Gold and Silver Juniors, Mid-tiers and Producers 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 : Gold and Silver Juniors, Mid-tiers and Producers

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: heinz44	10/26/2007 2:47:28 PM
	Read Replies (1) of 78413

This AM Galway Resources once again demonstrates the benefit of diversification and immediacy. The company has three properties and the potential for multiple metals. Indian Springs has an historical resource of tungsten. Lone Mountains is situated in the rich copper/ zinc belt of Silver City, New Mexico where porphyries such as Chino have yielded their metals. Victorio remains the company’s flagship property even more so this AM. Victorio contains a significant 43-101 compliant resource of molybdenum and tungsten. Industry forecasts are now beginning to suggest that molybdenum has a new and very bright future. This AM Galway has reported that, based on further drilling and analysis, the Victorio project also has a brighter future. After incorporating 10,000 feet of new drilling (into Gulf’s historical 165,000 feet) the company now believes that the deposit will yield new tonnage and significantly higher poundage of moly. At a cutoff rate of $40 per pound and using $15 per pound moly, the new tonnage of 48 million yields 128 million pounds of 43-101 moly in indicated and inferred status (66% indicated). The deposit is open in several directions. The tungsten resource grows to 117 million pounds at $8 per pound tungsten. Tungsten now sells for $12.50 per pound and molybdenum sells for $32.50 per pound. I estimate that such a resource on one of the company’s three properties is worth at least $2.10 per share valued in situ at 5% of the historical average pricing used by the market. Taking 5% of the in situ value (common for base metals) ands using $15 moly and $8 tungsten, the in situ value of Victorio alone is now $143 million or $2.10 per fully diluted share. At current market prices the Victorio assets are worth $4.15 per fully diluted Galway share. The company has 67,607,799 shares outstanding fully diluted and is well financed. Please consider the following facts: 1) The above values reflect only Victorio and do not include Indian Springs tungsten resources or any future discoveries at Lone Mountain 2) Both molybdenum and tungsten are likely to spike higher in price as China restricts its exports of these two critical infrastructure metals, in my opinion. 3) There is a 21 million ton high grade ore block at Victorio and the mining technique will be underground. 4) This is a mature Discovery investment opportunity. Victorio will be a mine, in my opinion, within 3 years. 5) Off-take agreements for the tungsten are possible reducing the risk from further dilution or debt financing. 6) The Victorio deposit could increase as it is open in some directions. 7) The stock seems cheap at C$.95 per share given the known resources at Victorio and Indian Springs.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next