Nevada Is 'One Of The Cheapest Places' To Operate If You Are A Gold Miner - Mining CEO
(Kitco News) - The recent mega mining mergers point to an uptrend in the mining industry, said Corvus Gold CEO Jeff Pontius, adding that there is a reason why Nevada is at the centre of all the recent M&A activity.
“Nevada turned out to be one of the cheapest places that we can actually operate as a gold industry right now. And I think that is why it is the focus of all these big mergers right now,” Pontius told Kitco News on the sidelines of the BMO Global Metals & Mining Conference. “We do most of our economics based around $1,200 an ounce — that is the base case scenario. But, $1,350-$1,400 is all gravy for gold guys.”
Increased M&A activity is also a reinforcement for the gold sector, especially for those focused on exploration, Pontius noted.
“When you look at some of those big acquisitions. They all have projects that are in late-life, they are optimization projects, or spin-out projects. They are really for these new discoveries,” Pontius said.
This is a big deal for Corvus, which is an exploration company. “That’s our bread and butter. So, from our standpoint, it is very good news,” the CEO said.
In 2019, Corvus will be focusing on expanding its current Mother Lode Project, located 165 km northwest of Las Vegas, as well as researching new deposits.
“We expect to grow the Mother Lode in excess of two million ounces, which will be a good expansion for it … The project is turning out to be one of these more classic sediment-hosted deposits,” Pontius said. “We [also] have a series of new exploration targets built around a sediment-hosted type discovery. We’ll be starting to test those in a couple of months. We’ve got some great opportunities and it could be another Mother Lode.”