Teuton Resources Corp V.TUO

Update

[stockzorg]

The data in the latest press release shows that the most recent drill results again exceeded the previous averages for Goldstorm.  As a result my estimates increased slightly.  I dropped the short hole 89, which was lost after only 38 meters, from the data, even though the grade was > 1.3g/t.

For the 300H I now show 8.2 million oz. AU up from 7.8Moz.  This is on 298 million tons at .857g/t for the grade.

For all of Goldstorm I show 28.36Moz. up from 26.3Moz.

Effective with this Press Release I added a calculation matching Goldstorm against the current data for Iron Cap instead of benchmarking against detailed drill data from 2010.  Based on that comparison, Iron Cap shows 2.322 billion tons at about .45g/t for total resources in all categories of 33.09Moz (see detail here):

https://assets.website-files.com/5f8f6760f825687e7c1c6508/5fdb652460559d050e6cd7ef_12172020Reserves-Resources-Dec-2020-withSnowfield.pdf

Goldstorm shows the 28.36Moz. on only 1.33 billion tons because the grade is .66g/t (about 47% higher than Iron Cap!).

When I extend that comparison to the 300H, the grade difference is larger -.857g/t is 90% higher than Iron Cap's average.  So only 298 million tons gets us to the 8.2Moz.  Compared to Iron Cap, Goldstorm 300H will be a very efficient mine.  

When plugging this data into the stock valuation model, I now see Teuton stock at a fair value of $4.89  US$, or about $6.35 CDN$.  I'm using $65/oz. as the value for 300H gold in the ground, $1900/oz. as the price of gold for calculating the Goldstorm nsr, and 59.4 million Teuton shares fully diluted.  I am not including any value for Goldstorm resources other than 300H at this time.

I'm open to calculations and input from other folks to review and discuss.

Do your own due diligence.  GLTA. Doug

[MarcusA]

Many thanks indeed, great service to the board! Can you clarify: when writing that you use $65/oz in the ground for the valuation model are your talking US or CDN? Thanks again!

[stockzorg]

I use US$ for gold prices since I'm in the States.

[Countrygent]

Just excellent, Doug, thank you. Can there be any doubt the play to tie-up and efficiently finance and acquire all of TC and KSM now lies through Goldstorm and what looks like a real money-making pit?  There must be a premium tied to being gatekeeper to Rudi's plans. The purchase value of those shallow 300H ounces may well climb as well because of grade, because the price of gold may

[cskhurasu]

Interesting calculation Stockzong. Thanks for doing the work. Some questions come to mind. First, your comparison with Iron Cap does not take into account that Iron Cap copper is worth more than the gold so in metal terms the Iron Cap grade is more than twice your estimate which is gold only. SEA does not publish gold eq grades because there is no such thing as a base metal equivalent to gold

[stockzorg]

I don't take copper into consideration - strictly a comparison of Iron Cap gold vs. Goldstorm gold content.  Iron Cap copper, silver, and moly all have value over and above the gold content.  Goldstorm is a gold primary deposit.  Iron Cap's other minerals don't change the value of the Goldstorm or Iron Cap gold-only components. I'm not clear that copper or any other

[schor]

  I'm also interested to see how your model compares. Thanks for all the great info.

[cskhurasu]

Great stuff. Very clear thinking. The copper at Iron Cap reportedly does make a saleable con so it's not a gold-only deposit for comparison purposes. Lately, copper has significantly outperformed gold. A copper partner for SEA would not be surprising. PREs are usually on the optimistic side since the limits aren't known and the met work and pit engineering (slopes, strip, waste) are

[stockzorg]

P&E Mining Consultants is mentioned as the group providing the drill spacing recommendations.  Since that involved looking at all of the drill holes and evaluating consistency of the deposit, my best guess is that they would also do the estimate - just a guess however.

[flashcash]

I get around 4 to 5 million oz's in a 300H open pit, 1 million Oz in the CS600 open pit and if the DS 5 break surface around 2 to 3 million oz's (rough estimate not a lot of data). Three open pits is a very good position to be in ! I would still like to know if DS 5 broke surface under the ice where did all the grounded up gold ore go.

[NOMOREROLLBACKS]

Did/can/will you do a stock share price evaluation, cad/usa, also for AMK and TUD??

[oilervision]

I'm sure you can work it out based on those companies' balance sheets.

[Redrum180]

     Hi, Zorg:           The share price values you suggest from your calculations do not take into account any premium for "animal spirit" bidding for TUO so by no means are those figures set in stone.  Am I correct, sir?

[stockzorg]

My estimates of market valuation don't take into consideration: - Any gold from Goldstorm other than the  300 Horizon (about 20 million oz of deeper gold by my model). - Any gold from other TC deposits like PSZ, Orpiment, etc. - Any other properties owned by Teuton or any nsr's from optioned properties (I include what's on the balance sheet for exploration assets, but I've

[GillRipper]

Thank you very much for your efforts Stockzorg very Instructive to say the least. I can't wait to see what the numbers look like for the 300 horizon after you plug In the next 11. The likely scenario that follows our maiden RE can be referenced between the 9 min mark and the 12 min mark. I think Lassonde Is spot on. If the POG continues on Its upward trajectory I'm not sure we'll

[Krammer000]

Does anyone have any idea why TEU not following AMK for a spin out? I'm a little confused why? Are they here for the long haul? Come up with 20% of the cost of a mine? 20 % profit plus NSR? I like their business plan. It's definitely for the long run. Very long run. (NSR) generator. I'm just wondering if I can see some payback in the short term not 10-15 yrs down the road. It would be

[highper]

The only the justification for a spin out is a buyout of treaty creek would take out teuton's valuable stable of assets along with it... That teuton shareholders would not get full value for them. The alliance with sprott has ended that possibility for about 2 and a half years at the very least. So if a major wants to buy treaty creek they will have to include the money required to spin out of

[Alaska74]

Thank you highper for explaining that Dino, regardless of what some think, protectecd shareholders interests with the Sprott agreement to vote with him. One of many good moves over many years in my opinion. Every so often someone gets worried. Is Dino's looking after the best interests of shareholders? Look at the years he spent and what he's put together over many tough times to get to

[NOMOREROLLBACKS]

shareholders were asked many moons ago if they wanted a spin out of T/C by TUO as it would be expensive to create a new company. Everyone agreed to the spinout option. AMK has done it already effective mid to late january and TUD will probably follOw suit also as they have many more properties to explore in the G/T.... Hopefully each orebody will be treated similarly and we will end up with many

[NOMOREROLLBACKS]

shareholders were asked many moons ago if they wanted a spin out of T/C by TUO as it would be expensive to create a new company. Everyone agreed to the spinout option. AMK has done it already effective mid to late january and TUD will probably follOw suit also as they have many more properties to explore in the G/T.... Hopefully each orebody will be treated similarly and we will end up with many