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Encore Renaissance Resources Corp V.EZ



TSXV:EZ - Post by User

Comment by BigNickon Feb 15, 2010 1:57am
337 Views
Post# 16785105

RE: ntheno

RE: nthenoMany good points here.

however the share price dreams and some other commentary is nonsense.

there are well over 100 million shares outstanding; there will be over 200 M by the time any financing or JV action came about (in the ~2% chance this actually becomes a mine).

$20, 50 100, share price? that would be 4 Billion, 10 Billion, or 20 Billion in market cap. and that would just be on the ~half to 3/4 of the deposit that EZ owns.

 this is outlandish. the richest mines in the world dont have a value like this.  for a success story, look for a $ 50-250 Million market cap, or roughly translated to a diluted shareprice of about 50 cent to a couple bucks, best case. this alone would be like winning the lottery, and is highly unlikely.

the other comment from the news that "profit has been made" is also untrue.  they are probably burning through the cash, and the 1000 t sample will yeild about 1 ounce max, and payable at 50-75% would garner about 500-750k in revenue, and while it may offset a fraction of costs incurred to date, would not be profitable.

of course that would assume that the bulk sample has the rich grade, and that is yet to be proven.  for any of you who know anything about geological sampling and the nugget effects of veiny deposits like this, will know the error in estimating the grade of the ore is +/- 100% until it actually gets processes and the gold (and grade) comes out in the wash.
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