gold to hit $ 2,000

http://www.iii.co.uk/articles/56122/industry-view-gold-could-hit-2000-months-ahead

If Gold does hit $ 2,000 an ounce it will represent a 12% gain , if Silver follows it will be $38.5 an ounce . This is less of an increase than when QE1 & QE2 happened so it is well possible.

This has massive implications for Scotgold .
Our payback time will be dramatically reduced making us more attractive to lend to.
Our profitability will increase dramatically
21,000 ounces of Gold @ $2,000 = $ 42,000,000
74,700 ounces of Silver @ $ 38.50 = $ 2,875,950

Gross revenue of $ 42,875,950 = £ 27,918,815
Costs of £360 an ounce for Gold Eq of 22,465 ounces = £ 8,087,400
Giving a net profit before tax of £ 19,831,415 and that is with a 16% contingency allowance, take that off and you can add £ 1Million +

These figures are based on an average grade of 10.2g/t Au, if there is to be an upside to the existing resource grade it will be even more profitable , each additional 1g/t Au will bring in an additional £ 2,881,172 at $ 2,000

The Nov 2011 presentation quotes 10-16 g/t for our Inferred resource of which there is 311,000 tonnes . The first round of drilling into the Inferred section of the resource which will be mined first has returned an average grade of over 19 g/t Au from 3 holes , the next 5 drill holes from phase 1 will give an insight if this is to continue as will the completed phase 2 and the current ongoing phase 3 . Time will tell you what I have seen first hand in the mine (5x) and on the hill top (2x0) and from the air (1x) .
I added 56,742 today to take my combined holdings to 3% +1 share .
Why ?
High grade resource with potential g/t upgrade,
Potential resource increase in and around Cononish ( Snowdown )
Low cost, £ 360 an ounce which includes a 16% contingency allowance
Potential premium for pure Scottish Gold and Silver, 25% of production,
Gold and Silver price increasing,
Short payback time,
Several potential local targets within 5 miles similar to Cononish ,
Large exploration holding , 4,300km2
First company in with all the best exploration ground,
RTZ's exploration and results from the 70s & 80s are coming to light ,
Hand picked experienced team,
Local population backing,
£600,000 government grant
Blue print for future projects,
If you can get planning in the National Park you can get it anywhere ,
Over 85% of our projects are outside the National Park,
Scotgold have had encouraging discussions with local councils for future projects ,
Sorry if I have missed anything but I think this is as good as a ramp as you will find anywhere ,only difference from other ramps is this one is fact not fiction !