NST believe the new Zodiac discovery at Jundee is an absolute...

NST believe the new Zodiac discovery at Jundee is an absolute monster and they have been very quiet with drill results since announcing the find. Very possible there's significant mill constraints on the near horizon at Jundee, a big problem. What options do NST have? Update the current mill, build a new one or find one close by and purchase it.

A new 2Mtpa plant would cost $120-150m. Assuming NST acquire EAR for 50c (~$250m), then they're getting a 2Mtpa processing facility, a large prospective land package and new resources/reserves immediately. Taking the cost of the mill out of the purchase price leaves $130m for everything else - $76 per resource ounce and $151 an ounce for reserves - very acceptable!

My numbers are rough (big one last night ;-), however, it highlights that NST are getting a bargain. We all know they will pump exploration in expectation that there are high grade UG resources below the current pits. With an exploration A-team team I'm confident they'll have Bronzewing running for the next 10yrs spitting out serious $$.

Don't know how much it will cost to truck 5-6gpt material to Bronzewing from Jundee ($50-75 per ounce???), although, I'm 100% positive NST have already run those numbers and know that buying EAR right now has serious value for shareholders in the near future.