next weeks price, page-12

Goldie

Yep I had a guesstimate of 75c not being unreasonable

But and it is a good point. Wiilbur asked about fully diluted.

So to be pessimistic I have run it again using 303m shares on issue and to be even more skeptical I have added 30m more shares to allow for a cap raising of $10m at 30c.

As fully diluted and assuming an imaginary cap raising I get a 0.56 cent share price under the following assumptions.

1) The resource is upgraded across all of Central Bore Justinian, Hann, Khan and Elvis by at least 500kOz.

2) That production is highly probable and an EV across the resource of $150 per ounce is warranted.

So yes I am still thinking 75c - options being exercised are in the future and the resource may be extended by then and I figure a cap raising means more drilling = more gold. But I am keeping an eye on 0.55c - interesting coincidence given recent action.

To answer the other questions.

1) Do they have resources? Yes.

2) What probability do they have of growing their resources?
Well there is obvious "there might be lots" in those thousands of square km's , but in the immediate future extensions to Justinian looks good.

To see why you need to wack things into excel and run a cluster plot of coordinates versus grade.

What you will see is a cluster of holes around hole 107 (568,655E : 6,885,371N) which contains 7 meters at 27 g/t including the 1 m at 102 g/t. This is at about the same northerly coordinate as the huge central bore hole but 400m to the east.

Around this you have what looks like single pilot holes to the East and South (my guess is they were just testing the extents).

50 meters to the East there is hole 109 at (568,715E : 6,885,390N) which has 3 meters at an average of 5.6 g/t from 47 meters. To the south 200 meters from the main hole we have hole 116 at (568,661E :6,885,163N) which has about 30 meters at an average of 2.5 g/t from 42 meters. This has alternating layers in it of high then low grades.

So pull back a bit from the picture and have a think. Here you have a hole in the top left corner with huge grades. 50 meters to the east we have good grades. 200 meters to the south you have 30 meters of reasonable grades.

The question is what is happening between them? How much further to the South does this go?, how much further to the East.


3) Will they go into production? With the current pog and the amount they have I would say yes.

4) Will they survive that long? That one is hard. Like any explorer funding is a quarter to quarter exercise. To date management have done nothing wrong and don't appear to be a collection of dodgy brothers. At least they are serious about their geology.

5) Is there somewhere else that I know of that would be a better place for my money? Not yet but spending lots of time looking. Any of the strongly trending juniors are worth a second look.


As a final caveat - the above is all my humble opinion.