SpiderM

$4: Only 4/3.5 = 1.14 = 14% premium? Nah.

$6-7: A bit better, but no much. Take $7, this is only 7/3.5 = 2 = 100% premium, but this would assume a resource of a pit-constrained (there is more lower grade than 1+gpt outside the pit-constrained model, but this is not counted for the 4.3Moz most of which (85%) is indicated resource. If a lower cut-off was used then the resource would be 6.37 Moz Au (50% more than 4.3Moz)...Ref. PRB website.

Case Studies:

Reference Case, Iamgold/Cote Lake: Grade for Cote Lake is 0.82% for 6.8Moz resource, 87% inferred and only 13% indicated. For this IAG paid $608M in 2012. Using the reference case above as a yardstick (mine, you may have yours, but I find this general rule useful, at least it would give a rough estimate...the kind of thing we are doing).

- 4.3 Moz: $608M x 4.3/6.8 =$384M/75Ms = $5.12/s, ignoring the HGZ.

- 6.37 Moz: about the same as Cote Lake, $600m/75M = $8/s, still ignoring the HGZ.

- 10 Moz: taking into account some of the HGZ, $608M/6.8Moz x10Moz = $894M/75M =$12/s. (It would appear that the HGZ could bring the resource up in the 10+ Moz level, based on the high grade results PRB keeps on pulling out of the holes heading to the other side of the lake).

- 12 MozAu for Borden Gold: No need for a calculator for this.

Bottomline: wait for 10+

My take only. Rebuttal, concurrence?

goldhunter