Argonaut Take out mention, page-3

GMD starts looking undervalued at this gold price IMO and a potential TO target for SBM.

SS says $14.8 million in mining and UG capital costs. Not much in the scheme of things for SBM to add 400,000ozs of potentially high grade +4g/t  mineable reserves to their current operations with potential for resource/reserve expansion and exploration potential.

400koz at a margin of $700/oz = OCF $280 million. At a margin of $800/oz = OCF $320 million

Current EV at 3.6 cents = $32.2 million

SBM offer GMD shareholders 6 cents per share (~70% premium to current share price) = $65.3 million and spend $15 million on mining capital costs for a total of $80.3 million to acquire $280 million minimum in operating cash flows over 4 years plus resource/reserve expansion potential and exploration potential.

Company still has a long way to go as a stand alone proposition IMO but as a TO target it is staring to look attractive IMO.

@CashedUpBogun

Hi CUB,

Have you got any opinions on this project, cut-off grades, rib pillars,  mining method, mining recovery etc

Eshmun