Thanks Panamax for that article...it certainly helps understand why gold juniors are get crushed.

One part that I liked for ZEN was the following:

JK: The $1B outcome visualization would not make any sense unless there was a way to make it reflect the uncertainty of delivering that outcome. My rational speculation model applies an uncertainty ladder to nine stages of the exploration-development cycle. For example, at the grassroots stage the chance that a property will deliver what you think it ought to host is 0.5–1%. That chance has jumped to 2.5–5% by the time there is a discovery hole. Upon delivery of a preliminary economic study, the chance has jumped to a range of 10–25%. The exploration cycle is an information gathering/uncertainty reduction process that gradually restricts one's imagination until there is an operating mine.

The price one should be willing to pay at the current exploration stage should discount the reward you expect if the project makes it through all the stages intact as visualized. That discount is the uncertainty. So if you visualize a $1B outcome for a project with a discovery hole, the fair value would be $25–50M, or 2.5–5% of $1B. If you accept the uncertainty ladder as a valuation framework, you can use it to determine if the value implied by the market is above, below or within the discounted fair value range for your visualized outcome.

When looking at that information and looking back at my post about valuation, it confirms that I am pretty much on track. From that information above, we are past the discovery hole stage, especially with our purity results but before the PEA and hence, our valuation at this time should be somewhere between 5 and 10% of NPV. Now if you believe the NPV I put out, we should be somewhere between $2.75 and $5.50 which was my conclusion. Just nice to get more confirmation of my valuation model.

G.