Like many deposits the history is long. NUS was spun out of Asia Resources (unlisted) last August. Backed by Lion selection (30%+ shareholder), who also back EGA. NUS raised $16mill @42c.
Vista Gold owned it before One Asia, TSX, US-listed gold company who own the Mt Todd deposit in NT. (Australia largest undeveloped gold deposit?)
Regarding a local partner, NUS own the CoW 100% and do not need to divest the project until 2030. A local partner would be at managements discretion, not mandatory until 2030. The idea being that the mine is built by late 2020 and they get a good 9 years at 100k oz + production before divestment.
Capex estimated around US$150-170mill. 2.5Mt plant, 1.4g/t average LOM grade, 90%+ recovery, 3.5:1 strip ratio. Cheap grid power. AISC around US$700 oz. More accurate numbers in upcoming DFS, due in July.
Plenty of exploration upside as well, with an updated MRE due later this month. The new geological model seems to have been validated, with good potential to expand the resource further to the east.
It's cheap as chips for what looks like a quality deposit at DFS stage. The project is robust, the question is will they be able to finance it? Some pretty sound people on the board. Mike Spreadborough is the MD, he is also a non-exec board member over at CLQ (MC $720mill). Greg Foulis also just on board as Chairman, he would have seen it all over at Kingsgate, plenty of experience of dealing with foreign governments.
Colin McMillian also of the highest quality on the geology side of things. So all in all, a very impressive team.
Worth putting on the watch list for sure at about $10 EV/Resource at the moment, although if the SP stays at 27c, that number will likely go lower with the next MRE update. A high percentage of indicated as well (85%).
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