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The Cliff - Novagold's Galore Creek

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November 27, 2007 – Comments (1) | RELATED TICKERS: NG

Have a look at NovaGold... It fell off a cliff yesterday.

Teck Cominco backed out of funding this copper, gold and silver mine construction. A lot of money has already been spent here, and it was just halted.  It is called reassessing the market, cut your loss and run.

The measured resource grade is 0.59% copper, 5.64 g/ton silver and 0.33 g/t gold.  At current prices this works out to about $50/ton metal values. 

The metal grade on NovGold's resource is better than the metal grade for Augusta Resource, AZC, about 16% better.

I did a post on AZC ago because some one asked me why I underperformed it and I gave my reasons.  Not getting funding for their project wasn't on the list, but it certainly looks like that idea could be added to the list...

 


 

1 Comments – Post Your Own

#1) On November 27, 2007 at 1:44 AM, dwot (42.85) wrote:

This is just someone's comment I picked up somewhere.  It doesn't matter where, but it is common....

The value of the metal at todays prices is some 58.4B, Nova’s share 29.2B. Even discounted 10% this would be $24 per FD share. The 10% of 50% of Donlan is $5.70 per FD share.

Sure the Cdn $ dollar has risen since the Feasability's 81 cents, an increase of 24%.

But the value of the metals used have increased more, AU (525) now 800+ up 52%, AG (8) now 14+ up 40% and CU (1.50) now 3+ up 50%.

Now read my post, The Abundance of Minerals....


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