RE:Heavy Doors Turn On Small HingesMack I agree. Eric Sprott's interest in SPA is as a well located, large deposit. Larry tried to finesse the project as a small scale venture to jack up the NPV and IRR and lower the capex based on $1,450 gold. SPA's real attraction is as bulk, low grade resource, situated in a friendly jurisdiction and in a good location in BC. And with the gold price at $1,860 and silver strong, with no sign of long term pull back, the cut off grade will be alot lower. The gold has probably been found already, it hasn't been counted yet.
SPA will have $24m Can in the treasury to hunt for more gold, design the mine, and bring it to a mining decision. Sprott says $100-150 US per oz. Given the size and location the per oz value must be near the top end. But yes, assuming $150+ Can x 10m oz with 385m shares FD gives about $4ps+. That would give a market cap of $1.54 billion Can. Even if you gave it a 50% haircut we are still at $2 ps.