Peruvian Gold Ltd. PVO Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Peruvian Gold Ltd. PVO

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Brian Warner who wrote (354)	8/21/1997 9:39:00 PM
From: Jon Warren	of 892

Brian, Ollachea Well the average looks like 2.5g/t which is lower than the 6.2 g/t they had before. But trenching results are not that accurate when it comes to evaluating the property. It just gives you an idea whether or not there looks to be sufficient mineralization to try a more expensive drill program. Seeing as they are about to spend some money building a road and drilling in this area they must believe they are onto something unlike El Encanto where they decided it wasn't worth it. Agua Verda They found between two and five million tons of copper. I think high grade copper is around $2168/ton. So let's say we take a worst case scenario of 2M tons then they have a 2.168 Billion dollar copper deposit. The thing that I do not know is how much it will cost to extract the copper. Taxes, mining equipment, administration etc. will chop that gross figure down quite a bit. Even if we take an extraction charge of $2100/ton and ignoring the money they have in the bank, I would think that would give us a figure something like this: Copper * (Price of copper - cost of extraction of copper) / shares = Price/share 2M tons * ($2168/ton - $2100) / 14M shares = $4.80/Share My figures might be wrong here so anyone please correct me if you see any mistakes or provide your own opinion. Bottom line is they went looking for gold and copper and have found some. The market is trading the stock at about the value of the capital they have in the bank. $11M / 14M shares = $0.78 This bearish market seems to be ignoring the fact that they have all these properties that have some great potential. JW

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next