RAYMOND JAMES COMMENTS comments not too bad but maybe RJ should comment on the 6.1 million ounces of high grade stuff then
from RJ:
TRR reported a resource update at its flagship 92.5%-interest Cote Lake deposit, Ontario. The new resource totals 239 Mt grading 0.90 g/t for 6.87 Moz, at a 0.3 g/t cut-off (14% Indicated, 86% Inferred). Compared to the previous (Mar-07-11) resource, tonnages are +82%, grades are -10% and contained metal is +63%. A LT gold price of US$1,500/oz was assumed (vs. US$1,200/oz in March 2011) and drilling through September 2011 was included. Our view is that deposits in the >6 Moz range are rare, potentially making TRR a more visible target for a takeout by a major, and we remain confident Cote will be developed, particularly with sustained strength in gold prices. However, our takeaway is tempered by the 10% drop in grades – a corroboration of TRR’s reduced exploration success rate in the past 12 months (particularly the SW portion of the deposit) and poorer potential economics (on a cash cost basis).
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poorer economics??..this comment must be on a per ounce basis, as even if they make only $100 per ounce on the low grade stuff..then overall profit will be $100 higher..that is TRR will make more money and be worth more. we need to deal in terms of overall dollars..hopefully the PEA will show that.