Value Microcaps Junior Miners

[checkmate28]

EXN.T Excellon Res. +15% to .61 Largest green % again on my 50 minors list on news that Eric Sprott liked EXN so much yesterday that he invested $3 Million in Excellon at .45/shr

Now up 200% off the lows from Dec15 - Jan16 and I still don't see a better valued silver stock when looking at risk vs reward.

Calculation for Future share price.
From the 2015 Annual report
http://web.tmxmoney.com/article.php?newsid=83788928&qm_symbol=EXN

Mine development continues to be a priority for 2016 as the Company accesses the Rodilla and high-grade 623 mantos, the latter of which hosts mineral resources of 83,000 tonnes at 1,232 g/t Ag (1,777 g/t AgEq).

where else can you measure grade in pounds per tonne? 3.7 PPT

Silver in the 623 Mantos they are nearing.
83000 T x 1777 g/t AgEq = 147,491,000 grams
147,491,000 grams / 28.4 gpo = 5,193,345 ounces in the 623

Mill capacity is 650tpd
83,000 tonnes @ 650tpd = 128 days of full production 1777 gpt

The question is when in 2016 will they hit the 1777gpt 623 mantos

Surly they will be blending this ore with the other areas, but there will be a nice boost to the bottom line at this time.


Another calculation for thoughts. If I set up an equation, I get that if
1777gpt nets 5,193,345 ounces yearly production, than
1400 gpt nets about 4,000,000 ounces yearly production.

If the AISC is $9/oz and silver averages just $16/oz, than there is $7/oz or ($28Million) to to pay some taxes, CAPEX and drilling out the CURD mantos. Great time for Excellon to use the $22 Million lose carry forward on that first $22m Profit.

Possible share price calculation. If they were to cash flow just $10 Million and we applies a 8X to that CF , we deduce a fair value market cap at $80 million.

Current MC @ .50/SHARE = $27m
Future share price based on shares getting to fair value at $80 million MC is over $1.50
If silver moved to $23/oz than we could double the margin above, and double the fair value MC and the shares would price at $3/ share

My only point is to point out the potential here, and why I think this is one of the best values with the best risk/reward ratio out there today. Im looking to see $1 per share this year conservatively, even if silver stays at these levels.
Buy the pull back.

Checkmate28