GREY:VITFF - Post by User
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MVargason Jun 27, 2020 7:15pm
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Post# 31199487
RE:RE:Question about BYN
RE:RE:Question about BYNmarshalljj wrote: I'm no expert, but from what I've studied of Banyan, you are correct. They have the kind of deposits that require heap pad leaching to be mined economically. Their grades also seem to be lower than the Eagle deposit which means that it would be even more difficult for them to go it alone. I'd honestly be shocked if Victoria didn't buy them out in the next 12 months. It would add a million ounces to our gold reserves and if we paid about 50 million for Banyan I think it would be a win win for both parties. I'm glad I bought into both companies over the past 18 months.
Currently there is no value to Victoria to adding Banyan's low-grade inferred resources to thier 4.5 million ounces of gold resources. Victoria does not have spare crushing capacity and even if they did, they wouldn't be trucking lower grade ore from Banyan's property to replace higher grade Eagle ore. So Banyan will have to find enough gold to support a standalone operation.
Victoria has the potential to find much higher grade ore much closer to the Eagle mine at the Nugget and Raven targets. Failing that, Eagle is open at depth and those additional ounces could still could be developed at current and higher gold prices to extend mine life.
So I think you should be prepared to be shocked :)