If you want to play it a little safer, have a look at YTC.
- DFS for its Gold/Silver/ ect Hera mine is due within 2 weeks. - Its Nymagee copper project is getting bigger with every drill result.
Latest report by Argonaut with site visit and number crunching: http://www.ytcresources.com/public/documents/4/11/110713%20YTC%20Resources%20(YTC)%20-%20Site%20Visit.pdf
Gives a valuation of only 0,76 Au$ (current SP: 0,62 Au$) BUT: The basis for their calculation is long time (10y) prices of only - US$ 1000 for gold and - US$ 2,5 for copper.
Cahs costs used in the report are US$ 676 and US$ 1,50; so higher prices improve profit a lot once they are above that level.
If you use their numbers: US$ 1000 - 676 = US$ 576 profit / ounce for gold and US$ 2,5 - 1,5 = US$ 1 profit / pound for copper.
At current spot prices US$ 1676 - 676 = US$ 1000 profit / ounce for gold ! and US$ 4,3 - 1,5 = US$ 2,8 profit / pound for copper !!
Bullish scenario: US$ 2000 - 676 = US$ 1324 profit / ounce for gold and US$ 5,0 - 1,5 = US$ 3,5 profit / pound for copper.
So, at current or higher prices earnings from copper will be roughly 3 times higher than expected by the report.
If, otoh, the world economy tanks and QE3 comes into play, gold prices will go up to US$ 2000 or more and they will make a killing with Hera ...
