Gold in ground... SO I said i woud throw off some calculations about the current valation of the company, and how an updated resource estimate on the Minaflores property could affect the share price.
I think im a lot less bullish then most, I simply look at the numbers and compare.
Things to know:
Only Measured oz used, indicated and infered are speculation in my opinion, as the goal of this estimate is to come up with the bare minimum valuation. IE worst case scenario.
That being said, MINAFLORES Deposit currently has a NI 43 101 Resource estimate at:
1,227,593 ounces of gold MEASURED @ 0.9g/t
Market cap of 29.5 million (mcap @17.5 cents - SP prior to last weeks speculation jump)
That's gives an in ground valuation at ~$24/oz in ground @ 0.9g Au/t
So, as a bare minimum valuation, for every 1 million oz increase in the measured category the MCap should go up 24 million dollars
Now the grade will affect the valuation as well:
Add 10% for each .1g/t increase in total measured category, and vise versa for a decrease.
Therefore, with a increase of 1million oz of gold in the measured category @ a grade of 0.9g/t:
Market Cap: 53.5 million
SP: 30 cents to 32 cents.
There you go, no BS, no pump. just the bottom fuking line.