Augusta Gold (TSX: G)'s biggest breakout in history is about to take place in the days ahead!
G only has 79.2 million shares outstanding and a market cap of US$99.3 million.
Between G's Bullfrog and Reward Gold Projects in the Beatty District of Nevada, G has a total gold resource of 1.92 million oz, which means G is being valued at only US$51.72 per oz of gold resources.
G's Bullfrog Project contains three past producing open pit gold mines (Bullfrog, Montgomery/Shoshone, and Bonanza Mountain). They were previously owned/operated by the world's #1 highest market cap gold miner Barrick Gold. In the 1990s, Barrick produced 2,000,000 oz of gold from Bullfrog plus an additional 220,000 oz of gold from Montgomery/Shoshone, and 72,000 oz of gold from Bonanza Mountain. Barrick is one of G's largest shareholders.
Earlier this year, the world's #4 highest market cap gold miner AngloGold Ashanti paid US$370 million to acquire 80.5% of Corvus Gold valuing the full company at US$459.63 million. The flagship asset of Corvus Gold was their North Bullfrog Project, which is directly adjacent to G's Bullfrog Project!
Unlike AngloGold Ashanti's North Bullfrog which will require the construction of a mill, G's Bullfrog Project is 94% oxide ore which means it can be processed entirely by low-cost heap leaching. G's Bullfrog Project already has a 25kV power line and sub-station on-site and a paved highway crosses the property boundary. Access roads and in-pit haulage ramps are already in place!
Last week, AngloGold Ashanti closed on the acquisition of the Crown/Sterling Gold Project for US$150 million in upfront cash plus a possible future cash payment of US$50 million, which would equal a total acquisition cost of US$200 million. AU's newly acquired Crown/Sterling Gold Project is directly adjacent to G's Reward Gold Project!
G's Reward Gold Project is fully permitted for production and the permitting process to bring G's Bullfrog Gold Project back into production is well underway!
The engineering/pre-feasibility studies for both of G's gold projects are almost complete and will be released before year-end!
We expect them to show very low initial CAPEX and very low production costs, which will result in G being revalued to somewhere between $200-$300 per oz. This means G should finish 2022 with a market cap of somewhere between US$384-$576 million.
This will result in G finishing 2022 trading for between $6.54-$9.80 per share.
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. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 174,200 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.