Ann: Drilling Starts at Hendrix Gold Project Maur, page-3

re: Ann: Drilling Starts at Hendrix Gold Proj... Hey Coggs. Let me give you a hand.

In your scenario, if there's 5g/t and 2 million tonnes then that makes 10 million grams.

The gold price is $1720/oz. 28.3g in an ounce. So the price of a gram of gold is $60/g.

So the potential revenue would be US$600M. In AUD, that's A$560M. Don't forget about how much it costs to build and operate a mine. For a high grade mine, a plant may not need to be as big as some other plants around but you'd still be looking at capital over $100M. And your operating cost on a small plant like that, but with high grade, is possibly going to be $200-$400/oz...

This is a very simplistic way of thinking about company valuation. You need to think about "per ounce" metrics in the early days and then you'll start thinking about cashflow analysis once things get further progressed. Anyway, just keep all this stuff in mind Coggs.