Just read a NOBS analysis of Ventana (VEN), an exploration stage junior looking to get bought out.

The author felt it was reasonable to assume VEN's gold could go at an in situ price of $170. Apparently, majors are prepared to pay lots of money for juniors holding proven gold deposits; the rate at which a company like Goldcorp or Barrick mines their own gold means they constantly have to buy new deposits to keep their future looking good.

But the value of the deposit depends on the results of the 43-101 and the pre-feasibility study: no miner will pay 3 figures for gold whose economics haven't yet been determined. Due diligence is necessary.

I assume a 43-101 on a deposit like this would take a large number of holes, in order to prove up a figure over the area we expect to contain gold. Holes cost money. A pre-feas will take a lot of money too. All this money comes from dilution. So any calc of value has to assume how many shares are going to be out when GNH is finally able to sell the deposit.

But maybe one of the experienced mining people here can shed some light on what you'd expect the per-ton mining costs would be for a deposit like this. Am I right in thinking the gold-bearing ore is at the surface, so you'd have a low strip ratio?

Also, how hard is it to mash quartzite to get at the gold - is it simple work? I'm a newbie, but I was under the impression that the costly stuff is the sulphides, and quartz is a cakewalk.

Those two things, if true, would probably mean an increased in situ price.