Low End Value of just Verkhuba at this Stage - $30m11 Feb 2025 06:42
A Volcanogenic Massive Sulfide (VMS) deposit with 23 million tons at 1.2% Cu, recently defined by a JORC-compliant resource, could attract interest from large mining companies. The price they’d be willing to pay depends on several key factors:
1. How Mining Companies Value Deposits
Mining companies typically value projects based on Net Present Value (NPV), the Market Value per Pound of Copper, and comparable transactions.
A. Valuation Based on In-Ground Copper Value
• Your deposit contains 276,000 tons (or ~608 million lbs) of copper.
• Using a typical in-situ valuation metric, explorers often sell at:
• $0.01–$0.10 per lb Cu (early-stage deposits)
• $0.10–$0.30 per lb Cu (advanced-stage deposits with feasibility studies)
• $0.30–$1.00 per lb Cu (near-production or producing mines)
Since your deposit is at the JORC resource stage but lacks feasibility studies, it might trade at $0.05–$0.15 per lb Cu.


Estimated range: $30M – $91M USD.
B. Valuation Using EV/Resource Multiples
Junior mining companies typically trade at an Enterprise Value per Pound of Copper in the Ground between $0.02–$0.10/lb at this stage.
Applying this to your deposit:


So, a realistic price range might be $30M – $60M, unless there’s significant exploration upside.
C. Comparable Transactions (Recent VMS Project Sales)
Looking at recent VMS deposits sold in early stages, the range varies widely:
• Smaller VMS (5–10Mt): $10M–$40M
• Mid-size VMS (20–30Mt, like yours): $30M–$100M
• Larger, high-grade VMS (>50Mt): $100M+
Your JORC-defined 23Mt deposit with 1.2% Cu falls into the mid-tier. If it had a higher-grade zinc or gold component, it could command a premium.
2. Key Factors That Affect Sale Price
• Stage of Development: Pre-feasibility or feasibility studies significantly increase value.
• Metals Mix: If the deposit contains gold, zinc, silver, the price increases.
• Infrastructure & Location: Proximity to smelters, roads, and power lowers costs.
• Market Conditions: If copper prices surge, mining companies pay more.
• Exploration Potential: If there’s upside for more tonnage, the value rises.
3. Likely Sale Price Estimate
Based on these factors, a large mining company would likely offer $30M–$75M USD in a cash/equity deal