ONGold Resources released their updated MRE for their Monument Bay property today.
With 2 million ounces (M&I) or 2.49 million including inferred, it’s underwhelming. This is even with a low cut-off grade of 0.20 g/t, assuming $3000/oz. For perspective, the historical resource was a three-million-ounce resource (M&I and inferred) at 1.15 g/t.
Also disappointing: the MRE excluded tungsten. The company added ~13,900 tungsten assays to their database, but the language in the NR suggests they couldn’t establish sufficient continuity to include tungsten in the resource estimate. That evaluation is now deferred.
This was the main issue. Monument Bay has been kicked around since 1987. What was going to make it mineable finally, I hoped, was the critical minerals angle presented by tungsten. Without tungsten, it’s just an old project, partially underwater, heavily encumbered by NSRs (Franco-Nevada 2%, Triple Flag 1.5% on certain areas).
While their TPK project is an exciting exploration asset, I’m not willing to stay invested solely for exploration upside. I’m out with a 14% gain. You live to fight another day.
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