Gold Zone 43-101 Net ValueGOLD ZONE PROJECT
Calculation Proviso's
-Existing Company numbers and public sources were used.
-Cash Costs rounded and a current arbitrary number applied to the AU calculation.
-AG and CU were not calculated with any cash costs assigned as they were built into the AU calculation. (See Below)
- Resource pricing was calculated with a current price "derated" 15% for error margin and the purposes of debate.
-These numbers "DO NOT" take into account any new resource added in the future nor do they account for any reduction or increase in world commodity prices.
-Calculated using standard processes and formulas germane to the mining industry.
-I am open to interpretation and discussion, however don't shoot the messenger please.
Numerical Standards
NI 43-101 compliant mineral resource
- 255,100 contained ounces of gold
- 1.39 million ounces of silver
- 7.29 million pounds of copper
-Total Revenue: $247,500,000
-Total after cash costs removed: $178,869.600
-Net O/S used for purposes of this calculation: 50,000,000
-Asset values for mine equipment, mill, goodwill etc.not included in this calculation.
So taking into account these factors, and the additional fact this is for only one of the companies projects and not the flagship project that's currently being progressed. My calculations came to a net net share price of $3.58.
From a stock forums information via the company website:
- Option to acquire 100% of advanced stage Gold/Copper/ Silver project
- Over 20,000 meters of drilling completed to date
- Significant exploration be upside on 14 previously identified targets
- 2009 program to evaluate potential expansion of mineral resource
TheGolden Zone Project is located 240 km north of Anchorage, Alaska on thesouth flank of the Alaska Range. The project is accessible by road, andis just 19 km from the Parks Highway, which connects Fairbanks andAnchorage. A fully self contained camp and work facility is on site.
Theproject is an advanced stage gold-copper-silver system withapproximately 20,100 meters of drilling, extensive trenching, soilsampling grids, multiple geophysical surveys, and metallurgical samplescollected from core and the underground workings in the main Brecciazone.
Golden Zone Technical Report
The value of the by-products is deducted from the final cash cost ofthe metal. For example, if a copper mine produces gold as a by-product,then the value of the gold produced will be deducted from the cash costof the copper. This is the usual accounting treatment for by-productsin most industries.