RE: RE: RE: RE: RE: A Fun Time for TRA shareholder Hi Rodjr
The market cap question is an interesting one....The one thing that still bugs me is that Teras has not put out an updated map showing the location of the latest rotary drilling program. Its the least thing they could do for their current and potential investors. When I initially looked at this play, I based my opinions on what I saw on the map(s) on the Consolidated Goldfields website, and the grades published there and in the back of the Wakefield report.. A map is a key to estimating area of the deposit. This lack of information really affects the low grade portion of the deposit. The Wakefield report quoted something around 850,000 oz---750000 0z indicated and 106000 oz inferred based on a .01 oz/Ton cutoff (.346 G/Ton cutoff) with gold prices in the $372/oz range. Obviously, with higher gold prices, the cutoff grade will decrease....at Mesquite Mine for example, the current cufoff grades run .11 g/ton (oxide) to .22g/ton (non-oxide) ore. If we assumed Mesquite was a comparable deposit, we could goose the initial estimate to account for a new lower cutoff grade...ie 750000/(1-(.346-.22)=858000 oz and similarly recalculate the inferred from 106-121000 oz...giving us an indicated and inferred total of 979,000 oz....lets just call it a million oz of gold. This was calculated based on the area outlined on Fig7.3 in the Wakefield Report....which is basically about 1/3 of the known mineralized area. Assuming everything is about the same thickness in grade (probably true based on our recent results to the south)....I think our current campaign will probably prove up close to 3million oz by adding the area to the south (where we just finished drilling), and by adding the area to the west in the vicinity of High Grade Hill where the drills are currently active...This would be my "reasonable guess" for the low grade portion of the deposit only. This excludes additional gold oz contained in the high grade veins---with a lot seen in section 20 and also in the High Grade Hill Area. There are some great pics of swarms of these high grade veins outcropping on surface on the Consolidated Goldfields website. So at this point, my guess (assuming we see good results in the next batch of assays to the west) is approximately $3million ounces of gold which roughly equates to a takeover price of $3/share assuming $100/oz in the ground.....However as I have stated a number of times----to get maximum value for this deposit, management will have to raise money to fund a diamond drill program focussed on the high grade veins...This is where the deposit could easily grow from 3 million oz to 10 or even 20million oz. Indications are the veins are fairly common and we have a gold rich system. There is huge potential upside in my opinion to continuing on with the diamond drill program. To sell out at $4 bucks--or whatever the Tim Hortons number was, would be premature and a disservice to exisiting shareholders. I have confidence management will do the right thing....