RE: RE: RE: RE: RE: Social Media King Just need to correct this last post no offense at all Kensin.
Ventana was bought out for $1.5 billion in Colombia by Eike Batista for 3.5 Moz of gold so roughly $400 / oz as there was also 19 Moz of silver. The grade was quite a bit higher than Canaco's at over 5 g/t au. The companies are not that comparable but I feel TXG is a bit more comparable to Canaco even though it is quite a bit further along the development stage with a Feasability Study due for this summer.
TXG currently has 3.6 Moz of gold @ 3.2 g/t au - open pit in Mexico. They are upgrading this to 5 Moz... go to TXG's website and look at the drill results and other than a couple glory holes both deposit sizes are similar (prior to the past year's drilling for TXG and based on their first estimate) and the grades over intervals are also similar. TXG has mainly a mid-grade deposit at 2 g/t au but has several pockets of higher grade mineralization. The main difference is obviously Mexico vs. Tanzania and 3.2 g/t au vs. 2.5 g/t au likely for Canaco and the distance along the development stage but TXG is currently fetching a $775 million enterprise value or over $150 / oz based on their upcoming estimate of 5 Moz. These are not apple to apple comparisons so take it for what it's worth but both deposits are similar in grade and characteristics (near-surface, open to depth and along strike, mainly high grade with lower grade areas).
If Canaco were to show the market a near surface deposit with upwards of 2 Moz of gold I believe the ounces would be worth $75 - $100 / oz given how far along we are in development. At $87.50 / oz average Canaco would fetch a value of $193 M dollars based on the ounces alone + $110 M in cash which gives you $303 million total market capitalization.
$303 million dollars / 213 M shares = $1.42 / share.
Just a 2.2 Moz estimate should provide 30% gains by 43-101 release and this is conservative given it's only based on 2.2 Moz and I feel the estimate should show 2.4 + Moz @ 2.5 g/t au or higher.
Roughly 270 holes will be on the 43-101 it looks like and this is the latest geological model:
https://www.corebox.net/properties/magambazi
With the plans outlined here, we are embarking on the most ambitious growth program in the Company's history. As we advance the Magambazi discovery area toward an initial resource estimate and PEA this year, the Company is transforming from grass roots exploration into advanced exploration and development. At the same time, we are embarking on a regional diamond drill program aimed at keeping the pipeline full with earlier stage opportunities. We have the financial strength to advance the project for long-term value creation."
On completion of delineation drilling at Magambazi, the focus of the Handeni exploration program will shift toward growth and testing of promising targets peripheral to Magambazi, nearby and along the regional mineralized trend.
Currently, two diamond drill rigs are exploring two high priority targets in the immediate vicinity of Magambazi - Kuta and the Magambazi North Extension - which have been defined by the presence artisanal workings and anomalous geochemical and geophysical responses. Testing of the Magambazi North Extension is immediately north and on strike of the Magambazi mineralized zone.
Further north and northwest, within six kilometres the Magambazi discovery, preliminary exploration work by Canaco, including surface sampling and RC drilling, indicates additional potential for exploration success. One diamond drill rig is already operating at Majiri and in the weeks ahead, diamond drill testing will follow up promising RC results at several high priority regional targets including Kwadijava and Bahati.
The RC rig is presently drilling at Bahati and will continue to test preliminary regional targets. A second RC rig is being sourced to expedite this work.