Steemit Stock Watch: Could this nearly unknown stock be a home run?
The mine that was basically stolen from Barrick Gold
Back in 2007 Barrick Gold (The world's leading gold miner) bought the Kainantu mine project in Papua New Guinea for $141.5 million dollars. The previous owner had spent $80 million so far. They then spent about $100 million dollars and 6 years on putting up buildings and other infrastructure and $41.3 million on exploration drilling and mine expansion.
Barrick didn't get much gold out of the ground, they only mined the site for 6 months before they shut it down to focus on the exploration and expansion of it. So from 2008 to 2014 it sat mainly unused as the above mentioned projects were taking place. In 2014, Barrick needed to raise capital and decided to sell off their non core assets. Kainantu mine was sold to K92 Mining for just $2 million and possible future payments of up to $60 million if certain production levels are reached - namely 3 million gold-equivalent ounces mined or found in the next 9 years. This is broken down into $20 million dollar payments per million ounces discovered or mined. The terms were very favorable for K92 Mining.
Here are some highlights directly from their website.
- NI 43-101 Compliant Resource of 1.84Moz @ 11.6 g/t AuEq Inferred and 240,000 oz @ 13.3 g/t AuEq Indicated
- Existing infrastructure including underground mine development, mill processing facility, staff housing, licensed tailings pond, office space, paved access roads and reliable hydro supply via a dedicated power line
- USD $41.3 million invested in exploration drilling and definition drilling with the current resource estimate based on 78,935m of drilling via 767 drill holes
- Funded through mine re-start at Irumafimpa Deposit
- Significant opportunity to expand known zones of mineralization; as well as for the discovery of new ore bodies
I am long KNTNF. Please do your own due diligence before purchasing.
OTC: KNTNF TSX-V: KNT
Might be a sweet find. Nice clear writeup. Thanks!
A couple of things that might help make this article stand out.
Charts? It's always nice to see long-term and short-term price movements.
Tags - Use all five, if appropriate. You could have included at least #financialservices, plus I would have included #gold, #investing and maybe #mining.
Much appreciated. I definitely should have used more tags too. Live and learn I guess, thanks for helping me out.
We're all learning this thing together. Even with those things, my articles aren't getting much love. The folks who read them, seem to dig them. But I am not getting recognized.
If you're not a chart guy, there are sites you can go to in order to grab one. You just find what you're looking for and usually they'll provide a download link. The visual is super helpful for any stock investment posts... maybe even almost mandatory. :)