Before we get too carried away with estimates, which are a valid way of evaluating a property and hence a stock, some points should be made.
First, and not the least, there is no current reserve estimate released, so we're speculating here (not investing). I believe the numbers may justify, or maybe surpass your expectations, but that too is just an educated guess.
Second, mines are designed to move volumes, and sometimes tonnes of rock (not ounces of gold). The cost per ounce is a function of cost per tonne (which can be engineered) and grade (which is a function of the deposit and cannot be engineered with ease).
Third, the results released to date reveal lots of moderate to low-grade intercepts, and quite a few high-grade intercepts. This should tell people that there is some latitude in deciding what the grade of the deposit will be (by varying the cut-offs, changing the mine plan, etc.).
Its healthy to view all of these attributes of the deposit/company, and more. I don't think one should get too carried away or too detailed with cost/ounce or market values yet. The direction the company is going, and the development of the property is paramount. The current price of gold affects the attitude of speculators, not the longer term economics of the project. GMD will not be selling any gold into today's market.
Dave |
