RE: Pit Zone GoldGood Post NB:
Kootenay further reports the significant gold component reported to date has yet to be included in published resource calculations. Additional metallurgy testing will be conducted on these holes in the near future to determine the gold's' leachabilty and recovery and extraction methods required.
Lead and Zinc are also increasing in demand and are in the top 5 metals required in 2011.
As soon as we get over 1.00 (and we are being held below for a reason) funds will be buying in and I believe that this is not going to be insignificant but high volume. We then go quickly to approx 1.50 or higher depending on next step out results. This also could be held down for another company to take over at a reduced price, I hope not but I expect a significant rise in price shortly. When we went over 1.00 a couple of days ago it quickly spiked to 1.09 and they had to work at getting it back down quickly. Every time we close in again anon is there to drive dwon. This is a great buy at this level. Of course this is just my opinion.
----------Original Message Posted 12/3/2010 11:29:59 PM----------
Just a quick back of the napkin gold calculation.
Assumptions
Judging from the already reported gold intercepts I am using a value of .35 g/t gold from all of the holes. This is only an estimate of the gold values in the pit zone defined resource.
Known Values
The defined resource consists of 5.22 million tons
Current value of .35 g/t gold is $ 15.92 per ton X 5,220,000 tons = $ 83,102,400
Calculations
Let’s assume a 50% recovery rate $ 83,102,400 / 2 = $ 41,551,200
Insitu gold value $ 41,551,200 / 46,577,100 fully diluted shares = $ .89/ share
Note: This does not include silver, lead, zinc, warrants and options that may be exercised, or the current cash in the treasury ! IMHO this stock is considerably undervalued even at today’s trading range.
I would be interested to hear from a Geo type on the expected recovery on these estimated gold values. Do your own calculations and dd.
NBM