Moneta Gold Inc Com MPUCF

RE:RE:RE:RE:RE out in Q1 2019

[tomgranite]

I’m not making any predictions or forecasts as to what we might get bought out at, but here are some numbers and comments.

PEA 2012 pog C$1,350, price is now US$1,220 X 1.30 = C$1,586 i.e. 17.5% increase. Price of fuel lower now, plays a part in open pit operation. The NPV from the 2012 PEA is $798mil. In the PEA the processing plant made up $297mil of the overall $607mil, so a nearby major with a mill in place could halve the required initial capex. If this was the case and given the increase in pog (Canadian $) since 2012  I would estimate that a PEA after the updated RE would have a NPV of around $1.2bil.

The figures I have seen used for valuation purposes are $100/oz for indicated, $20/oz for inferred. So assuming the new RE has 1.2mil ozs indicated and 3.8mil ozs inferred it gives a valuation of around $200mil which results in a SP of around 75c.

I’ve gone through the NRs since the PEA was done in 2012:

2017/18, 74 holes found new shoots and expanded known shoots.

2016/2017, 36 holes concentrated on expansion drilling, some success.

2013/14, 112 holes. 2013 was infill drilling but here is a quote from 28^th Feb 2014 NR: ‘’Drill hole MGH13-077 was designed to test a 400 metre drilling gap between the volcanic hosted Windjammer North and the Landing zones. The significance of this 114.5 metre drill intercept is its 100 metre proximity to the existing conceptual pit shell.’’  The intercept was 2.02g/t over 114.5m and it started 130m below surface.