Let's try another approach, a conspiracy theory. Perhaps, we all too naive in this business. Starting with the end result: Management wanted to sell the Lamaque deposit, therefore the RE then the upcoming PEA are required as a paper exercise to show to potential suitors (for them to justify to their own shareholders that they have some concrete evidence to support their offer). The updated PEA is part of the bait to make the package a lot more attractive for the frenzy during a bidding war.

Here is the current status:
-Current RE (as off Nov 2016): The Indicated + Inferred RE are ~2.8Moz @ ~6gpt (higher grade than Borden PRB which was sold to G for C$526M, at that time Borden had 3.9Moz). Another recent example is Kaminak with 3Moz @1.45gpt was sold to G for over C$500M)
- Exhibit 9 of the latest iA Securities Rpt has some NAVs for comparison (ranging from C$588  to 759M).
- The upcoming PEA based on the Nov RE won't be a surprise either. It will show a very profitable mine @ 100,000 oz/yr as a base case for more than 5 years (the 2015 PEA shows ~5 yrs). The LoM would be somewhere between 15-20 years. Of course, the mill rate can be increased for higher production/profit. The Capex for it would be below $100M.

I am not sure how they will treat the Sigma mill in this deal. Presumably, management has some creative ideas for it (renting it out for some NSR during the first few years, while they are exploring Sigma/Lamaque Deep?)

So, how much would be a fair price for the Lamaque Project deposits, assuming that the updated RE would be a whopper...say heading toward 4 Moz with most of it in the indicated category?
How about $800M for the whole Lamaque Project, or something like $1.75/s.

I would say $800M (or some cash plus stocks) is plenty to explore Sigma/Lamaque Deep and other GRC targets.

Essentially, ICG would sell the the front-end (production part) of the the choo choo for funding its back-end (exploration) of the choo choo. Sounds like "not a half bad" conspiracy theory.
GH