valuing bgl gold in the ground

Junior Mining Companies: Valuing Gold in the Ground

http://www.pinnacledigest.com/blog/frank-tabbert/what-gold-ground-worth

January 19, 2013

Here is a pretty good formula to follow:

Inferred value $25.00 per ounce
measured and indicated $50.00 per ounce
proven and probable $100,00 per ounce.

Of course many other factors must be considered but this is a good basic formula to begin your due diligence when trying to find value in the specs. www.tradepreciousmetals.com/junior-mining-companies-valuing-gold-in-the-...


BGL have 3.75m oz, about 2.5m indicated, 1.25m inferred POG a year ago was about $200 higher so lets be conservative.

2.5 x $40 (not $50) = 100m
1.25 x $15 (not $25) = 18.75m
Cash = $3m

Total = $121.75m / 342m shares = 35c (10p) per share

Now if at DFS we move our indicated to a Reserve at say $80/oz (not $100)

2.5 x $80 = 200
1.25 x $15 = 18.75m
Total $218.75 / 342 = 63.9c (36p)

We need to fend off a pre DFS TO so we can get true value for our investments, and true value is completing the DFS and 63.9c / 36p per share. Keep hold of your shares!