TSO fair value? Short term target 30c, medium term 60c!, page-83

So I read those posts that lucked out put regarding the M&V valuations. I'm a little confused and would love some clarification from persons more experienced than I in these sorts of thing. If the author says that even in tier 1 mining districts, large miners wouldn't want to be paying more than $85 per ounce for in ground resource if you have a grade of 1.5g/t or higher then does that mean it's a simple calculation of the following:

5,000,000 oz/Au - (my pie in the sky figure)
x $85 = $425,000,000.

Is that right? It seems low. Is that the reason we want to get as far along the life cycle of this before being subjected to T/O bids?

Or, is there something that I'm totally misunderstanding or missing or both and need a clip round the ear with a hefty gold bar polishing cloth?

Rego