Back in July we dedicated more than one IKN space
to Andean Resources (AND.to) (AND.ax) and its excellent round of drill results (here’s an example
, with links to coverage reports) so yesterday’s unsolicited bid by Eldorado (EGO) swiftly followed by friendly bid from Goldcorp
catches this humble scribe’s eye.
The bit that really grabs the attention, however, is the price being paid. Now for sure there’s a whole lot of underexplored ground on the AND.to plot down there in Argentina (there’s 215 km sq in total), but if we go on just the current outlined resources so far, it’s still a hefty price tag being paid. What we have is:
- 2.54m oz gold indicated
- 523,000m oz gold inferred
- 23.56m oz silver indicated
- 3.12m oz silver inferred.
If we use a 65:1 ratio for the Ag/Au that brings us to a total of 3.996m oz Gold Eq (the lion’s share pure gold). And yes, it’s high grade, and yes it’s near surface and yes there may be a lot left to add to that resource count yet, but still, we are talking about
EIGHT HUNDRED AND FIFTY-SIX US DOLLARS PER OUNCE
And that’s a price tag to make you sit back and think about things. Things like, “That’d still be a hefty price tag if the gold count doubles
” or things like “Wow, Ventana Gold (VEN.to) is dirt cheap here
Disclosure: No position AND.to, long VEN.to.