Great Bear Resources Ltd. GTBAF

Whack of the napkin calculation of gold

[captainpooby1]

Ok, let’s low ball the amount of gold.

4km (4,000m) strike length x 500m width x 100m depth = 200,000,000 cubic meters of rock/gravel

1.68 tonnes per meter2 of gravel = 336,000,000 tonnes of gravel

lets lowball that at 1gram per tonne, so 336,000,000 grams of gold

divided by 31 grams per Troy ounce = 10,838,709 ounces of gold.

I just picked those numbers of length, width, and depth and concentration out of my butt and the available info from GBR. I intentionally used a low grade number and low depth number to try and find the possible small end of the scale of this strike. I didn’t add in any of the high grade zone numbers nor did I take the strike very far underground. I did kinda extrapolate the strike area to include everything in and around where the struck gold. 

You can can play with those numbers how you like and most ways only make it larger. If you imagine the strike is only 100m wide, divide by five. That’s still 2,000,000 ounces.

if you imagine it’s 200m deep, multiply by two. 20,000,000. 

Im not saying my numbers are correct. I am merely trying to give myself a grasp of what could possibly contained in the strike. YMMV

[Chad005]

I did similar math, but I’d use a higher specific gravity than 1.68 A lot of the gold is in a granite or marble type material which is closer to 2.7 Wet gravel is closer to 2.0 I’d guess closer to 2.5 average specific gravity. In the red lake area 100m is very low ball...  this could go 2600m deep in spots... Im thinking 250 m average would be pretty low ball still. 500m wide might be

[captainpooby1]

Your math can’t be wrong, it’s just another guess, like mine. I did see that 2.5 number in my research, but I also saw 1.68 so I used the low number. I was just try to lowball everything to see what came out. i think it’s safe to say there is a minimum of 10M ounces of gold there. If you want, Cut that in half and say 5M ounces, it’s still a huge amount of gold. 5M oz x $250oz / 50M shares gives

[captainpooby1]

Don’t forget you’re 2% royalty.  10,000,000 oz at 1200 an ounce (assume 300 cost per ounce Hemlow is 100) x .02 / 50M shares is 4.80 per share over the mines life. If you have 10,000 shares that’s 48k. just some more numbers to play with.

[Chad005]

If you check out the Barrick gold Corp website under operations Hemlo has produced 21 million ozs.  It has 1.9 proven and probable reserves, 1.6 million measured and indicated and 653k inferred. Cost of sales $890-$940 an oz All sustaining costs $1100-1200 an oz I’m  guessing after 30 years the costs are getting higher to the end plus there might be royalties as a factor?

[captainpooby1]

My bad about hemlo. Think of this. With 10M oz and a royalty of 4.80 per share over the life of the mine. At 5.30 a share, you are paying 50 cents a share. (US dollars.) THe same math for Canadian dollars.

[TheRealMoney]

This spinco thing is one way to protect yourself as innocent investors. Even godfather offer is on the table, there is still a chance that actual production is far bigger than reserve. The depth and wildness of lP really makes you feel that bank of Canada and federal reserve can make a bid of this deposit. It is no joke here, this monster can hold over 100 million oz, assume $5000/oz over 5 years,

[vikinginvest]

There is some amazing math calculations going on here. 2MM ounces...10MM...20MM...100MM ounces. Wow. I am assuming you guys are long on this one. Perhaps not so good at math. This is 4KM of strike length and growing with some very high grades, widths and unknown depths. Speculation is gradually becoming proven and probable. Flipping in the short term is getting more risky. Share price is firming

[ghostzapper]

I may end up being wrong but at 56 years of age I doubt I'll ever see anything quite like this again.  That's why I've got the dice clenched in my fist and I'm going to let 'er rip.  And no I'm not going to blow up doing so, just a fraction of the profits I made owning KL.  I doubt I'm alone in my view.

[captainpooby1]

The he thought of going all in has crossed my mind.

[macdtrader]

GBR and WM are 80% of my trading accounts.  60/40 GBR  .  I can/t bring myself to sell KL which I own in certificate form.  Own KL is like owning a bank,, except safer.

[Chad005]

Oops my math was wrong, extra zero 4000m x 300m x 250m x 2.5 specific gravity / 31grams = 24,193548.4 oz gold