GREY:AVGCF - Post by User
Post by
metylman2000on Jan 10, 2011 10:28am
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Post# 17947678
Wellington West upgrade to AVR...
Wellington West upgrade to AVR...Paolo Lostritto, Wellington West Capital Markets (01/07/11) "Resource update lifts Tabakoto grade and global resource; premium valuation applied grade up by 53% to 5.7 g/t; resource only up 11% at Tabakoto U/G. Drilling further defined high-grade structures, but vein thickness may result in dilution and throughput challenge, especially during ramp-up.
Dioulafoundou resource up 44%, which should help with 2012 production. Dioulafoundou O/P and potential O/P extensions at Tabakoto South/Dabo & Djambaye II should provide alternative sources of ore for 2011/2012. And recent Kofi acquisition adds gold resources with growth potential; closed four of nine concession transactions with AXMAN to add 290 Koz. Indicated and 370 Koz. Inferred gold within ~US$8/t trucking distance to the Tabakoto mill.
Raising target to $2. from $1.55; valuation dependent on CFPS growth. Valuation boost from higher production and CFPS in 2012. Maiden reserve estimates targeted for Q111; plus 70,000m of drilling in 2011."
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