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Eagle Royalties Ltd T.ER


Primary Symbol: C.ER Alternate Symbol(s):  ERYTF

Eagle Royalties Ltd. is engaged in holding royalty assets. The Company holds royalty interests in approximately 35 mineral exploration projects in western Canada. These projects are being explored for commodities that include gold, silver, critical metals, uranium, rare-earth elements, diamonds and industrial minerals. The Company’s portfolio includes the flagship AurMac (McQuesten) Royalty that overlies a portion of Banyan Gold Corp’s gold discovery at their AurMac Property located in the central Yukon Territory. Its Schott's Lake Royalty, George Lake Royalty and Knife Lake Royalty are situated in Saskatchewan, Canada. The Eskay Creek Royalty is situated in British Columbia, Canada. Its other royalties include Acacia, Adamant, Albert Lake, Axis Lake, BC Mas, Beaven, Black Diamond, Black Water Regional, Brownell Lake, Cathro, Coyote Creek, Cup Lake, Elsiar, East Goldfield, Fort a la Corne, Dianne Lake, Hanson North, Hot Punch, Hunter Basin, Manson Bay South, Kalum and more.


CSE:ER - Post by User

Bullboard Posts
Comment by bot_feederon Jan 04, 2011 1:09am
365 Views
Post# 17920656

RE: Gold Fever!!!

RE: Gold Fever!!!Redrum:

Eau Claire is an established deposit of high grade gold with approximately 1 million ounces, albeit primarily in the inferred category.

It has been a number of years, I believe about 5, since the 43-101 and there is a great deal of drilling that has been performed since then.  There is widespread consensus that the new 43-101 that reflects all these more recent results will expand the resource considerably.

At roughly 100 million shares fully diluted at a price of about $2, you are looking at a market cap of $200 million for a company that at the least has 1 million ounces of high grade gold in close proximity to a large mine being developed, as well as roads and electrical power, which means the capital that would need to be expended to develop the Eau Claire deposit should be modest.

If one believes Eau Claire is likely to host at least 2 million ounces of high grade, and that a fair valuation is let us say $300 per ounce, then that would mean Eastmain would more appropriately be valued at $6 per share rather than $2.

That is strictly based on Eau Claire.  Eastmain Mine has ~300k ounces of good grade gold and is liable to host considerably more, adding additional value to Eastmain stock.  Eleonore South has potential to host an economic gold deposit, possibly a big one, but that is speculation so I don't put any value on Eleonore South although I do consider it to be a "free ride on a highly prospective blue sky project" that who knows, just like other blue sky projects, just might host something impressive.

But I think most Eastmain bulls would agree with me that there is a good case to be made that Eastmain is a good value simply based on the gold they have in the ground at Eau Claire which one can ascertain from ther 43-101 in combination with the subsequent drilling results.
Bullboard Posts