RE: RE: RE: Shares Issued 205,682,307those who are concerned about this are right. 200M shares is not a good place to be this early. this will be diluted 2-3-5 times, by the time a project is financed or JV partner is found.
for those of you who want a direct comparision for where this project can go by market valuation - see:
www.almadenminerals.com
particularly see the ELK property. Its less than 200km as the crow flys from bonaparte. they have similar grades, tonnes, results, oh ya except one glaring discrepancy - they actually have professionally determined 43-101 resources. something that EZ is only dreaming of at this point in time, evn if you have resources, that does not mean you have reserves. FYI reserves means that it is money making ore, proven by feasibility study done by professionals, not stock pumpers or whoever.
There are 3 major points here:
1) narrow vien deposits are very hard to define / mine, and even harder to make money at. this is why Almaden has been shopping this property around for years and no takers, even with RESOURCES of several hundred thousand tonnes, and good grades, ALSO see JPAC minerals, and about 30 other claims listed in canada on the TSX V, only super high grades have the real potential.
2) Almaden has a portfolio of projects, several better than the ELK deposit ( with a few hundred thousand tonnes of 1/2 to 1 oz material that by proxy is about the most likely best target EZ could hope for) and yet its market cap is less than 50 Mln, and sharebase smaller.
3) EZ does not possess the mining skill, be it operational, project building or finance to build the bonapart, should it become a major operation. for that they would need a mid tier or sr partner to come in, and they will be left with a fraction of some type, but definitely less than half.
do the math, if the market value of the bonaparte has potential of ~ 50 MLN, thats about 37 MLN for EZ shareholders, or a measly 18 cents a share, and that may be if EZ has other good properties like Almaden does. even if its double or triple that is this worth the risk??
In other words, to all of you and GOLDBUYER especially, YES this is a major gamble, you are speculating that EZ is going to find something BIG.
but who's to say they wont? like a large tonnage open pit, or proven tonnage and reserves of a couple hundred thousand tonnes of better than 1 ounce for any Underground mine to proceed, or 4-10 grams for open pit.
They have not to this point in time put out any results that support anything big. right now all they have is evidence of maybe 10-20,000 tonnes of half oz material. this hardly qualifies as even an investment yet. If they have so many viens on surface, why the difficulty and constant delay to send a measly few thousand tonnes to kinross? did the viens turn out to be dead, it certainly doesnt take nearly a year to surface or underground mine this much material.
For this to show continued potential - Look for them to find some assays of 2+ oz material UG over long intersections. high grades over intervals of less than 1 - 2m don't mean much. barring that they need to get a drill out to see if there is open pit potential. grades down to 1/4 are supported by open pit economics, but the tonnes need to be there.
UG mining is a terribly expensive way to define grades and hence an expensive longshot at this point.