Guy's?
With all due respect we may be getting a little ahead of ourselves. Before we start throwing around numbers like 500,000 ounces please keep in mind, the same management of this company was tossing around numbers of 1 million ounces before Christmas LAST year!
If this company can prove up a resource of reasonable size and also prove that it can be mined profitably, then they may have a shot at selling based on the in situ value. The number will primarily be based on the ROI potential and not nearly as much,.... because it is in Quebec. No matter how much gold there is and no matter how friendly the jurisdiction......it doesn't make a difference if it costs more to mine than the resource is worth. Being in Quebec definitely helps.......but there is a lot more to it than just that.
Think about it this way.....the better the resource..... and the more profit potential an exploration companies asset has....... the less likely they will actually mine it. If they do end up mining it, that will be because it is marginal and no one wants to take a punt and mine it, as a part of a mid tier companies portfolio. If there is a real valuable resource here then it will be bought out........If you believe otherwise you are dreaming.
If it is crap(marginal)........GNH will mine it......why? ......because what else can they do?
If it is good(potentially profit-able)........it will sell........
This is where everyone starts screaming...."what about Osisko"......well, that had a lot to do with timing as they proved up a large, low grade marginal deposit that they would have to mine themselves as no one was interested. Then the price of gold went nuts just as they switched from explorco to mineco. I'd rather be lucky, but if you think we will enjoy some such luck then you should consider a casino for your gambling pleasure. If we are fortunate enough to prove a mine-able resource then lets also hope it is good enough to solicit a third party offer.......! A discussion about in situ value of a low grade resource in mining friendly Quebec....with all the "What if" caveats attached, is more sensible.
IF......and a gigantic...IF... there can be 500,000 oz "proven" at the low grades we've been seeing, I would guess at $100.00 in situ.
Let's start there, and you can rip me apart for being wrong on my number........because I'd take it in a heartbeat!
PC
