CJR...I must admit that I cannot remember where the 3M ounce figure comes from and that smaller take overs have certainly happened in the past. However, I still believe 3M ounces to be the minimum that most big gold producers would need to see to do a take over. The reasons they need so much is a combination of the length of time a project goes from exploration to production and the high capital expenditures. If we had a major next door with a mill already who needed more ore, that would be a factor that would decrease that 3M figure. We do not have that luxury at this time.

Here is an excerpt from this article:

http://www.dailybuyselladviser.com/news/blank/gold-stocks838-1.html

Size is the first thing that matters. “Majors produce millions of ounces of gold per year, and hence need to book millions of ounces of new ounces per year to avoid shrinking,” says Mr. Dashkov.

Any major 10 million ounce deposit is a natural candidate for a takeover, and a new discovery of around 5 million ounces with favourable economics is a contender. Smaller multi-million ounce deposits must have what this writer calls “robust economics.”

Technical risk is almost as important. “Grade is king here,” says Mr. Dashkov. “Ore of a high enough quality will pay for even the most expensive processing and will even justify significant political risk.” Other variables taken into account are low strip ratios, proximity to existing infrastructure and high recovery rates of metal from ore.

The good news for us is we have 3 of the 6 requirements in the list already: Political risk, infrastructure and high recovery rates. The 3 other factors are size ie how many ounces, robust economics ans strip ratios.

We can add ounces with our drilling. The economics and strip ratios will be calculated during the PEA but I have every reason to believe we will have a positive outcome. Having 3 of 6 attributes already is very good and one of the reasons I am invested here.

I will keep doing some more research on take overs and look for historical cases. If anyone finds take overs of interest, it would be great to post them here.

As for the $59 figure, that is strictly an average from all the juniors in the list from stockhouse. I agree that this number is too low for us and that is why I used $80 in my discussion. I would be happy to revise this higher if someone has facts that support this.

Glorieux