You can definately use it. Many people use the insitu method to estimate a possible share price. Also, this method is normally used based on a buyout situation therefore, it likely won't be realized until a lot closer to production. All I was eluding to was that the 20% that you use is a variable. The percentage greatly depends on what has been done on the site, where the site is, how close the company is to production, etc.. etc..

With 2M ounces we won't get even close to $4. Many of the people(institutions) invested in EVG are because they think that we will hit 10 million+ ounces of easily mined gold.

Look at a company like CMM.V. Yes it is an underground mine and they have a lot of debt but, they are very close to putting online 70-80k ounces of production per year. They have a NI 43-101 of around 6 million ounces and a market cap of $50M. This is a company that I'd be using something closer to 20% on. (EVG's MC is around $100M but, I think that is mostly because there is a chance we are going to hit 10 million+ ounces that will be easily mined)

Disclosure: I am fairly heavily invested in CMM and EVG long term.

Pivotal