...or rather, what does MAG's portion of the Valdecañas vein on the Juanicipio property contain? This completely ignores the Juanicipio, Footwall, and the new deep veins discovered on the same property. It also completely ignores the value of the Batopilas and Cinco de Mayo properties.

In other words, this an estimate of a significant portion of MAG's Net Asset Value, but hardly all of it. In fact, since the mineralization remains open at depth and along strike, there is likely significantly more silver, gold, lead and zinc in the self-same Valdecañas vein than is indicated here.

I've inserted into my model the data from drill results from Sep 07 to the present. Interestingly enough, the average grades have decreased somewhat, and therefore the overall resource estimate, even as the strike length improved to approximately 1,500 m. It hardly matters - there are still quite literally tons of silver there waiting to be mined in what has proved to be the greatest silver find in more than a century. And besides, I use an EXTREMELY simple model to estimate the value of the resource in the ground: Length x width x height x specific gravity x grade = contained ounces

Multiply that by the price per ounce = value of contained metal ==> net value; multiply by 44% ==> MAG's share / (shares outstanding) ==> Net Asset Value per Share

So, mushing all this together in my Excel spreasheet o-matic, we now find that this one vein, Valdecañas, on this one property (Juanicipio, which, as stated previously, hosts other veins that have yielded very positive results), contains approximately:

523,506,528 oz of Silver, 1,267,592 oz of Gold, 1,095,574,336 lbs of Lead, and 1,441,843,486 lbs of Zinc

At today's severely depressed metal prices, that is a resource worth approximately US$7.1B, of which MAG's share is approximately US$3.1B.

If you're thinking these numbers seem awfully low compared to previous estimates, you have to remember that the spot price of silver, lead and zinc, which compose the greatest part of the value of this mine, have all plummeted in value over the past three or four months. Zinc and lead are approximately 1/3 of what they were; silver's at about half.

With approximately 52.5M shares outstanding, this results in a gross NAV of ~US$59/share or ~CD$76/share. This, for one vein on one property. This DOES NOT INCLUDE the Juanicipio, Footwall, etc. veins on the same property, let alone ANY of their other properties ( Batopilas, Cinco de Mayo, e.g.), most of which have returned some rather nice results themselves.

This is one hell of a company, and a steal at $4/share, but then Fresnillo knows that. After all, they bought 20% of the company at $5/share, and were getting more than a bargain then.