Jilbey Exploration JLB-MSE Message Board

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Gold/Mining/Energy : Jilbey Exploration JLB-MSE

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From: Handshake™	6/21/2005 10:15:21 AM
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Interesting post from another website... SUBJECT: RE: Does any one hnow the impact of this Posted By: alessard Post Time: 6/20/05 16:12 « Previous Message Next Message » Estimated purchase cost is $25M for the remaining 71% of the company Taparko is scheduled to come on stream in early 2006. Current reserves are about 1 million ounces owned 90% by HRG and 10% by JLB. The JLB portion has a valuation of about $9 million. Recent drilling indicates excellent potential for additional reserves to be added. JLB has other promising claims adjacent to Taparko that show potential and the Kindo claims north of Bissa that have had excellent showings, but clearly the object here is Bissa. Bissa (like the rest of JLB's claims) is within trucking distance to Taparko. Means that they can use currently being built mine processing capability. Saves huge capital outlays and extends overall mine life. Excellent business proposition. Bissa's current reserves sit at about 150,000 ounces (@$400). (my guess - should have a valuation of about $15 Million) Test drilling is indicating that there is a lot more gold in them rocks. Expect the reserve total to dramatically increase. Bottom line is that for $25M in shares they get the remaining 71% ownership (and control over) current reserves of 250,000 (worth about $25M) plus what appears to be some very significant potential for further reserve growth. All this requires almost only minimal capital for development as the required infrastructure will be in place. If the currently exploration does not yield anything (highly unlikely) then sshareholders of both companies do good with the transaction. If the exploration pans out (as everyone expects) that will be gravy on top of the good deal. As a side note, this should increase liquidity and result in greater investor interest. Analyst have targets of $2 (BMO) to $3 (CIBC). I see this merger as accreditive to these targets. As the reserves start going up, and gold prices increase, I expect to see $5 happening in the future

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