Laurion Mineral Exploration Inc V.LME

Equinox Gold Consolidates Ownership of the Greenstone Mine

[ahsineeg]

EQX bought out the 40% interest of their partner, Orion Mine Finance, for $995 million USD ($1.36 billion CAD).  This values the mine (5.5 million oz of gold)  at $2.48 billion USD ($3.4 Billion CAD).  

Now we know why Gold Road walked away from talks.    

PR Here

This is excellent news for LME as our Ishkoday property (of merit) is about 40 km away and would have a similar low operating / mining cost as the Greenstone Mine.  Lots of eyes will be on what other projects are up and coming in the region.

[GoldenBull999]

only 5 more years of drilling to go 

[Primpage]

Ahsineeg, would they consider the cost of the plant separate from this figure? The plant itself cost 1.23 billion which doesn't seem like a great number for 5.5mill geo's. Trying to understand. 

[ahsineeg]

Primpage - sorry for the slower response, needed some time to confirm the numbers to properly answer your question.   Below is the math for Orion's Invesment in the Goldstone Mine (which is 40 km from LME's Ishkoday) -Jan 2021: Orion purchased 50% interest in Greenstone from Canterra for $300 million USD -April 2021: Orion sold 10% interst in mine to Equinox (leaving them with 40%)

[Primpage]

Thanks for your time and efforts to reply in such detail. I've done some numbers on my end as well and it does seem to be a decent valuation for the geo's in the ground. Plus the value of the geo's with this equinox transaction, would have been at a considerably lower price 2-10 years ago to compare to where Laurion is now as we know that the value is derived from the future price of

[JoJoHairBlo]

$450 USD/ GEO. !!! I realize that's an over-simplification to calculate the valu that way, just sayin' people have been talking about Laurion being at $300-$350 USD / oz

[TraderRC]

Good day all. Yes $450 usd/ Oz. But this includes the construction  costs. If we go on the premise of 10m,, that's $125 /Oz to build, leaving us at $325 usd per Oz.. in line with numbers being posted. If we have more than 10m in the ground, the bo price per Oz should increase. Over simplified way to look at it, but to me the numbers look great.  Now we just need the PR to confirm