AngloGold Ashanti (AU) is going to spend initial capex of US$369 million to bring its North Bullfrog Gold Project into production after it receives permitting. With total proven & probable reserves of 1 million oz of gold it equals initial capex of US$369 per oz of gold.
Augusta Gold (TSX: G)'s fully permitted Reward Gold Project has initial capex of US$89.7 million with total proven & probable reserves of 370,000 oz of gold. This equals initial capex of only US$242.43 per oz of gold. The Reward Gold Project has stronger economics with initial capex that is 34.3% less per oz of gold to be produced.
AU's North Bullfrog Gold Project will see its economics improve after AU gains ownership of Augusta Gold (TSX: G) and its past producing Bullfrog Gold Project. AU will be able to mine ore from Bullfrog and truck it directly to North Bullfrog for processing.
Between the high-grade high-recovery 100% oxide Reward Gold Project and a combined Bullfrog+North Bullfrog Gold Project, AU will begin producing significant ounces of gold in the short-term helping fund the development of their larger adjacent Silicon+Merlin Gold Deposits.
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.
Preparing Americans for Hyperinflation
