Your post re valuing resources is excellent @setfire2thehive ....

Your post re valuing resources is excellent @setfire2thehive . And just to add to what you have said in answer to @BerserkWarrior re valuing gold resources:

- a few years ago the benchmark market cap was $50 per oz of gold resource. This has now risen to around $100 per resource oz due to the rise in the gold price over the last few years.
- this is a benchmark figure only for the average resource. The actual market valuation can vary considerably from this based on factors like:

- resource proximity to established infrastructure - if the resource is in the middle of nowhere it will be discounted, if it's near established gold processing infrastructure it will attract a premium
- grade of resource - high grade is good - a couple of years ago RMS paid from memory around $500/oz for Spectrum's Penny West resource since it was very high grade (+10 g/tonne)
- strip ratio and depth of resource - if it's deep with lots of barren cover, not good. Shallow and easy to extract is good.
- nature of resource - one large, consistent open pit, good. A large number of small deposits (25 - 100k oz each) scattered around the place, not good. Also, if the resources are extensions of previous mine workings this can be not good depending on the scenario
- most importantly and often overlooked, metallurgy of the resource. Some gold resources (even high grade ones) can be very hard to treat. These types of gold resources are referred to as refractory gold and I avoid them like the plague. Companies often go broke trying to liberate the gold from the ore. Over the years I have lost my shirt a few times on these refractory type scenarios and now I steer well clear of them.

GLTA & DYOR