First Mining Gold Corp (FFMGF)

[Implanting]

I decided to e-mail Derek in IR a question about possible gold valuations and what prices it might take to get deals done for FF properties in the future. This was his reply to me.

"We are not looking or waiting for a specific gold price, rather we're waiting for the right time when we can extract the most value from our portfolio of assets. We purchased our properties with the expectations that they could be economic at a gold price of $1200, thus we don't really require a higher gold price from where we are now. Various major and intermediate mining companies have already approached us about doing deals, but we are in no rush to sell our tier 1 or tier 2 properties.

In most cases we have only owned these properties for 1-1.5 years, so we need to first attempt to add value to them before conducting any major sale. Our current enterprise value per ounce of gold is $22/oz.US, thus we need to advance these assets to attract higher value."

That was his response and what he says makes a lot of sense, but I'm also not buying the notion there's not a gold price in Management's mind that will trigger some selling activity. The most important thing that any potential buyer wants to be sure of is the gold price moving higher, so IMO the gold price is technically going to have to break-out past a number that indicates only a move higher is in the offing. My guess would be maybe the $1450-$1500 range.