Valuation of gold in the ground
So the discovery by Snowline certainly looks to be larger and higher grade than that of the famous Fort Knox gold deposit in Alaska owned and operated by Kinross. Victoria Gold VGCX owns the Eagle gold mine in the Yukon that recently went into production and those guys had a one billion dollar market cap not that long ago. What Snowline has is most likely several times larger and so far looks to be much higher grade.
Also the Coffee gold deposit in the Yukon owned by Newmont was bought out in 2016 for $520 million and they had a deposit of only 3 million ounces at the time when Goldcorp bought it. So I put a valuation of roughly $125 to $150 an ounce for an undeveloped gold deposit in the Yukon if a gold major were to make a takeover bid and that is on the conservative side in my opinion.
Investor Interest is starting to build in Snowline. SGD will be going a whole lot higher. They definitely have a gold deposit greater than 10 million ounces in my opinion just based on the high grade core of the Valley target so I really think SGD should end up with a market valuation of at least $1.5 billion depending on how good it ends up being. That is 3 to 5 times current valuations. And I could be very conservative with my calculations. Quinton Hennigh thinks it could even be much larger possibly more than 30 million ounces of gold. He makes a good case for it and Crescat recently invested $20 million dollars in Snowline so they have put their money where their mouth is with this one. All of this just based on the Valley discovery. Snowline has 20 other targets yet to be drilled. Absolutely incredible. SGD is still very cheap.