billions of pounds of copper + gold, page-41

Hi Brunette,
I haven't tried to work out a valuation, because it's a bit early.
I'm not an expert in valuing metals in ground, but I do look for emerging companies with similarities, for comparison.
An interesting one is Indophil (www.indophil.com), at Tampakan a project they a 30% stake in, they have a resource of 2.2 billion tonnes. That being the total amount of dirt with metal in it.
They have a resource of 12.8mt or more than 25 billion pounds of copper and 15m oz of gold. Grades are not great though, with the average gold grade at .2g per tonne and copper at .6%. They currently have a market cap of $320m for their 30%, a similar percentage to GMR's stake in Falun.
They are not producing.
I'm not sure if Falun has a potential resource as big as 2.2 billion tonnes.
They mined over 35mt from an orebody that has possibly only been 10% explored. But 35mt mined does not mean 35mt was the total mass. Clearly the mass would have been greater.
Maybe Falun will have 1 billion tonnes, less than half of Tampakan, but hopefully significantly greater average grades of gold. Historical mining and recent drilling supports the optimism for higher gold grades. If so Falun may exceed Tampakan in total gold.
The potential for a wide ranging copper find looks promising, given the continous announcements expanding the target area and the high grades mined to date.

A commpany worth reading about for major copper discoveries is Cudeco www.cudeco.com.au. Their permits encompass numerous historial copper and gold tenements and mines and they have been very succesful.

Hopefully the forthcoming drill results will show what sort of grades we're looking at and if they meet expectations, a lot more credibility will be attached to all of the older drill records. My feeling is that Falun could be a mega copper site, but only the drilling will prove it.

If Falun meets expectations of grades and volume of deposit, it could be worth $200m+ to GMR, prior to production, with genuine potential to be worth a lot more, especially if copper ends up at $4 per lb.

It's a fair way from proving that of course and it may be found that the mineralisation is less widespread than expected, however it's unlikely that Zinifex bought in without being confident of a major upside to the project and the same goes for Royal Falcon. That's two very big ticks of approval.

As we all know, the other big hope for GMR is Falcon bringing in other bonanza projects and for the African mines to start producing big gold finds. If that happens GMR may go well past the $1b mkt cap.

IF if does get that big, it won't be for a long time, but there is plenty of money to be made in the meantime and IMO very little likelihood of an SP slump this year.

This is all conjecture obviously and tonnages and grades could be out by a very long way, up or down.