Sunday, 8 February 2015

Premier Gold JV with Centerra Gold

Breaking the usual pattern of junior buyouts here we see Premier Gold, a significant junior with multiple projects, entering a 50:50 Joint Venture where Premier's contribution is the Trans-Canada Gold property and Centerra fund $300m of development. PEA was completed Jan-14 and Feasibility is underway. PEA indicated 19% IRR @ $1250 Gold, with Capex at $410m including an $83m contingency.
With falls in the $CAD vs $US and depressed general commodity markets mine-building costs in Canada should be favourable.

The Trans-Canada property is in Ontario's Geraldton Beardmore camp which saw a great deal of speculative investment after Kodiak Gold made spectacular drillholes in 2007 and raised substantial funds but never pulled together a successful deposit. Goldstream Minerals now hold the properties they call Hardrock East, with Kodiak's Brian Maher involved.
Kodiak merged with Golden Goose to form Prodigy Gold and developed the Magino deposit bought out by Argonaut, but needing higher gold prices for development.
Meanwhile Roxmark and Ontex developed old mines, Brookbank and Bankfield amongst others in the region and merged to form Goldstone Resources subsequently bought out by Premier Gold. 

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