RE:Resource estimatePredicting the reaction of the market to the results obtained and published in a 43-101 technical report is something unpredictable.
Personally, I prefer to assign a value to each of the ounces of gold in the soil, according to their classifications. Not knowing how the market will react, this method at least helps to maintain confidence, since the market value should in principle represent the value of Roscan's assets. As new information becomes available, the value per ounce of gold may become clearer. This information is the gold grade, the number of pits, the stripping ratio, the recovery rate, etc.
Considering the few drilling carried out by Roscan, the mineral resources will probably be classified in the indicated and inferred category. The distance between each borehole is very important and does not allow obtaining a better quality classification. Consequently, a lot of money and time will be required for these resources to one day become mineral reserves. Depending on this situation, the value assigned for each ounce of gold will have to take into account the particularly high level of risk.
Roscan's market capitalization is currently $ 80,000,000. I qualify this capitalization as very generous and overly optimistic. Therefore, don't get too distracted with the next results. For example, 500,000 ounces of gold in the Indicated Resource category + 2,000,000 ounces of gold in the Inferred Resource category would justify a market cap of $ 20 million to $ 30 million for Roscan. As a result, Roscan could lose $ 50,000,000 in market cap on the 43-101 release day and there would be nothing wrong.
Be careful because in the current state of things, it is only gambling.