Astur Gold



Abstract

Astur Gold is a gold company that is developing a fully owed Salave gold project in Asturias, northern Spain (Asturgold, n.p). It is the largest project that will extract the biggest undeveloped gold mineralization deposits in Western Europe (Asturgold, n.p). The company submitted an application for underground mining in 2011 to the Spanish government. This report is a post investment appraisal for the project that aims at giving the detailed account of the viability of the project. Salave gold deposit includes five mineral concessions covering a 433ha land. The company has also secured an investigation permit of up to 2765ha for a total of 3198ha of highly potential gold deposits (Asturgold, n.p). This report will show the predicted future of the Salave project investment in such a way that the investor will see the value of investing in such promising project. Since gold is a precious stone, investing into this project is also extremely precious to both the investor and the company taking up the Salave project. All the data and relevant analysis confirm the viability of this gold mine project.

Astur Gold - Salave Project

Introduction

Overview of the company

Asturgold is a mining company based in Vancouver (Canada) owns the Cantabrian Mining Explorations Ltd., holder of mining concessions encompassing the Salave Mining Group. Currently the company has opened 2 offices in Asturias. Asturgold within its environmental management policy ensure scrupulous respect for the environment with limits well below those required by the Spanish and local environmental laws. Asturgold has a predominantly Spanish team, composed mainly of specialists in various fields, with extensive experience in mining projects in the national and international.

It is one of the huge undeveloped gold deposits in Western Europe. In 2011 September, this company has submitted an application for under-ground mine authorized for Salave along with the submission of the environmental Assessment in 2011 May.

Salave - Statement for Mineral Resources

The Salave project has a basis on the preliminary economic analysis of the project. This economic analysis shows the financials of the project for the next five years (5) years. These projections are subject to alterations in the economy and, therefore, the rational of this statement is to take into account the changes and incorporate them for investors to have total confidence in the project. The analysis of the project indicates that, over the next 18 years, the project will generate a NPV of $196 million.

Valuation of Astur Gold

The Gold Mining industry is one of the few industries that has benefited from the economic crisis and turbulence of recent years. From 2007 to 2012, Astur Gold revenue is projected to grow at an average annual rate of 16.2% to total 14.1 billion pounds. The rapid and continued rise in gold prices has resulted in the increase 18.6% since 2007 which is an average yearly rate. This has been the main cause for revenue and profit growth. In fact, increased demand from domestic and international investors drove gold prices to an all-time high of £1,895 per troy ...