RE: att bamakoAt first I thought Herb was nuts when he said $5 per share when drilling starts.
Then I did some simple math.
PLE is looking at a 6 square km target. let's assume for a second there's gold at surface on half of that ...
3 square km = 3,000,000 square metres.
now let's dig this whole area 1 metre, we now have 3,000,000 cubic metres.
at 2 tonnes per cubic metre we have 6 million tonnes at surface.
now let's assume 1 g/t au grade on average.
that gives us 200,000 oz of gold.
at 10 metre depth we have 2 million oz of gold.
Based on 100 million shares outstanding and $150 per oz of gold per share (this is what barrick paid for Araquipa in 1996) there would need to be 3.3 million oz of gold to justify $5 a share.
now since the samples so far have been well above 1 g/t and in some cases rediculously high to a depth of as much as 40m, this scenario is not as far fetched as it first seemed.
If the grade averaged 5g/t over 40 m, you'd only need 500 metres square (ie a square of land 500 metres in length and width) of surface to yield 3.3 million oz (or 1/12 of the land area they are currently looking at)
I think I'll keep my 100k+ shares for a while longer