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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (7531)	3/3/2006 6:33:14 PM
From: SwampDogg	Respond to of 78407

Part of the attraction may be all the cash on the BS. Almost 1/2 the market cap.

To: ralfph who wrote (7531)	3/3/2006 6:43:42 PM
From: loantech	Respond to of 78407

Then why is it such a good deal for CKG? Because prices for gold and silver MIGHT go up?

To: ralfph who wrote (7531)	3/3/2006 6:44:46 PM
From: Zincman	Read Replies (1) \| Respond to of 78407

This deals overall success looks like it is heavily dependent on the POG continuing its bull climb...Should it reverse, CKG will respond accordingly, more so than before. ZM

To: ralfph who wrote (7531)	3/3/2006 8:29:18 PM
From: Nevada9999	Respond to of 78407

The PR says Metates has 492 million tonnes at a grade of 0.74 g/t gold and 18.2 g/t silver. 0.74 g/t is 0.0216 opt or $11.87/ton for the gold. 18.2 g/t is 0.531 opt or $5.31/ton for the silver. Assuming this is all oxide ore, heap leach recovery might be in the ballpark of 90% for gold and 75% for silver (optimistically). We are talking $14-15 rock, roughly. This seems to be a bet on much higher gold prices by both sides. CKG gets the AAU resources cheap now. If gold goes over $850 AAU shareholders at the time of the deal get a right to a share of CKG for $1. Now who wants to calculate CKG share price at $850 gold? IMO, Talapoosa is too small to be of interest to a major even at $850 gold. Someone will probably be interested, though. Economics are similar, slightly higher gold grade and lower silver grade. Now, someone check my math, it is sometimes questionable.