RE: SXL Recap...AgainHere's a recap of my due diligence that I reported a few months ago, for what it's worth. Based on the 2005 NI 43-101 report for Nash Creek property (metal prices taken from kitco.com today):
Indicated Resource:
375M lbs zinc @ USD $ 1.60 = USD $600M
67M lbs lead @ USD $ 1.30 = USD $ 87M
3.4M oz silver @ USD $12.69 = USD $ 43M
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Total = USD $730M
Inferred Resource:
139M lbs zinc @ USD $ 1.60 = USD $222M
25M lbs lead @ USD $ 1.30 = USD $ 32M
1.1M oz silver @ USD $12.69 = USD $ 14M
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Total = USD $268M
Which puts a value, on this property only (and excluding the drill results of June 2006 which will expand the Indicated and Inferred resource) of approximately USD $998M, or slightly more than CAD $1B.
Given that the resource is in the ground, and assuming a very conservative 10% profit to the actual value of the metal once you pull it out of the ground (operating costs, etc.) still leaves a very conservative profit of CAD $100M dollars. If we are really lucky, and they expand the resource to 20M tonnes as they expect (thats roughly 5 times bigger than the current resource base of 3.4M tonnes) giving a market value of CAD$500M.
And doesn't include the other properties they have.
Current market value at .18 (courtesy of tsx.com) is less than $12M ... very cheap.
Good luck to all.
Feedback is welcome.