I'm still in the process of doing research on EGX. What I have found is very interesting, a mining which has substantially the same resources in gold and copper.
CGG.TO - China Gold International Resources inc.
They started exploration in 2005 and began production in 2007, gold and copper.
They have a resource of 8.1 million ounces of gold compared to EGX has 8.5 million ounces of gold.
CGG has 10.3 million pounds of copper, compared to 1.1 billion lbs for EGX .
They have 2 mining site, gold and copper, and a mill on each site..
They started production in 2007 with 22,000 oz gold/year and now 200,000 ounces in 2014. They will produce 260,000 ounces by 2015 with a mill of 2000 tons per hour of ore processing, as I planned for EGX .
Grade:
262 million tonnes of ore at 0.60 g/t gold, using 0.28 g/t as cut-off.
EGX = 318,850,000 tonnes of ore at 0.62 g/t, using 0.25 g/t as the threshold for non- profitability.
In 2005, the share was trading at $ 0.30 on the TSX prior to production. When producing in 2007, the share rose to $3.10 in 2010 and the dhare touched $6.20. Currently the SP is at $3.56.
Do you think that the PEA at the end of march will be positive ? IMO, YES!
When I look at mining as CGG has fewer resources than EGX and I compare both together, I think that EGX has a great potential, especially that gold is now in uptrend phase ...
If you are an investor in the long term, less than 5 years, EGX will make you proud to have purchased their shares.