"After my DD, I think (i.e. debatable), that Goldboro brings more on the table than Goliath. Here is what's behind my reasoning.
- Goldboro shows currently more resources (3.124Moz at $1600 gold) than Goliath (2.95Moz at 1700$ gold). Goliath has however 1.46Moz in the reserve category vs 1.15Moz for Goldboro. However, there are a lot of drilling done at Goldboro that have not been included in Goldboro's resource estimate. Also, NexGold has used a higher gold price for their PFS study.
- Resource is higer grade for Goldboro
- Goldboro pitable resources (1.5 to 2.0 kms) are much more closer than for Goliath Complex (over 35 kms).
- Goldboro is free of royalty. There are several royalties set on Goliath complex (2.2% NSR to Sprott Resources for the entire life of the project;Other royalties from 1% to 2.5% on some parcels; Total of about $100k yearly payments to some land owners). This gives a lot more leverage for Goldboro to finance the development of the mine.
- It seems that Goldboro is closer to production than Goliath.
- I'm not considering the initial capex for developing the mines as even if Goldboro has the lowest one ($271M vs $331M), this amount is outdated.
- Right now, the AISC is almost US$200 cheaper for Goldboro (US$849/oz vs US$1037/oz). Perhaps costs will go higher for Goldboro as the FS is 1 year older than Goliath's one, but I would be surprised if they pass the US$1000 mark.
So all in all, I think we could put the following CONS and PROS when conparing the properties:
NexGold
CONS:
- Royalties are present on the properties
Signal Gold
PROS:
- Slightly better resource package (more resources and simpler open pits)
- More leverage in financing the mine as Goldboro is royalty free
Comments anybody?"
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I think this discussion is futile.
But..
You state Goldboro brings more to the table than Goliath. I agree with you.
When you are comparing ounces... I feel at this time the only relevant ounces are the open pit. There has never been a study suggesting the undergroud resources at Goldboro make sense financially. Goliath has not had a FS.
The Goliath complex... over 35 km vs Goldboro at 1.5 to 2.0 km. (goldboro, I figure you must be still assuming a 3rd pit. Which I don't think the results have showed.. I think Kevin stated in Sept that there is a possiblilty for a 3rd pit. But you changed the wording to is there is likely a 3rd pit)
The 35 km you mention. I think that is the total from end to end between the Goliath and Goldlund deposit. That area has hardly been explored, and they have a drilling project planned for that land in the middle. Plans could change after the merger. We will see.
My point is that you mention the 35 km Goliath complex. It makes it sound like the reserves/resources are spread over 35 km. Part of the Goliath complex is the Goliath deposit. Which is no where near 35 km. And the resource/reserve estimates come from the Goliath deposit.
You state it seems that the Goldboro project is much closer to production than the Goliath project. Can you prove that? They are both awaiting permits. And it sounds like Goliath is very close to a deal with the natives. That is usually one of the slowest processes in building a mine. While with Goldboro we have no idea. Getting approvals from the federal government that Goldboro needs can be very time intensive, and never a guarantee.
The numbers you post comparing AISC mean nothing right now. The AISC does not include all expenses. It is not All in Costs. It does not include taxes, depreciation, exploration, depletion, and financing. AISC are not accepted by GAAP.
A deal with the Mi'kmak is not factored in. Believe me, they will want something.
Talking about royalties. Companies often when purchasing property mineral rights that they believe has potential.
In the long run, yes they could be expensive.
But you have to remember this. If gold is $2700 US an ounce. And they have a 1% royalty. They have to pay $27. So they are still getting $2673 US. It's not that bad.
I can't believe and think that it must have been an error in the releases.
You forgot to mention that apparently Nabairi will get a 6% net smelter royalty on the Goldboro project according to the news releases. Did you forget that?
Anything else you want to talk about?