Potential Investment by AEM, Akasaba Main ZoneAEM paid AEM $5M for Akasaba West (the 14 claims) back in 2014. It has been busy developing this property into a small mine to provide additional feed to its Goldex Mine, some 30km to the west. The plan is for a small production some 20,000 ozAuEq for about 4-5 years. However, AEM is a major, this kind of scale is too small for it to spend the effort (permitting, environmental, aboriginal requirements, etc...). It has to be more than the current ~0.3MozEq (low grade) inferred resource. So, AEM will do more drilling on the 14 claims.
A faster way would be to acquire the next door block, the Main Zone which has much higher grades and resource estimate, in indicated and inferred categories (OP with 0.15Moz @ 1.6 gpt and UG with0.38Moz @ 5.75gpt).
Next door is the Kettle Zone with some drilling, but there is not yet a resource estimate. Let's leave this out for PRB (since this is next to the JV between AZX and PRB, lol).
This looks quite attractive for AEM, since it fit well with its game plan. The location of Akasaba Main Zone is excellent (next door, within 2km of the 14 claims) for their planned mining operation.
How much would they are willing to offer for this 0.520MozAu in the Main Zone?
The math: 0.520Moz x $30/oz = $15M, x $60/oz = $30M, etc...
If AEM does not want to do exploration work, then give the job to someone else. Form a 50-50 JV with AZX and give AZX some $10M which should be plenty to do the drilling at Akasaba.
AZX can raise its own money, from ES and others, to fund the drilling at Orenada.
GH