RE:Compare Musgave Minerals With Murchison The reason I research such comparative proxy valuations is to arrive at a fair value for our Murchison assets, as they now exist.
Musgrave have some two high grade deposits and good intercepts below 100 m.
It is more advanced in its exploration program than Monument, so we would not be accorded the $200 per ounce of gold in the ground which Musgave is being given.
So, I use 50% of Musgrave market cap per ounce to arrive at $55 million for Mounuments 550,000 ounces .
But Monument has in addition a fully equipped 300,000 tpa mill and most of the equipment for heap leaching .
I value this at $10 million .
And we have the $5 million investment in Odessey Gold.
Combined, we have a reasonable takeout value for our Murchison assets of about $70 million.
That is, as is and where is.
Our cost base is about $45 million.
If you wish, you can use a +/- range of 20% which would set the range of likely value as $55 million to $80 million.
Competiton remains robust for advanced gold deposits in Western Australia ,that can be quickly put into production.