Post by
RONNIE111 on Dec 06, 2019 1:21am
Mining News Kinross unloads Lundin Gold stake for C$150 mill
Kinross sold their last 9.2% of Lundin Gold for C $150 mill. Lundin Gold's only project is Fruta del Norte, and they say it will produce 310,000 oz Au per annum. 9.2% of that is 28,520 oz. So Lundin and Kinross both believe production of 28,520 oz per yr. in Ecuador , at a very low AISC (they hope) , and a long mine life, is worth C $150 mill. , cash.
So comparing that to Core Gold: The Portovelo Mill can be cheaply and quickly expanded to 2,000tpd, and if all the material came from Dynasty Gold Fields (DGF) at 3.5g/t, that's about 70,000 oz/yr. By the above , Lundin/Kinross metrics, that would be worth C $368 million. Now the AISC wouldn't be as low as Lundin advertises , so that is a bit high , unless: gold goes to US $ 1900 ; or Core starts to take material from Zaruma again which would be very low cost; or a new mill is built at DGF, at a cost of perhaps C $60 m which would have a low AISC.
And someone could get to that 70,000 oz by spending as little as C $20 m: C $10 m for debt, and C $10 m to expand the mill, develop more ore at DGF, and buy trucks. Core would then be making around US $ 50 m per year after mine/mill costs (depending on gold price)
And according to the Core Presentation, DGF has:
1m oz au at 4.65 g/t NI 43 101
and 1.1 m oz at 4.42 g/t inferred (with lots of exploration upside)
I could go on and on about Copper Duke etc.
My point is that Core Gold is worth a lot.
And yes Titan did almost manage to steal it all. And yes that was because the Core BOD4 /CFO (Core Boys) were totally a part of the steal, right from the very start. And the way they hoped to do it was by the usual Titan tactics: lies, lies and more lies. And I think that the Core Boys were very surprised that we didn't believe all the lies. But now it is just assumed that anything Titan says is a lie, and their one and only play is to steal. And once the element of surprise is gone, and all credibility is completely lost, stealing companies is hard.
It is hard to be patient at this time, not hearing anything. Mr. Piggott is very much a part of what's going on but he can't say a word, Core BOD can only come out with an official announcement and it will need to have all the i's and t's . The CFO still occcasionally seems to get a shiny new name and posts something here , but I don't think anyone takes anything he might say with much seriousness. If he once had some credibility he certainly no longer does , as far as Core goes.
I think it is very good that we are being diligent, watching Titan's strange manueverings, continuing to press the Canadian regulators (the Aussie ones look uninterested) ; but also remembering that nothing to this point has indicated that a fair apprasial of the offers that have come in isn't being done. I can't see how that couldn't be happening, and can see very vividly what would happen if it wasn't.
And for comic relief, to help pass the boredom of all this waiting we have clowns like joda to entertain.