A bump from a post of July 22This is the real story. Not a temporary glut of shares on the market. Warren Buffett said that a stock is a popularity contest in the short term and a weighing machine in the long term. I'm thinking long term with this one.
Hi Andrew.
If you read the drill results closely, they are basing the mineral content on a per ton basis. Therefore, to determine the value of First Gold's mineral resource, you would have to break down the value for each mineral and compare it with the current market price. Today's headline reads as follows...
First Gold Intersects 1.43% Li2O, 2,966 G/T Rubidium, 171 ppm Ta2O5, 140 ppm Beryllium, 66 ppm Gallium and 117 ppm Cesium Over 13.55 Metres in Hole LR-10-45
The conversion chart is as follows:
Lithium Oxide with conversion of the Li2CO3 (Lithium Carbonate) price - Li2O
US $15.01/kg or per 0.10%...At 1.43% the actual value per ton would is about $210/ton
Tantale (Oxide) - Ta2O5US $226.50/kg or
.226 per ppm/gram...At 171 ppm the actual value is about $39/ton
Gallium - GaUS $440.00/kg or
.44 per ppm/gram...At 66 ppm the actual value is about $29/ton
Other:Beryllium - BeMoyenne de US $500.00/kg or
.50 per ppm/gram...At 140 ppm the actual value is $70/ton(Source: IBC Advanced Alloys)
Rubidium - RbUS $740.00/kg or
.74 per ppm/gram...At 2,966 G/T the actual value is about $220/ton(Source: USGS, sale of a large quantity from the Tanco mine (CBT-NYSE) whenthere was more information on transactions, 1980 to 1991)
Cesium - CsUS $690.00/kg or
.69 per ppm/gram...At 117 ppm the actual value is about $81/ton(Source: USGS, sale of a large quantity from the Tanco mine (CBT-NYSE) whenthere was more information on transactions, 1980 to 1991)
For calculation purposes:1 ppm = 1 gram0.10% = 1 kg/tonne
Obviously, the two most abundant minerals in each ton of rock would be the Lithium and the Rubidium. However, to get the TOTAL value of each ton of rock you must add up all of the minerals as a group. They are as follows:
$210/ton for Lithium
$220/ton for Rubidium
$39/ton for Tantalum
$29/ton for Gallium
$70/ton for Beryllium
$81/ton for Cesium
Grand total comes to $649/ton. And when you multiply $649/ton by 400,000 tons of mineralized zone (which is my estimate at the current size of our discovery - which is growing larger each day) the current value of the Lac Pivert/Rose property is $259 million.
When you divide $259 million by 75 million shares, the value of First Gold's shares should be $3.46 per share...this is based ONLY on the current size of the mineralized zone at the Lac Pivert/Rose. That doesn't include the value of the Croinor or Camsim property. I estimate those two properties to be worth a combined value of another .50/share...which would put us at $3.96 per share.
Please note, we won't know the actual tonnage of the mineralized zone until the NI 43-101 report is done by a certified geologist. But with the drill cores continuing to expand the mineralized zone, the tonnage could easily take us over 500,000 tons.
I hope this gives you a better understanding of how to determine the value of a multi-mineral property. And OBTW, the current price for those rare minerals could easily increase in value as the "green" technology movement continues to increase demand for their products.
Nohype7
All comments are just my opinion and should NOT be considered as factual. Always do your own DD.