Potential of 9.25 million oz.
The following is part of the posted coverage on Insider Report last week:
"Why would the Gold Newsletter come out with an update so soon? Well, basically James Blanchard wants to tell his readers "I told you so", but more importantly, there has been a material change to the reserve as per the news release on the Aksu mine site released February 20, 1997. The release reported an increase of 425,000 ounces grading 8.8 grams on less than 10% tested area. This site has a potential reserve of 4.25 million ounces."
So here is my analysis:
Proven reserve 3.5 m oz.
Potential reserve based on Russian data 1.5 m oz.
Aksu mine site proven reserve .4 m oz.
Aksu potential reserve (4,250,000-.425,000m) 3.8 m oz.
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Total 9.2 million oz.
So, what's the math here:
9.2 million oz @ $125=1,150,000,000 or 1.1 billion.
Now, let's discount the price per oz. to say $50/oz
9.2 million oz @ $50 = $460,000,000
Therefore, $460m and shares outstanding 32 million = $14.37 per share.
This stock will not stay at $1.10 because it has the gold, production, cash on hand and large acres to do more exploration. If the stock doesn't move much higher soon, the big mining companies will be looking at a takeover at this level.
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