Sidney Resources Corp (SDRC)

[surrealistrader]

The cited "Estimated Results" is clearly far from a definitive nor exhaustive account. Let's not pretend that it is or is even meant to be. For conversations sake, I do see some problems that could lead to a wide margin of error if you were to treat it as such. We must understand that we will necessarily not have access to the same information the company does in order to do that though:

One thing that stands out to me is the conversion of grams to ounces instead of troy ounces. The spot price of precious metals is the market's conversion rate per troy ounce. There are approximately 31.1035 grams in a troy ounce. 1,381,830 grams would equal 44,416 troy ounces.

The value of $1382.00 per ounce is stated as a "portion of the potential values." This implies there might be higher possible values, but does not provide a basis for the chosen value. For calculations sake, market fluctuations and metal purity levels have already seriously affected this value, and gold is clearly not the only metal present in any of their concentrations. Recovered Ounces = 44,416 × 0.80 = 35,533 ounces. Total Value = 35,533 ounces × 1382.00 dollars/ounce = 49,111,906 dollars. A small difference, perhaps.

The aforementioned problems are not what concern me as an investor. The margin of error between $49million and $53million for 6 months of work (set to expand) is nominal. What will interest me most are calculations confirming previous projections of the stockpiles grade, and a break down of all in sustaining costs of running this operation, in order to arrive at a projected long term value of the project. We don't know how much stockpiled ore it took to create this amount of product, nor do we have a break down of costs to know how much profit will be available for the company and shareholders.

That all being said, I appreciate the preview from SDRC but realize that every one of these numbers can and probably will change.