Based on Mikey Fulp´s view (thanks Panning4Gold for the link), $ 80-90 for an ounce in the ground is deemed a reasonable valuation.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=103587&sn=Detail

If we have a robust gold price, we're going to have a robust junior stock market. They're not one-to-one correlative, but this market is driven by the gold price. If you look at valuations now, they're at an all-time high. Recent week-to-week evaluations are $85 to $90 per ounce for in-situ gold resources. I should point out that I'm talking about advanced explorers, because that's what I generally cover.

Could GNH classify as an "advanced explorer", I certainly think so.

As an analyst, I often use 10% of gold's worth as a fair valuation for gold exploration companies. Notice I am saying, "what gold is worth," not "what the gold price is," because that is dependent on the U.S. dollar. When the U.S. dollar is strong, the gold price generally suffers. Gold is at an all-time high in euros. I'm sure you've noticed that the Canadian dollar is on par with the U.S. dollar now. So let's go back to the question: what is gold actually worth? Following Paul Van Eeden's logic, we look at the gold price in U.S. dollars compared to the monetary supply. With the inflation of gold being new gold mined, and the inflation of the dollar being the increase in monetary supply, you come out with a fair price of what gold is worth of about $850 in U.S. dollars. The other $200 or $300 that gold is trading above $850 is pure speculation. Based on about 10% of what gold is worth, $85 to $90 per ounce in the ground is probably what companies should be valued at.

So, going back to Glorieux´ "Numbers" post, I assume an even more conservative 3 million ounces but with $ 80 per ounce in the ground (Mickey Fulp conservative), which brings my calculation to $ 240 M market cap.

Going with 139 M shares f/d after fully exercised PP gets us to $ 1.73 per share.

(Wasn´t Larry suggesting a ten-bagger from a $ 0.18 PP point ? Quite close, innit ?)

Not too bad for a conservative calculation (based on Mikey Fulp´s view).

I´m hesitating thinking about more "upbeat" numbers as in 10M ounces @ $ 90 per ounce in the ground. Would be nice to prove up that tonnage at some stage with POG still over $ 1100.

FANTOMAS