Raven Gold Corp. (RVNG)

[schadenfreude]

Silverbullet, 300t/day refers to the amount of rock being run through the mill, not the amount of gold produced. Historical grades there are 2.59 grams per ton. 300 x 2.59 x 85% (the historical recovery factor) gives you 660 grams per day of gold production. A gram is .0322 ounces so 775 x .0322 is 22 ounces of gold production per day. And Raven has to share this with partner Tara. At best, Raven can earn 60% of the project but only after spending $3+ million, money that it doesn't have, by the way. Based on Raven's current interest of 25%, Raven's share of the gold revenue is aproximately $1.2 million per year. And that's before cash costs, overhead expenses etc.

300 t/day is a TINY mill by industry standards. Raven has one property and it's current interest is only 25%, no NI43-101 compliant reserves, no cash, negative book value, and yet it has a market cap larger of well over $100 million; that's quite a bit higher than partner Tara, which has multiple properties.

Today's stock price has nothing at all to do with value; it's all the stock promotion. Raven will probably announce a private placement shortly. My guess is that it is in the 80c/unit range with at least one and perhaps two warrants attached. This, of course, will be very bad for the stock price. My six-month target is 25 cents.