This may be the situation. However, markets are generally forward planning, based on actual measured reserves and the probability of reserves expressed by inferred reserves.

MTO's reported reserves are 312k oz M&I and 686k oz Inferred. Based on 50% Inderred = M&I, then this gives a historic estimate of reserves at 655k oz (312k + 50% x 686k).

At a market cap of $75, this gives a mkt cap per oz of gold at $109. Based on industry based metrics that I have reviewed, the lowest value of oz in the ground for producing companies start at $100 and rise to many hundred's of $ (on this basis, Aurizon's reserves amount to $250 oz).

Therefore, it appears that the present mkt cap of MTO is low, based on historic reserves only. However, the historic reserves for Barry are only 52k oz Indicated and 126k oz Inferred. Your "what if" question relating to the potential for 1m oz at Barry may not be excessive, when it is considered that 20k meters of drilling over 2 year has produced high values for an open pit. Moreover, Barry has a low overburden stripping ratio when compared to Aurizon. Furthermore, the grading of Aurizon's Joanna open pit, averages only 1.5g per ton.

In conclusion, investors who are able to compute the math relating to the valuation of MTO, may come to the conclusion that the Laurentian Bank Securities target price of $1.15 (February 2010), could be a very prudent forecast.

Hope that this may be of some value.

Regards