Near-Term Gold Production in Finland’s Lagoda Region
Nordic Gold Corp. (TSXV:NOR) is a junior precious metals mining and exploration company dedicated to enhancing shareholder value by identifying and securing early-stage precious metals exploration opportunities.
Nordic Gold currently has holdings in two properties, including 100 percent of its flagship Laiva gold project in Finland and 49 percent of the Star property in Northwestern British Columbia.
The Laiva mine is fully permitted and funded for production. The company expects to start mining in August 2018 and will pour gold in October 2018. The bulk of the financing—also used for the acquisition of Nordic Mines AB, the past owners of the Lavai mine—was obtained through a prepaid forward gold purchase agreement with Pandion Mine Finance for $20.6 million. With the Laiva project in a state of near-term production, the company expects to become an 80,000-ounce-per-year producer within the second year of production. To this end, the company released a prefeasibility study on June 4, 2018.
Unbeknownst to many, Finland is a mining jurisdiction that hosts five of the eight gold mines in the Nordic region. The country is a safe and stable mining jurisdiction with a strong heritage and supportive political infrastructure with accessible regulations.
Alongside the Laiva property, Nordic Gold also holds 49 percent of the Star property in British Columbia. The company has been in an option agreement with Prosper Gold Corp (TSXV:PGX) since 2013, under which Prosper is the operator of the property, conducting extensive exploration and development work.
In February 2018, Fundamental Research Corp. released a report on Nordic Gold, granting it a target stock price of $0.25 when the company still held only 60 percent of the Laiva gold project.
Nordic Gold is led by a strong management team with vast experience in the mining and capital finance industries. This includes CEO Michael Hepworth, who has built five organizations from the ground up, and Executive Chairman Basil Botha, who has worked within various jurisdictions in the mining space. Please see below for full bios of the management team. The team is supported by a board of directors with extensive insight in both industries as well. Management is significantly invested in the company, holding over five percent of company shares.
- After-tax NPV5 of $103 million and an after tax internal rate of return (IRR) of 46.1 percent
- 75,981 ounces of average annual gold production at a cash cost of $863 per ounce and AISC of $974 per ounce.
- Measured mineral resources of 355,000 tonnes at 1.132 g/t gold and Indicated mineral resources of 3.44 million tonnes at 1.248 g/t gold.
- Inferred mineral resources of 9.03 million tonnes at 1.531 g/t gold.
- Mill grade of 1.45 grams per tonne with a recovery of 90.4 percent
- Life of Mine production of 456,600 ounces gold over a 6 year mine life
- Payback of 1.7 years
- Fundamental Research gave Nordic Gold stock price target of $0.25 with 60 percent ownership of the Laiva project and before the PEA ; the company now owns 100 percent and has a very positive PEA. Un updated report from Fundamental is due shortly.
- Management team holds over 5 percent of company shares