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

To: baystock who wrote (24389)	11/6/2006 1:51:03 AM
From: AuBug	Read Replies (2) \| Respond to of 78408

Can you elaborate on the Geomaque Resources experience? I'm not familiar with it. I did a bit of googling but I doubt I'd be able to come up with the claimed versus actual production costs that you probably already know from your experience. "Mr. John Paterson, Director, is a professional mining engineer and President of Aurogin Resources Ltd and is also a director of Plato Gold Corp. and Sparton Resources Inc. For ten years, Mr. Paterson was President of Geomaque Explorations Ltd., during which time the company placed two gold mines into production. As an independent consultant and an associate of Roscoe Postle Associates, Mr. Paterson has been involved in feasibility studies, economic evaluations, and project management on numerous domestic and international mining projects. As president of Geomaque, he financed, developed, and operated the San Francisco Mine in Sonora, Mexico. This open pit heap leach mine, located in the Sonoran desert produced 60,000 oz of gold per year for 5 years; double the amount of gold estimated in the original feasibility study. Paterson also financed, developed, and operated the Vueltas del Rio Mine in Honduras. This operation, also an open pit heap leach mine recovers 30,000 oz of gold per year from lateritic material operating in a tropical climate." mcvicar.ca It doesn't sound so bad here but they probably gilded the lilly. "That is either a bad joke or a fraud for AUQ to assert that a micro producer will get the same valuation as an intermediate producer. Who in their right mind would pay US$160 million for just 600,000 oz of recoverable gold ?" Someone that thought it was worth 600,000 oz x $400/oz = $240 million and that they actually have assays showing they have almost 1 million ounces and that the deposit is close to the surface and that it's growing as they continue to drill. The mine is open and time will tell. It beats the hell out of a pure drill play gamble. My concern is the low grade but then the grade in the Carlin Trend isn't very high either. What is your non-fraudlent non-humorous way to value a junior producer?