Augusta Gold (TSX: G)'s Reward Gold Project After-Tax Net Present Value (NPV) becomes US$163.5 million at $2,600 per oz gold and there is no permitting risk since they are already fully permitted to construct the mine.
Reward gold recoveries are very high at 81% but the Feasibility Study is conservative estimating only 79% recoveries. The initial capex of USD$89.7 million is very low. AngloGold Ashanti (AU) plans to spend initial capex of USD$369 million to construct their adjacent North Bullfrog Project after receiving permitting.
Augusta Gold points out that AngloGold Ashanti does not anticipate receiving the necessary permits for the North Bullfrog Project this year but Augusta Gold's Reward Gold Project has permitting and can be constructed within 12 months. Reward is positioned to become the first modern day producing gold project in the Beatty Gold District and it will reduce the future operating costs and capex of Augusta Gold's Bullfrog Gold Project, which has triple the gold resources. Augusta Gold will be considering asset sales of both of its gold projects if the price is high enough to unlock significant value.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
