estimates

Folks

As the end of the month approaches, its time to reflect back on some of our rumblings back in early Feb. Here's my take on the estimates. I know we've talked a lot abt calculations etc back in my Feb postings, time to touch base this topic for perhaps the last time :)

Pre-drill Estimates for CID in E47/882: 615-571 MT

Post-Drilling estimates for CID in E47/882
1) Area B & C have greater thkness
2) Area D & E have a greater areal extent (ie sq km)

For sake of simplicity, I've stuck with 15m thkness.

D: 4.5 sqkms @ 15m = 175.5-189 MT
E: 6 sqkms @ 15m = 234- 252 MT
B: 1 sqkms @ 15m = 52-56 MT
C: 4 sqkms @ 15m = 208-224 MT
Total: 669.5 - 721MT of CID

They've also reported BID covering abt 1.6 & 0.4 sqkm in Area D & E with open thkness, lets just say 15m, which gives us 78-84MT BID. I haven't chk'd BID for area B & C yet.

Overall I'd b looking at 747.5-805 MT+ for Area's B-E (both CID & BID).

Drilling for area A will commence nxt qtr, so if we use the pre-drill CID estimates for Area A (103-96MT), then we get an estimate between 850-991 MT

At an extremely conservative 20c IGV, this equates to $170m-$198m. At a higher IGV of around 50c to a $1, the potential is much more (i.e. $1708-1980m for $1 IGV & so on).

Looking at how this translates to the SP,

Shares on issue: 1208m,
Mkt Cap: $111.13, Cash $14.88m
EV: $96.25m,
Reserve: 850-991 MT
EV/Res ($/ton): 0.113c - 0.097c
Value/Share: 170/1208 = 0.14-0.164c

With further drilling to commence in Area A, the estimates will get updated routinely to a higher figure IMHO.

All the best to those who've held on since '07, Warnie, Druid, Nice One, WillShanShan & Pelm (if u r still around these days).

Just my thoughts

cheers