Chinese press releaseI have been reading the Chinese press release over as well. I am far from an expert on geology, but there is no doubt that these numbers are spectacular and indicate that the 300+ million Ag equivalent ounces in China that SDRG is expected to have is going to be a conservative number.
The problem is, as in the audit, that Chinese accounting/auditing/engineering lingo is different than in North America, which is a big reason why an inexperienced auditor like SF Partners had so much trouble finishing the 10K. Kind of like seeing drilling reports from North American companies, and then having to read something like this one.
But the gist of it is that, at Laopondao alone (just one of nine properties SDRG owns at Erbaohuo, and by the way the next one being 43-101'd), there are already around 58 million Ag equivalent ounces of Chinese 122b resources (including Pb, Zn, Sn, Ag, and Cu), of which SDRG expects to prove up around 22 million in 2007 alone on a very limited budget.
Also, the new anomolous zones appear to have enormous upside potential, particularly Anomolous Zone 95, which is noted to have a prospective Ag equivalent resource of 1,441 tonnes (46 million ounces) and Mineralization Belt II/Ore Body II-2, which is noted to have a prospective Ag equivalent resource of 1,134 tonnes (36 million ounces). The other anomolies have prospective Ag equivalent resources of 116 tonnes, 21 tonnes, 99 tonnes, 285 tonnes, and 100 tonnes, which combined add up to 621 tonnes, or another 19 million ounces.
Thus, adding up the prospective resources of the newly drilled anomolies yields upside to the known 58 million ounces of (46+36+19) = 101 million Ag equivalent ounces. In other words, I would interpret this release to say that Laopondao could have up to 159 million ounces of silver equivalent resources, not too shabby.
If my calculations are even remotely close to correct, this is one of the cheapest stocks on earth. All feedback is appreciated.
yoyo
Exploration Plan and Objectives for 2007
As a result of the planned 2007 exploration work, the following resources or reserves are expected to be discovered: copper 15,000t, silver 250t, tin 3,000t, lead and zinc 20,000t. The 2007 work, which is expected to consist of the projects detailed below, seeks to identify 700.5 tonnes of accumulated silver equivalent resources/reserves (Chinese national standards 122b+333+334). The total silver equivalent resource of Laopandao is projected to be 1,825.8t. The exploration budget for Laopandao is RMB4,754,000 (US$621,194).