How Valuable Is Gold In The Ground Many examples for Juniors.
Lets take Big Ridge ( Brau ..8,5 cents )
It has drill defined 1.6 million ounces at 2 grams per ton plus 47 million lbs of copper.
The gross revenue potential is over $6 billion cad
Its market cap is $20.5 million .
The reason is that its deposit has yet to endure the time and cost to build a mine with all of the required
infrastructure .
This is not an unusual example of NL juniors .
Another example is Signal Gold and its 2 million + ounce Goldboro discovery.
Signal recentky had a negative WC and technically bankrupt before merging at just mere pennies.
Once again, the absence of a mill and infrastructure killed the project.
These are not necessarily extreme examples of stranded gold discoveries.
They do make clear the tight spot that NFG is in as it struggles to get decent market credit for its
QWN drill results .
Its my view that Maritime will acquire Big Ridge 2 million gold equivalent ounces of economic gold
for very modest costs...beggars can't be choosers.
With its two gold mills, those $6 billion worth iof gold ounces in the ground will be converted to real revenues and real free cash flows.
Shareholders of both companies will benefit in substantial ways.
Firefly has 2.8 million ounces of gold at over 7 grams per ton in its Red Lake Pickle Crow deposit.
Its been for sale for several months but no takers yet.
Once again the follow on costs of mine development has stalled what should be an attractive high grade deposit .
This is why NFG needs to be transformed and quickly into a producer .
Drill results no longer do the trick .
It must examine its production options
AIMHO
GLTA