Thanks for your response. (But apparently he looks forward to proferring his services for a "cut" (finder's fee) in return.)
With reference to GMD News Release #187 dated February 12th 1998:
Initially, I found the news release somewhat puzzling. But, after I sorted out the figures,
I believe I am beginning to understand it. Comments, anyone?
(a) Measured and Indicated Resource:-
Ormsby Zone: 2,608,000 tons @ 0.108 opt = 281,664 oz. gold
Discovery Zone: 243,000 tons @ 0.57 opt = 138,150 oz. gold
Total : 2,851,000 tons @ 0.147 opt = 420,174 oz (close to 421,000 oz)
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(b) Inferred Resource:-
Ormsby Zone: 1,250,000 tons @ 0.10 opt = 125,000 oz. gold
Discovery Zone 1,329,299 tons @ 0.80 opt = 1,063,439 oz. gold
Total: 2,579,299 tons @ 0.46 opt = 1,188,439 oz. gold (~1,185,000 oz) *******************************************************************
On combining (a) and (b), we get: Measured and Indicated oz. of gold = 420,174 oz.
Inferred oz. of gold = 1,188,439 oz.
Total oz. of gold = 1,608,613 oz.
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I was given to understand that, to date, GMD has explored only about 20% of its gold properties. If it is assumed that further explorations will prove up a total of, say, 3 million oz. gold, then at today's pog (US$300/oz) and assuming a total of 17 million shares are out, a GMD share should be worth about
20% of (US$300 x 3,000,000)/17,000,000) = US$10.59 (~C$15/share).
At pog of US$400/oz, the share price rises to US$14.12 (~C$20/share).
The above calculation does not take into account the potential of the Royce (diamondiferous?) property. |
