Potential Resource Calculation...
Here is a copy of the figures based on the assumption that the 50 ton sample provides a good indication of resource grade..
800 m x 600m x 1000m = 480,000,000 cubic meters of ore
(x 2.4 ton/m)= 960,000,000 tons
(x 3.17 g/ton) =3,043,200,000 grams of gold
(divide by 31.1 to get troy ozs)=97,852,090 ozs gold
(**Rennie has claimed a recovery rate as high as 94% in the past..This news release claims a recovery of 90.9%...As such we'll use the lower number)
(x90.9% recovery)=
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88,947,550 "potential" ozs of recoverable gold
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Again, recent takeovers have been done at the $60-$100 US/oz for proven ozs in the ground. In the past, Rennie has suggested that mining costs for Batoto will be near industry lows because of both the geology and economics of doing business in the Philippines. As such, I believe it would be a fair assumption to believe that the resource at Batoto would sell at the high end of the scale. However, here is the range based on both $60 US and $100 US/oz so everyone can make their own assumptions.
@$60 US/oz
=$5,336,852,990 US
(x $1.2 to convert to Cdn.)=$6,404,223,588 Cdn
Assume 100,000,000 shares outstanding....
$64.04/share
@$100US/oz
=$8,894,755,000 US
(x $1.2 to convert to Cdn.)=$10,673,706,000 Cdn
Again assume 100,000,000 shares outstanding
$106.74 Cdn/share
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Note: These figures calculate a potential resource using "only 3%" of the area that Sur has determined to be mineralized. (approximately 32 sq. kms)
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To an ever increasing grin....
T2