$?Bill in a ? Life mine, page-355

"You are correct no one buys anything for its in-situ value."

Wrong.

Exploration assets in particular are those on which an economically viable mineral deposit has not yet been discovered. Such assets are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence of a viable mineral deposit.

There are three different approaches to valuation:

Income / Cash Flow Approach:
It relies on the “value-in use” principle and requires determination of the present value of future cash flows over the useful life of the mineral asset. Valuation methods for this approach include Discounted Cash Flow as you described above.

Methods Market Approach:
It relies on the principle of substitution. The mineral asset is compared with the transaction value of similar mineral project transacted on an open market. Valuation methods for this approach include Comparable Transactions, Option Agreement Terms, Gross “in Situ” Metal Value,

Cost Approach:
it relies on historical and/or future amounts spent on the mineral asset. Valuation methods for this approach include Value per Unit Area, Market capitalization, Appraised Value, Multiples, Geoscience Factor.

Best if luck in your future investments.