of recent history BEFORE BTR bought it:
Central to the Larder Lake Gold Property is the Cheminis property (the "Cheminis Mine"), which includes a vertical shaft to a depth of 1,085 feet, with six levels of which the deepest is at 1,035 feet. Intermittent past production from the Cheminis Mine has totaled approximately 260,000 tons at a recovered grade of approximately 0.104 ounces Au/ton. Gold Fields entered into an option in 2012 to earn a 60% interest in the Bear Lake properties by spending $40 million in exploration and development. After 1 year of work/ $6MM/ 59 Holes, Goldfields pulled exploration activities world wide., and terminated their option in 2015; the 59 holes have not been added to the current geological model.
Bonterra is currently modelling the Larder Lake Gold project to update the resource to a current 43-101 Compliant Resource.