observationABC is a hypothetical but plausible exploration mining company with a porphyry ore body containing 5 billion tons within a footprint of 1000m x 2000m x 1000m x 2.5). At present some drilling has been done(20 to 30 holes). A drill program is underway and must be completed before a resource can be calculated (6 months away) which would lead to a PEA and then a PFS. The last 2 holes hit 1% CUEQ over 300 to 500m. What is the value of this ABC property at present if each pound of CUEQ is worth $0.05/pound at this early stage?
5,000,000,000 x .01 x 2204 x .05 = $5,510,000,000 CAN.
Company ABC would be worth $5.5 B CAN.
As infill drilling, resource calculation, PEA, PFS are complete then $0.05/pound would gradually increase as project is derisked.NOTE; $0.05/pound is conservative.
Soon we will see what the HAT porphyry has to offer.