Post by
mr46 on Jul 11, 2011 11:31pm
Eleonore deposit
At the AGM what I learned very interesting was the increase of the gold reserve at Eleonore . André said the gold reserve increased to 11M ounces Au on very conservative basis but with the latest results provided by Goldcorp those reserves could increase to 16M ounces Au ( optomistic scenario ) and we are talking gold ounces no DEEPER than 1400 meter .
Also , I already knew the royalty is worth around 210M$ at 1000$/ounce Au . What I was not aware of , gold royalties are not discounted like many other royalties because you can find more ounces over the years and because gold is considered a hedge against inflation . So if you look at the SP , the properties are worth 2$/ share and Goldcorp have not begun drilling the property ( 500km ) André said that they don't have time and the staff to do it . Next year they will drill deeper than 1400m with the exploration shaft completed . By the way , by proceeding with the ramp ( 1 km away from the mine ) Goldcorp workers encountered visible gold .
I understand why Brent Cook said VGQ is the safest gold exploration company worldwide . Yes I am bullish and feel confident that Eleonore alone will increase VGQ value over the next 5 years . It is only the beginning !!!