jorc estimates, page-3

Post release of that JORC, this stock is so undervalued it isn't funny.

I've been reading through a few broker reports on gold explorers, and the trend seems to be that most stocks have an enterprise value of, on average, $130/ounce for a grade similar to that at Anthill.

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For your interests...

http://www.papillonresources.com/images/stories/Broker_Reports/2011_02_24_Argonaut_Papillon_PIR_-_High_on_drilling.pdf [page 3]

http://www.papillonresources.com/images/stories/101223_PIR_Hartleys.pdf [page 14]

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Fully diluted, MKO has ~80M shares on issue, of which, 20M are through the assumed exercise of the 20c options, which yield a $4M cash value. MKO also has $3.5M cash, giving the stock a net cash value of $7.5M.

The Anthill JORC resource of 160koz is worth $21M according to the above broker model. So Anthill and the net cash balance alone is worth $28.5M in EV, or 36cents per share.

Then we have the Goongarrie JORC, which could really be anywhere from 50koz to 80koz by my estimates, adding a peer assessed value of about $6M-$8M, or about 7-10 cents per share, on top of the 36cent per share evaluation above.

Note: quite basic and simplistic in nature are these calculations. In reality, the market doesn't think this exact same way, but on a peer comparison alone, MKO is greatly undervalued. There are, ofcourse, some quite extraordinary stocks (eg. PXG) who trade nowhere near an enterprise value of $130/ounce, and this should be duly noted.