AEM appears to have a head start, but there is no guarantee that it would be the eventual winner, since other majors are watching PRB with keen interest. PRB is sitting on some 4MozAu for constraint pit along with the recent discovery of the HGZ (additional 4 -5 MozAu).

With the Market Cap of about $150M the in-situ value is about $150/8Moz = $18/oz, or $15/oz for a deposit of 10Moz, which are dirt cheap for a large size deposit in a friendly jurisdiction. Note: Not too long ago (~9 months) when the POG was at around $1700/oz Galway was taken out at something like $200/oz.

My crystal says AEM may double (or triple) it's investment but it would not walk away with the prize, if a major with lots of coins in the pocket comes waltzing in.

Casimir (18 June 2013) was recommending $4.25/s (x 75Ms = $318M) for the 8-10Moz and some $30M cash in PRB treasury, and other holdings such as the chromite property in the RoF (valued at some $100M). Correct me if I'm wrong, but Casimir only paid attention to the gold at Borden and discounted the cash and the value of the chromite. If so, 318-32- 100 = $186M for the gold, i.e. some $18 to 23/oz. which is dirt cheap for PRB entire holdings.

There would be additional upside if PRB continues to produce high grade intercepts... And of course, if the POG is heading back up to $1400, 1500, 1700/oz,... then the story of PRB would need to be re-written.

goldhunter