Food for thought Part 2:DECEMBER 1, 2024
"...Acquiring De Grey will provide Northern Star access to a low-cost, long-life and large-scale gold development project — the Hemi gold deposit. The high value of the discovery is driven by its size, grade continuity and growth potential. Hemi has a mineral estimate of 10.5Moz and the potential to be mined by large scale, low strip ratio, low cost open pit mining.
De Grey is developing the Hemi deposit in the Pilbara region of Western Australia, which has a mineral resource estimate of 264 million tonnes at 1.3 g/t gold for 11.2 million ounces.
(….sounds like LME?)
Hemi is forecast to produce 530,000 ounces of gold per annum over its first 10 years of operation.
Construction at Hemi started in mid-2024 and the first gold production is expected in mid-2026. A final investment decision is subject to the finalisation of project approvals and project debt financing
In Austraila but project is not remote….much like LME on the other side of the planet.
The Project is located within 60 minute drive from the ports and regional centres of Port Hedland and Karratha. The region is rich with critical infrastructure to support a future mining operation including two major sealed highways that run within 20km of the Hemi discovery, a gas pipeline located 5km and 20km from Hemi, and a major 220kV electricity transmission line which also lies within 20km of Hemi. The project is also in the same region as the Asian Renewable Energy Hub currently being developed by a consortium led by BP
Just last week it Sold for $3.3B USD or $4.7B CAD
($3.3 B / 11.2m oz is $294/oz or $415/oz CAD paid per gold oz in ground, up from $300/oz in GBR deal )
LME MRE : 2.5 Indicated and 12.5 inferred?
- greater than De Greys?
- and LME still needs to add drill results from 2023 and 2024 to add to their mineral reserves.
So can we now deduce that based on the most recent comparable tier one deposit gold deal that ...
LME may currenty have a bare minimum valuation of $3.3B/$4.7B CAD (and GREATER)?
HOw about them apples??!