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Bullboard - Stock Discussion Forum Touchstone Gold Limited T.TCH

TSX:TCH - Post Discussion

Touchstone Gold Limited > TCH's Initial Resource Should Be About ONE MILLION OUNCES!
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Post by Hedgehog100 on Mar 04, 2014 10:37am

TCH's Initial Resource Should Be About ONE MILLION OUNCES!

Check out Touchstone Gold's July 2013 corporate presentation, entitled:
"Building a Low-Cost High-Grade Gold Exploration and Development Company in Colombia"

Some extracts from page three -

"• Company with attractive valuation and rapid growth profile - LAND PACKAGE INCREASED OVER 500% IN SIZE since IPO on AIM (June 2011)

• INITIAL METALLURGICAL RESULTS ACHIEVED 87.9-95% GOLD RECOVERIES

• RECENT DRILL RESULTS: 28.25m at 8.75g/t Au (LPD–1279), 16.8m at 8.7g/t Au (LPD–1286), 22.25m at 5.84g/t Au (LDP–1159) and 8.4m at 14.0g/t Au (LPD–1124)"

https://www.touchstonegold.com/s/Presentations.asp


Page three also features a quite stunning photograph of visible gold in a rock sample from Touchstone’s Segovia Gold Project.


And the initial resource should be about ONE MILLION OUNCES!

Yes, "Shares" magazine believes it will be about a million ounces:

"If we assume Touchstone achieves one million ounces at its maiden resource, as had been expected last year before the delays, and use a crude $35 per ounce valuation historically placed on the lowest category of resource ounces by analysts, that would imply a $35 million (£22 million) market valuation. Although this is only 25% higher than its market cap at the time of writing, there is significant exploration upside since only 5% of the property has been drilled to date. Touchstone believes Segovia could eventually become a multi-million ounce gold deposit which implies multiple gains on its market valuation."
https://www.sharesmagazine.co.uk/articles/touchstone-ready-to-drill-larger-ground#.UxXyOslFDcs


Of course, 'not all ounces are created equal', and the "Shares" valuation looks conservative given the low-cost, near-surface, and high-grade nature of Touchstone's Gold.


I believe that Touchstone Gold has already completed enough drilling to produce a JORC resource estimate.

And my betting is that one of the first jobs of Touchstone's new COO Franz Forrester will be to get on with publishing the company's maiden JORC resource estimate - which should have a quite explosive effect on the company's valuation.
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