RE:UNDERVALUED?...YA THINK?
My thoughts on GWT's post on the market cap of EXS: 1. Since we have been in a prolonged slump for the gold mining juniors, GWT's valuations on EXS's various assets do appear to be a bit on the rosy side. But once the market turns, and it will, many juniors such as EXS are going to be quickly re-rated. Yes, EXS is undervalued, but so is the entire junior mining space. EXS is just an extreme example of what has become the norm for this very under-loved and overlooked micro-corner of the market. 2. Brahma's criticism still, of course, carries some truth in that TPW's current 1 million ounce resource is made up of a low-grade near-surface cap with splashy, often isolated pockets of underlying deep gold. TPW has not yet been officially certified as an economic deposit. Until that happens, its real value, if any, has yet to be determined. 3. What GWT alluded to, but didn't come right out and say, is that EXS's current deep drilling and step-out drilling is expected to further expand the known gold resource at TPW. TPW is open at both ends and at depth, and the model that EXS geologists are using expects gold grades to increase at depth. If higher grades are hit at depth, the deposit is expanded laterally with step-out holes, and then everything is tied together with more tightly spaced holes, this is a 1 million ounce deposit that can grow rapidly. Obviously, at that point the market cap and share price of EXS would be expected to grow along with the TPW deposit. 4. Chester, East Bay, PG-101, Ogden, and the other exploration properties of course all add some value to EXS. But anyone looking for near term appreciation in this stock should be focused almost entirely on TPW. The recently completed round of drilling at TPW will be very important in determining the near future and direction of Explor Resources. GLTA. I continue to pick away and buy small quantities on any price drops.