NIA has obtained a copy of a 2012 preliminary economic assessment (PEA) report for the fully permitted Reward Gold Project in Nevada that Augusta Gold (TSX: G) is currently acquiring at a total cost of US$45 million.
G is practically stealing the Reward Gold Project from the world's third largest private equity mining fund Waterton, which has received redemption requests from investors and is being forced to unload assets for pennies on the dollar.
According to the 2012 PEA report:
The initial CAPEX to develop the Reward Gold Project and bring it into production is estimated to be US$34.5 million and construction will take only nine months.
At $1,600 per oz gold the after-tax Net Present Value (NPV) of the Reward Gold Project using a 5% discount rate is US$116 million.
The Reward Gold Project NPV increases by US$15.8 million for every $100 per oz increase in the price of gold.
This means that at $1,900 per oz gold, the NPV of the Reward Gold Project is an estimated US$163.4 million or 4.74X higher than initial CAPEX.
Compared to a decade ago, we expect initial CAPEX to be slightly higher today... but the Reward Gold Project will remain one of Nevada's most fundamentally strong gold projects. This acquisition is going to add tremendously to G's shareholder 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. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 159,200 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.