Voltalia Ord Shs VLTAF

More Comparables

[eebler]

It is hard to find comparables where it is apples to apples, so here are some apples to oranges:

Red Back's main Tasiast open pit - avg grade 1.3 g/t (does not include Greenschist zone)
- not saying that VTR has the size of Tasiast, but g/t is very comparable, and the width of the Tasiast body is 50m-100m true width, which VTR appears to dwarf
- cash cost at Tasiast is one of the lowest in the industry around $325-$350
- can't compare share price given mid-tier producer versus junior explorer, but grades and ore body dimensions are interesting comparable

Andean Resources - multiple u/g as well as potential open pits
- approx 3.5m ozs with very high grade averages of 8 g/t
- cash cash is estimated to be <$200/oz
- provide them as comparison only due to rough comparable of what Kiaka could be somewhere down the road
- share price around 3.00 without ever having produced an ounce of gold

Premiere Gold
- around 1M of 43-101 but a number of other properties without 43-101's (which VTR has lots of as well)
- combination of u/g and open pit for HardRock project
- share price around 4.50-4.75 and they look to be far from production
- "stuck" in a JV deal with Goldcorp, which means that it would be hard for anyone but Goldcorp to buy them out and right now Goldcorp doesn't seem interested

Already compared Keegan last week, and their sp is 5.50 or so.  They have Esaase, which is a year or two ahead of VTR in terms of stage but roughly comparable in size and grades.  They also have Asumura, which hasn't been estimated yet.  Some drill results out of Asumura included 4 g/t over 14m, so while it is higher grade the widths are much smaller. 

Cutoff for VTR is 0.3 g/t.  At high gold prices, and a >90% recovery rate, the low grade envelope that surrounds the higher grade material could contribute a very significant upside.  Assuming the get to feasibility stage, they will be keen to test recovery rates of the lower grade stuff once they ensure they are optimal on the higher grade.   I would expect them to heap leach it and take what they get. 

eebler