Carbine Resources (CRB.ASX) is re-developing the historical Mount Morgan gold and copper tailings project in Queensland

Carbine Resources (CRB.ASX) is re-developing the historical Mount Morgan gold and copper tailings project in Queensland. Carbine released a positive Scoping Study in late 2014 that forecasted production of 36,000oz pa over an initial 8 year mine life. However the most attractive aspect of the project are the low AISC that are forecasted to be less than US$400/oz Au, mainly due to by-product credits. We have determined a base case valuation of $0.17 per share. However, we believe there is significant upside potential in our valuation as we believe there is scope for an increase in the resource (confidence level, size & grade), as well as a reduction in capital and operating costs. This could see our valuation increase up to $0.46 per share. For the full analyst report which includes video of the site trip to the operation, management interviews and a detailed explanation of our valuation analysis click here (VIEW LINK)