FIlled yesterday. GraciasThanks for the 14 cent shares yesterday. First buy I've made in a long time in SDR... shares topped up to a nice round number now :)
Hoping we see some juicy infill numbers I've been waiting for ( FOR YEARS) to correlate with near 50.00 per oz. price of silver. Anyone interested to hazard a guess to what the resource calculation will look like after this year's drilling compaign? Could it really be a 300 million oz resource? Anyone looked at comparables and what enterprise value we can attribute to Measured, Indicated and Inferred in mining friendly Mexico?
This from the Stroud website:
Geological Model
The geological model for the Santo Domingo project is the Cinco Minas deposit located 9.5 kilometres to the southwest of the Project. The majority of the silver and gold production from this mine took place in the 1920s. Fifteen million ounces of silver and 97,500 ounces of gold were produced from 1.2 million tons of mine ore, with recoveries of the silver and gold ranging from 88% to 90.5%. The main mineralized zone had a length of 550 meters and was mined to a depth of 700 meters.
Using historical data, each ton of mined ore had 8.25 ozs. of silver ( simple math)
Each ton ore therefore would have a silver value of $371.00 ( @$45 silver)
If there is somewhere between 100 million and 300 million Ozs of silver @ Santo Domingo as George hypothesizes and there is 180 million shares fully diluted, that means that each and every share would have somewhere between .55 ounce to 1.66 ounces of silver per SDR share. What’s the in situ value of silver in the ground? Does 5% or $2.25 make sense ( 45.00 silver) ?
If it does then, a resource calculation that gives us 100 million ozs of silver would give us a share price of $1.23. Make sense? At 300 million ozs, that number jumps to $3.73 per share.
This is why some of us have followed this resource around the stock market for a number of years. And I think 5% of the value of the resource ( MI&I) is actually LOW compared to peers.
I’m still doubtful that SDR will bring this project forward, but SOMONE will be interested in carrying this .