crystal ball valuation

GIR have many productions being drilled atm and with $70mill in the bank this will only increase.
They often give a resource "target" in descriptions of these projects.
• Beebyn-Weld range
• Western Creek
• McPhee Creek (ann today)
a conservative JORC later this year when the I's get dotted and T's get crossed 100mill tonnes resource is not unreasonable.
A number cruncher associate says that good DSO Fe companies are valued by the market at $10-$30/t in the ground. Lets go with $10/t.
100mill tonne in the ground JORC would suggest mkt cap at $1B. Current mkt cap is $330. This would suggest sp $5-$6.

Now lets put in Earaheedy. They "target" 1 billion tonne resource over a strike of 130km. Even if it ends up at 500mil tonne the numbers get scary.
I will not get ahead of myself so I will say that my target by end '08 is $6 - $7/share.

There are MANY other fingers in pies as well. I am in long.
I welcome comment on my "back of the envelope" calculations
Cheers