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

To: Ed Ajootian who wrote (8388)	3/27/2006 1:51:35 AM
From: hubris33	Read Replies (2) \| Respond to of 78416

Ed, best I can tell about an 'industry standard' is to convert everything to gold equivalents! <g> I think the conversion is based on the ratio of gold to silver prices. It use to be 60:1 but obviously has dropped due to the run in Ag. Converting that 33M to Au puts it in the 600M oz range a modest find: a small 50M oz/ yr mine could have a 10 year life. I think the majors look for 2MM oz properties or better. For Example GFI works off of the "Rule of Twos": 2MM oz in reserves, production rates > 200M oz/yr, capital pay-back 2 years, cost of production < 1/2 commodity price. H3