Probe Gold Inc T.PRB

M&A. Deal Just Announced

[Goodluck395]

Northern Star is acquiring De Grey Mining ( a exploration company)located in

Australia for A$5 billion (US$3.25 b) which includes 

cash of US538m ( as of September 30th 2024).

This deal is a very good benchmark for Probe Gold .

The Hemi project resource estimate is 11.174m oz Au

Which contains a inferred resource of 4.326 m oz and M&I of 6.848m oz.


Grades are 1.3g/t Au
with an annual production of 530 000 oz over 10 years and  a LOM of 12 years.

in addition there is a resource estimate for "regional " 
of 2.409m oz AU at 1.5g/t.

IMO
Based on this deal that's hot off the press,
Probe has a huge stock  price upside!

[mtzorfas]

Make sure you tell Dave and Seema about this one!  This is a great benchmark.  PRB is worth $7-10/share with the price of gold over 2500.  Not saying we will get it, but this deal shows that it's not crazy to think we should get it.  

[biotechguy1]

Would be nice!  They do have some shallow higher grades ...but roughly and equivalent project. It is a challenge to get a mine permitted in Canada versus Austrailia ! A lot of companies can find projects with less headaches in safe jurisdictions. Still 5 bucks a share is not unreasonable.   GLTA 

[Goodluck395]

I don't think that the grade is the problem. At current gold prices the margins are  on a historical basis large. The NR that IAM gold released this morning  saying they purchased  9.7% of Cote Gold from Sumitomo  for  US$ 377 m which includes an option fee for US$23.7m If you exclude this option fee the nett is US$353.30m fot the 9.70% . So on 100% basis that

[biotechguy1]

I completely agree but PRB is not a producer so max 4-6% of in-situ value ... once you produce you can buy forward any debt you wish to incur. PRB is my last risk play ... but i look forward to at least 3-4 bucks a share ! I am sitting in Costa Rica watching the Sunset !  Could take a year or so ! Maybe 2 !  GLTA