Fantom,

The PRB and TRR situations are sort of similar. Borden Lake and Cote Lake are in the stage where both companies are doing in-fill drilling to conver the inferred to indicated. Using mkt caps a of today.

- TRR Cote Lake: 6.8 M oz total for $528M Mkt Cap (2.98 x 177M OS) -> $78/oz (open pit?)

- LSG: 6.5Mz and $565M Mkt Cap -> $86/oz (underground mining).

- PRB Borden (gold main zone alone): 4.2M oz and Mkt Cap $136M -> $32/oz (open-pitable)

So, even without the possible extension of the main zone and additional deposit from the nose, and of course we ignore all other properties, chromite, JV with LSG, Goldex roalty, etc...

The market evaluation of PRB is almost 2.5 x below that of TRR, and 2.7 x below LSG.

Granting that LSG is an operating mine (it has the gold bars to show), but it's an underground operation compared to open-pitable for PRB. This means PRB has an edge over LSG in future valuation, since the cost to get the in-situ stuff up to the surface would be cheaper. If TRR SP gaps up on Monday, due to the potential of converting the inferred to indicated, then the valuation of TRR would surge ahead to something like 2.75 (rather than 2.5, assuming a jump of 10% on Monday).

A factor of 2.75 or so would result in a PRB SP at 2.75 x $2.15/s = about $6.00/s for PRB (using the oz from Borden main zone alone). If the oz is doubled to say 8M oz then the SP would be 2 x 6 = $12/s, etc. Very simple math I would say.

goldhunter