Many people don't believe us that the Merlin Gold Deposit that AngloGold Ashanti (AU) discovered last month in the Beatty Gold District of Nevada is the largest new gold deposit discovered by any company in North America during the past decade. Some NIA members are telling us that if this Merlin Gold Deposit is such a big and important discovery... why is AU stock down since its discovery?!
AU as one of the world's largest gold producers gets valued based on its production, revenue, earnings, and cash flow. A new gold discovery, even North America's largest new gold discovery in over a decade... isn't a game-changer for AU because it has other mines elsewhere in the world that are being rapidly depleted. AU must develop their Beatty Gold District properties to have any chance of maintaining their current levels of gold production for many years into the future. If prior to the Merlin discovery there was a 95% chance of AU developing the Beatty Gold District, after the Merlin discovery there is now a 100% chance of AU developing the Beatty Gold District.
The discovery of Merlin is much more important for Augusta Gold (TSX: G) than it is for AU, because G is the only publicly traded Beatty District pure play.
The discovery of Merlin is also very important for Orogen Royalties (TSXV: OGN) because they own a 1% NSR royalty covering AU's Silicon and Merlin properties in the Beatty Gold District.
If you don't believe that the Merlin gold discovery is the #1 most important North American gold discovery of the past decade, take a look at OGN stock...
OGN is the only gold stock in the world that finished Friday at a new 52-week closing high!
OGN's market cap at $0.70 per share is now up to CAD$135 million and it's all because of the Beatty Gold District! OGN's 1% NSR royalty covering AU's Silicon + Merlin properties in the Beatty Gold District is their flagship asset.
At some point within the next 12 months, it would not surprise us if OGN gains another 42.86% to $1 per share and reaches a CAD$193 million market cap, but Augusta Gold (TSX: G) has much more upside than OGN!
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 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.