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Message: ITG Canada sells again at the end of the day, and recent rumours of Tyhee

ITG Canada sells again at the end of the day, and recent rumours of Tyhee

posted on Dec 08, 2009 10:49PM

So, a second time in two days, and no trades from ITG until the very end of the day. THey only sold 25,000 shares, at 22 cents, but that may have been enough to keep the close down .5 to 1 cent. On the other side of the aisle, nice to see more Canaccord buying.

Let's see who buys and who sells tomorrow. If the rumour is true, form a post earlier today, that DW said that they are receiving interest and potentially looking at JVs, that would be enourmous news. I've belived all along, and posted such, that a buyout of TDC is not in shareholders interest, however a JV that accelerates exploration and mine construction would be excellent.

But I think that Tyhee must be at the helm of any JV, until their mine is operating. Because getting permits done in YK based on modest expectations of regulators who are comfortable with DW et all is one thing, but if a larer deal came along too soon, it could thwart the permit process or increase regulator/stakehodler expectations.

By far the best thing I read today was a quote attributed to DW that inital produciton could be 200,000 oz per year, vice the 135,000 previous. I think it's a hint at what's coming in the pre feas. Imagine how positive it would be if based on 200,000 oz / year, with $90 or so oil, Cdn dollar at par, $1,000 gold (minimum) and costs of $400 per ounce.... Let's see, with even 300 million shares, that would look like:

200,000 oz / year X $600 /oz (net) / 300,000,000 shares = $0.40 / share. X 25 PE, or better with exploration news coming in all the time, putting an upwards bias on future earnings growth, but even at 25 that would be our $10 share price. IF we get there.

For those of us gold nuts who belive that by the time Tyhee heading into production, gold will be $1500+, even if we assume oil is up due to inflation, to $120 to $150 per barrel, and Cdn Dollare at $1.10 us, the increase in the POG more than offsets the increased costs of production. Hopefully the details in the Pre Feas paint out a few different cases, however my eye will be on the $1,000 gold baseline as it is easy to compare reality to that.

I am feeling very excited about the coming year.

Oh yes, she will be mine.

SKELEG

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