RE: RE: RE: RE: Resource estimate - MY MathFirstly, Jasper you say that you dont think that you dont think this whole area of exploration has 1.6 g/cm. But by definition that exactly what an average is. Some areas of the target are lower, some are significantly higher (as per chart on DLKM website) resulting in an AVERAGE of 1.6g/cm.
From Press Release - "Douglas Lake Minerals' Mkuvia Project averages assay results of 1.60 grams of gold per cubic meter"
Secondly, those results were just from surface samples. I have heard that the 2nd and 3rd round samples will be much higher as they are taken from deeper depths. This is also evident in this comment from press release...
"It should also be noted that the average gold grade in the conglomerates, which is the primary mining target, is 2.6 grams per cubic metre. The 2.6 grams is significantly higher than the average grade of the samples tested".
That being said i will do my math assuming the 1.6g/cm to be conservative.
Assume as per NR:
During the past six months, Douglas Lake's ongoing exploration program has indicated a gold mineralization area of 6 km. by 29 km. by 10 meters in depth of approximately 1.74 billion cubic meters.
1,740,000,000 cubic meters X 1.6 grams au (average) = 2,784,000,000 grams au.
2,784,000,000 divided by 28.345 (gr in an ounce)
= 98,218,380 oz of gold.
Now lets take this a step further.
In todays market explorers get roughly 100$ per oz, and producers get 200-300$ per oz. Now we all believe DLKM will be producing by this summer, and i think the vast majority of us believe gold is about to skyrocket which will make these numbers much higher. But to maintain a very conservative approach i will use 100$ an oz.
98,218,380 oz au X 100$ = $9,821,838,066.00 (potential DLKM value)
DLKM currently valued at $20,740,000.00. (as of FRi at 0.34/share)
Hmmm, a 10 Billion dollar company valued at 20 million. Lets go a step further and make that relevant to the average shareholder.
Potential stock price: $9,821,838,066.00 (market cap) divided by 61 Million shares outstanding. But wait, to maintain our conservative approach, lets assume by production we are at 100Million shares outstanding.
9,821,838,066.00 divided by 100M shares
= $98.21/share
Currently valued at 0.34/share.
Now i have tried to be as conservative as possible throughout this process and you have seen the results. Now obviously these numbers are not gospel, nor have we seen any maps of sampling as of yet. But even if there is only 10% of this, we are still looking at a 10$ stock. Furthermore this little calculation was based on the current area of focus, and does not represent the rest of the Mkuvia property's mineralization.
I've done the math but i'll let you all decide for yourselves whether or not this is currently a good buy,
PS: I am open to corrections of my math and/or information