LN Provides corporate update Loncor Gold Inc./TSX: LN: Provides corporate update
Analyst Opinion: LN has attracted a mining/services company to mine alluvial gold resources from LN’s Adumbi project in the DRC. In return, LN was paid US$1.25M (upfront), and will receive 25% of revenue from future production.
We note that alluvial accounts for a very small portion of Adumbi’s resource potential. LN is focused on advancing its primary gold deposit on the project to production. A 2021 Preliminary Economic Assessment on this deposit had returned an AT-NPV5% of $600M, using $1,600/oz gold.
LN is trading at <10% of AT-NPV. Adumbi has potential to produce over 300 Koz ever year.
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