Snapshot, Guyana Goldfields (GUY.T). Warning: taken in dim light <g>
- Apr. 06 - $28,000,0000 cash
- $ 1,400,000 debt
- 56,491, 318 shares, fully diluted
-Properties
-Aurora, Guyana
They don't give much in the way of geology interpretation on the web site, so I am guessing on deposit type: looks like intrusive hosted/porphyry(?) style at Rory's Knoll and shear zone hosted veins at Aleck Hill. I thought there was more in the way of drill indicated resource on this property, but there is nothing on the website as far as I can see.
*Rory's Knoll is of very limited horizontal extent; it has a near vertical oriented pipe-like shape that limits the amount of the body that could be mined by open pit. I don't know if the deeper parts of the pipe carry enough grade to block cave underground. (intercepts of 1.5 to 5 g/t Au).
*Limited drilling and outcrop sampling at Aleck Hill does not appear to have defined any significant coherent zones to date. Data presented for this prospect on the website is very limited.
-Peters, Guyana. Non 43-101 estimate of 600,000 ozs Au in oxide zones. Application for mining permit, 1000 tpd heap leach operation. More resource delineation work needed (mostly drilling)
-Coppermines, Nunavut. Ni-Cu-PGM exploration targets, JV'd with Coronation Minerals. Grass roots.
After looking at this one in more detail I do not call this one an obvious takeover target, but it is certainly very interesting geologically. assigning a highly speculative 1,000,000 ounce resource between Peters and Aurora projects, using $75/oz in situ value gives a share value of 1.33 using fully diluted scenario. Adding in $20,000,000 cash gives 1.68/share. So in fact, it looks way overvalued to me. Lots of future exploration success priced in (those betting on this might be right!) Probably others can give more concrete reasons for present share price.
Thanks, I'm glad you put me through that exercise, I let myself buy into the hype without much research. |
