Tudor Gold Corp V.TUD

How to profit from low-grade gold mines.

[TeckPro]

https://www.mining.com/profit-low-grade-gold-mines/

This is a pretty decent article that once again confirms that lower grade mines can be very profitable. Unfortunately we must constantly revisit these same topics to remind ourselves (over and over due to some persistent and hypothetically negative posters) who insist on disseminating massively inaccurate information about Treaty Creek.
 
Important takeaways from this article:
 
There are many more low-grade gold deposits than high-grade. For every 2.5 grams per tonne (g/t) gold deposit, Mother Nature forms another 10 deposits around 1 g/t
 
An example of a low-cost, high-margin Nevada producer is the Marigold Mine. Owned by SSR Mining (TSX:SSRM), Marigold stands out for its ultra low grades of .46 g/t. In production since 1989, Marigold is a large run-of-mine operation. After blasting the ore, it doesn’t need to be crushed or ground and can go directly onto the leach pad which significantly reduces costs. In the third quarter Marigold reported an AISC of $965/oz, after realizing a gold price of $1,207/oz.
 
A good example is Nova Scotia, where a long history of small-scale high-grade underground mines never turned a profit. 
 
The lesson for investors is clear: don’t make the mistake of judging a mine purely by its production numbers and grades. Of greater importance are a healthy cash flow and low cost structure, which allows a company with capital discipline to reap the rewards of a high gold price when times are good, but protect its margins when the price takes a hit.
 
**** End Notes ****
We have a great team at TUD and a unique arrangement with the 3 Amigos. For me this is what guarantees a successful and profitable end game result. 
 
FRC (Fundamental Research Corp) Fair Value
New 25+ Moz Gold Discovery in the Golden Triangle – Initiating Coverage. March 31, 2021.
 
Based on our review of TUD’s assets, management’s exploration strategy, and our valuation models, we are initiating coverage on TUD with a BUY rating, and a fair value estimate of $5.29 per share. We expect gold prices to strengthen in H2-2021, as inflation kicks in from a global economic recovery. We believe stronger gold prices, and results of the proposed resource expansion drill programs, to be TUD’s key catalysts this year.
 
*** P.S. The Fair Value Estimate of $5.29 per share was before the additional drill results on August 03, 2021, August 30, 2021, and Sept. 28th, 2021 which are significantly increasing both the enormous size and grades of Goldstorm  ***

Can't wait for more drill results!

Patience is key -:)
 
DYODD
 
GLTA Longs
 
T.P.