LK and YM, the issue i have with the AUL & Cabe deals is the...

LK and YM, the issue i have with the AUL & Cabe deals is the damage to GPN. Using comparatively conservative prices and then reducing them even further again by quoting in AUD instead of US prices, this is what GPN is losing a large proportion of, for unexplored ground. Remember that the following deposits are jorc resources and figures are for in-situ value.

Gabinintha deposit as it now stands:

92.5mt @ .081% V2O5 = 750kt @ $10p/kg = $7.5b
@ 9.81% TiO2 = 9mt @ $2p/kg = $18b
@ 51.2% Fe203 = 47mt @ $50p/t = $2.3b
Total value = $27.8b

Nowthanna U308 - 3289t @ $160p/kg = $526m


Total in-situ value of jorc deposits = $28.3b aprox.

5 months ago GPN had 70% of this or around $20b.
After Cabe and previous deals GPN will hold 21% of YRR so will have more like $6b.

Now as GPN will hold 21% of YRR, they are getting around $14m of the $69m worth of unexplored land from the YRR deals for giving up maybe $14b of in-situ value.

If we were to say that even 1% of in-ground value should be reflected in GPN's share price, then that equates to $140m or 7c per share fully diluted.
So how much are these deals really costing GPN?

Whilst this example may be far from accurate, i use it only to try to highlight just what effect these free YRR shares being handed out for unexplored ground is doing to GPN.

It is far too simplistic to just say as long as the new tenements being acquired by YRR can be proven to be worth the $69m value put on them, then holders are in front. That's far from the truth when the dilutory effect on GPN's holding in YRR is taken into account.

It's costing GPN far more than that.