Royalty Holder………………New Gold
Revenue……………..…..………………..n.a.
Mine Life...…………………14 years plus
Commodity…………………………….Gold
Operator………………………….Goldcorp

#1 El Morro

Last week, Goldcorp bought New Gold out of the El Morro copper-gold project in Chile for $90m in cash, but New Gold retains a 4 per cent stream over any future gold produced.

“El Morro is one of the highest-grade undeveloped copper-gold porphyry systems in the world,” according to Goldcorp's CEO Chuck Jeannes. Boasting a vast gold reserve of 8.9m ounces, plus ample exploration upside, the new stream may be tempting for a major gold royalty group.

A 12 to 18 month pre-feasibility study however is not due to begin until 2016, indicating a massive lead time for a supertanker of a project. Analysts have modelled production beginning in 10 years time, leading to wide-ranging valuations for the new stream of $36m to $75m.

New Gold is meanwhile looking for capital to cover a $900m capex bill at its Rainy River project in Ontario.

 

 

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