TSXV:AMG.P - Post by User
Comment by
dave4275on Nov 21, 2011 12:51pm
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Post# 19254606
RE: RE: RE: Monday News
RE: RE: RE: Monday NewsThis is pretty crazy. They increased the resource area by a factor of 4. That means, assuming similar grades to last year, we're going to add at least 3 million more ounces to the resource this year alone - AND we still are waiting for 9 more holes - AND everything is open, both at depth and laterally.
This is easily a 5-10 million ounce deposit within 1 year (which is something that is found once every 5-10 years globally) and we have a market cap of $10 million....and we're talking about a shallow area - they're aren't drilling 1000 meters down (if they do, and find the same grades, we're talking about 20 million+ ounces here, which a distinct possiblity). Also, this stuff is within a few 100 meters of the surface = cheap cost to recover.
The grades here are better than the Fort Knox gold mine in Alaska - and potentially much bigger (do your DD on that).
Eventually either gold prices need to go down to under $600/ounce or someone is going to buy out this company. If they bring the resource up to 4 million ounces this year, the company is trading at $2.5/ounce. That's unheard of - even if gold were under $1000/ounce.
Of course, there will be some dilution over the next year, but either way, this should be a $100 million market cap company right now.