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

To: loantech who wrote (48584)	9/4/2007 4:15:09 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 78419

In fact, you got it right. Metates has some similarities with Penasquito (large size, low grade). But it is much less vulnerable to lower base metal prices as the gold content is much higher. But Metates has also some similarities with Viceroy's Gualcamayo. Viceroy had 2M ounces of near 1 g/t gold when it was taken over and it reached a market valuation of $470 millions just before the takeover was announced. That is a high valuation. One of the reason was the low operating costs due to them using conveyors instead of a fleet of trucks. 6-9 months is not a long wait to find out how good the economics will be with the new parameters.