1million ounces!!!! Whow, Whow!!Today, Acadian Gold announced the Beaver Dam gold resources estimate.Previously ADA has announced the gold resources at the Forest Hill and Tangier property (all three properties are located within short-haul trucking distance from each other in the province of Nova Scotia). The total resource calculation in these three properties stands now at 744,843 inferred troy ounces of gold and 256,266 indicated and measured troy ounces of gold for a total gold resource of 1,001,109 oz. of gold.
Just in case you did not get the message, that is a gold resource of more than 1 million ounces of gold!!!
Management over the last two weeks has visited and made presentations to potential investors in Halifax, Montreal, Toronto, Winnipeg, Calgary, Vancouver and Victoria. This week, they will be making presentations in London-U.K., Paris, France, Zurich and Geneva Switzerland for the purpose of raising slightly more than $1 million. The financing will be done in the form of a private placement at 18 cents per unit and if you are qualified to participate (it only takes money) do not hesitate to call the company and they will be happy to refer you to a participating broker.
At the current price of 18 cents, the current market cap is approx. $6.5 million (that is expressed in loonies). The gold resource of 1 million oz is therefore being priced in the market at $6.5 per oz or if we put it in US Dollars at US$5.42 per troy oz. That is cheap by any standard. Companies that are in process of going into production sell at US$50 per oz and those that are in production sell as high as US$120 per oz.
Let us assume that you do not believe any of the numbers but you are prepared to 'take a punt' and you are willing to go for US20 per oz. Well at 50 million shares outstanding up from 36.5 that works out to 48 Canadian cents per share which is well up from the current price of 18 cents.
If you are patient, there is more news to come by the end of January 2005 when the ADA will come up with the resource estimate at Goldenville (the message gets a bit boring, this property is also in Nova Scotia).
We almost forgot to mention: All mentioned properties have a lot of additional resource potential as potential extends at length and depth.It only takes money to drill and prove it up.
All resource estimates are Canadian Standard 43-101 compliant. Just as an example the 'reserve potential' at Forest Hill alone would be at least 3 million ounces (43-101 compliant it is 550,000 oz), if Acadian used the same estimating technique (not Australian or Canadian Standard compliant) as Bendigo has used for their property in Australia-they call it 'resource potential' and estimate that potential at 13 milion ounces but are going into production with a US$85 million production financing (the money was raised by Canadian Imperial Bank of Canada World Markets Division)based on proven and probable reserves of 220,000 oz!!
Maldoror, your faithful servant and frequent sinner.