Size of the known deposit, exploration potential and the valuation placed on the same are the key drivers of our price.

Lets pick three deposit levels that have been thrown out as the ultimate size of our resource.

4.4 million
7 million
10 million

Fully diluted number of shares 117 million.


As an exploration company

The number that has been thrown around for resource valuation is 100 dollars an ounce.

4.4 million X 100 = 440,000,000 / 117,000,000 = 3.76 per share

7 million X 100 = 700,000,000 / 117,000,000 = 5.98 per share

10 million X 100 = 1 billion / 117,000,000 = 8.54 per share


As a development company with a 43-101 ( 1/3 resource 1/3 inferred 1/3 potential) & a pre-feasibility study
( We will have both of these later this year.)

The value of the in ground resource will go up to 150/175/200 per ounce?? So 175 for this exercise.

4.4 million X 175 = 770,000,000 / 117,000,000 = 6.58 per share

7 million X 175 = 1,225,000,000 / 117,000,000 = 10.47 per share

10 million X 175 = 1,750,000,000 / 117,000,000 = 14.95 per share

As a near term producer with a bankable feasibility study & 43-101 (1/2 resource 1/4 inferred 1/4 potential)
(This may be two years away)

The value in ground goes to 300 per ounce.

We need to raise cash for drilling and operations and to build a mill.

So lets say we need $200 million and we raise it at 3.76 per share.

200,000,000 / 3.76 = 53191489 new shares( 53,200,000 rounding up)

117,000,000 + 53,200.000 = 170,200,000 shares

4.4 million X 300 = 1,320,000,000 / 170,000,000 = 7.76 per share

7 million X 300 = 2,100,000,000 / 170,000,000 = 12.35 per share

10 million X 300 3,000,000,000 / 170,000,000 = 17.64 per share


As a producer
(This could be 3-4 years away)

500 dollars per ounce in the ground.

I think gold will climb at 20% a year. In 4 years the price could be 2,800.

We will use 2000 as a very conservative estimate.

200,000 ounces per year production (gold at 2000 per ounce) cost to mine 450 per ounce

profit of 1550 per ounce

200,000 X 1550 = 310,000,000 / 170,000,000 shares = 1.82 per share.
Net Present value discounted at 1.82 @ 10% = 15.20 (per share NPV ) X .50 (Uncertainty) = 7.60 per share


4.4 million X 500 = 2,200,000,000 / 170,000,000 shares = 12.94 (in ground gold value) + 7.60 (NPV) = 20.54

7 million X 500 = 3,500,000,000 / 170,000,000 shares = 20.58 + 7.60 = 28.18

10 million X 500 = 5,000,000,000 / 170,000,000 shares = 29.41 + 7.60= 37.01