If a company has a high quality past producing gold project in the world's #1 ranked mining jurisdiction Nevada with a near-surface resource of above 1 g/t gold that is suitable for low-cost open pit heap leaching with a management team that has the ability to bring it into production, the project should be worth approximately 20% of the current in-situ gold value. If all North Peak Resources (TSXV: NPR) does is verify the 350,000 oz gold resource that was discovered in 1998, with gold at $1,841.60 per oz, the Black Horse Property's in-situ value is US$644.56 million giving NPR a fair value of US$128.912 million or CAD$161 million, which will equal a price for NPR of $7.55 per share.
However, the initial 1998 gold resource was only including drill holes from Area A and not the lesser explored Area B where some of the highest-grade intercepts were discovered. In addition, it was only including the oxide ore of Area A located closest to the surface.
If in addition to verifying the Area A oxide ore, NPR discovers a similar sized oxide gold resource at Area B, NPR will deserve a valuation of $15.10 per share.
If NPR successfully discovers similar grades of gold at greater depths below the oxide ore, they could potentially quadruple the 1998 gold resource, which would value NPR at $30.20 per share.
NPR is about to launch their gold drilling programs! NPR's management team successfully raised over $3.5 billion for their previous mining companies!
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 200,000 shares of NPR in the open market. This message is meant for informational and educational purposes only and does not provide investment advice.