Tower Hill would substantially derisk the purchase I believe....

Tower Hill would substantially derisk the purchase I believe.

The Reserve is 9.6MT @1.8g/t for 560,000 ounces. That would be a good top up to the underground ore for around 10-15 years. It has further potential as well.

One thing that gets overlooked in the valuation stakes is that the stock price is what is being valued and not the actual reserves of SLR and GMD.

SLR has 1.6 million ounces of reserve and GMD has no reserves. It seems short sighted of the SBM directors to be recommending the GMD offer before the reserves are released. GMD is essentially a paper tiger that is being propped up in the short term.

SBM holders should be asking questions of the board as to why they wouldn't consider a superior offer from SLR on a reserve basis.

Note at $1 SLR has a market cap of $930 million and EV of $630 million for 1.6 million ounces of reserves which is currently clearing $1000 an ounce. In other words the reserves alone are trading at a 60% discount to the market price of gold before resources, infrastructure and exploration.

Combined after consolidation at $1 SLR would have a market cap of $1,250 million and EV of $1,350 million for over 4 million ounces or ore.

I expect SLR alone to produce 80,000 + 70,000 + 70,000 or around 220,000 ounces in the next three quarters. Less $25 million per quarter in exploration, capex and admin costs should see them add around $120 to $130 million before year end which would take them out of net debt before year end.

At $3,000 an ounce Gwalia should at the very least break even so it would be close to a zero sum game until getting to the higher grades underground.

Having a 10-15 year outlook at say 200,000 plus ounces per year from Gwalia, plus 300,000 ounces p.a. from existing operations would move SLR up a league.

GLTA/IMHO