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Bullboard - Stock Discussion Forum Snowline Gold Corp V.SGD

Alternate Symbol(s):  SNWGF

Snowline Gold Corp. is a Canada-based gold exploration company. The Company operates an eight-project portfolio covering approximately 333,000 hectares (ha). The Company is engaged in exploring its flagship project consisting of approximately 94,000 ha Rogue and Einarson gold projects in the highly prospective, underexplored Selwyn Basin. The Company’s project portfolio includes Einarson, Rogue... see more

TSXV:SGD - Post Discussion

Snowline Gold Corp > My Conservative Projection....
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Post by tony1969 on Oct 18, 2024 6:50pm

My Conservative Projection....

MUST EFFING READ! We are getting closer and closer to that psychological benchmark of C$1 BILLION in market cap ladies and the random gentlemen that lurk here. Ok. Now I will be serious. This is my conservative/informed/amateur projection of how the main parts of our Valley PEA may look. Yes I am bypassing our 2nd MRE. Here we go: Considering Valley will likely have 9 to 11 million ounces (my semi informed guess) I will use 7.5 million ounces for my projections of LOM production. Now considering that those who know more than us from Sprott have given the first five years of production (have to be using the starter pit/higher grade) an AISC of $542 for year one and $440 for years 2-5 I will use double that or $880 for my LOM amateur projection. Sprott projects almost 300k ounces of production for year one and it looks like right around 570k ounces for again years 2-5. I will use 500k ounce of production per year. I am going to use a 15 year LOM (remember this is only for near surface OP gold at Valley) and a again my conservative 7.5m ounces mined at my $880 AISC for my projections. Now comes a VERY important factor in the formula. The POG. I will use a very conservative over $500 under spot price of $2200 US gold for my back of the back of the napkin study. Let's crunch some CONSERVATIVE numbers for ONLY (not including likely more ounces of very viable OP ounces and zero for ounces at depth which have yet to be determined at Valley) Valley near surface OP. Here we go. $2200 US gold minus $880 AISC = $1320 US. Now we will multiply those $1320 by 500k ounces. That gives us a YEARLY figure of $660m US. Now multiply $660m X 15 YEARS LOM and we get $9.9 BILLION US. Now go back and consider how conservative I have been with EACH and EVERY variable here. The AISC is tricky as MANY factors can influence it but man if gold can steadily trade (here comes another conservative projection) between $2000 and $2500 US (being that it is over $2700 now) in the next few years then these figures are VERY achievable. In conclusion. I am only using 7.5m ounces of near surface Valley gold that could EASILY throw off about $10 BILLION in cash over 15 years without factoring in likely more Valley OP gold and ZERO for all other 30 plus exploration targets and ZERO for anything at depth at Valley. I am just thinking of all scenarios and being very conservative on each. How much would you pay for this? Our public markets (I say markets because this thing seems to trade on several "consolidated volume" markets) says it is worth about $681m US today. I say is is worth at least 3X that using my basic conservative valuation calculations above. OK I'm done. Had to refill my drink twice while posting this. I swear I think more clearly this way (more relaxed) but my wife differs. Comments? Thumbs up for my sad ego? Going on a Caribbean cruise next week (I live in Miami so it's no big deal) gifted by my company for my now 13 years of employment. I will keep in touch. Let's rip higher next week. You never know what that drill bit will say...STRONG BUY on SGD...
 
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Comment by tony1969 on Oct 18, 2024 7:59pm
Full disclosure: Now long 77,980 shares along with my dad at an average of $3.171 US. NO hype. Just my conservative opinion....
 
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Comment by tony1969 on Oct 18, 2024 8:31pm
I will now respond to myelf after seeing that like 40 have seen my post. You make lots of very conservative/factual points Tony. This is valued at $681m US when after all is said and done and it should be valued at at least 3X where the $4.30 we trade at today.....
Comment by Galaxym31 on Oct 19, 2024 11:52am
What do you think about Sitka ?
 
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Comment by Galaxym31 on Oct 19, 2024 1:13pm
Great read . Currently my short term bets are Goliath , 35 000 meters of assays pending looking at a quick triple and the other is another Yukon gold project Sitka 680 meter hole pending plus ongoing drilling and hoping for a 4x .
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