Consolidate Posts 255-262
board clutter...
Great Basin Signficantly Increases Burnstone Gold Resources
Tuesday January 18, 10:00 am ET
________________
M&I up to 7.2M ounces
==============================================================
Hi Mark,
If you have the time, may I ask how you arrived at that total?
Posted by: ewallman
In reply to: amarksp who wrote msg# 254 Date:1/18/2005 11:05:38 AM
Post #of 262
Well, well, that is good news. I like that it is now all considered one deposit.
Posted by: amarksp
In reply to: basserdan who wrote msg# 255 Date:1/18/2005 11:09:11 AM
Post #of 262
Use 350 cutoff (actualy I believe 325 cutoff would be more accurate, but not listed in table)
From the table (near the bottom):
350 45,763,000 4.93 7,246,000
Then I rounded to 7.2M ounces
_____________________
Be advised, GBN will only own 80% after required BEE deal, so the real number to use for MCPRO is 80% = 5.8M ounces.
Posted by: basserdan
In reply to: amarksp who wrote msg# 257 Date:1/18/2005 11:12:20 AM
Post #of 262
Thank you Mark.
You are the man.
Iyo, will their current water resources be sufficient?
Posted by: amarksp
In reply to: basserdan who wrote msg# 258 Date:1/18/2005 11:21:22 AM
Post #of 262
Still trying to get water issue answered. Per their tech report filing, adequate water to construct the mine but not adequate water to go into production until 2007 or so.
New water pipeline to be built by SA Government still in design phase. As soon as this pipeline approved for construction, likely in late 2005, would think GBN could start Burnstone capex. See prior posts in this regard.
Posted by: ewallman
In reply to: amarksp who wrote msg# 259 Date:1/18/2005 12:46:44 PM
Post #of 262
I am fairly confident with also throwing in the 'inferred' number at this point. Given the size of the resource and drilling success there is no reason to believe it is not there. And the grade is actually much higher on the inferred portion.
M&I&I @350 = 11.9M ozs
One hell of a deposit...
Posted by: amarksp
In reply to: ewallman who wrote msg# 260 Date:1/18/2005 1:10:34 PM
Post #of 262
Well, I am a bit more confident than you..., still using 12M
Believe GBN has 12M ounces after the 20% BEE deal and HL joint venture as follows:
13.8M M&I+Inferred ounces at Burnstone = 11M ounces post BEE
1.5M ounces at Ivanhoe = 1M ounces after HL (includes HL royalty payment to GBN)
11M Burnstone + 1M Ivanhoe = 12M total ounces of which 5.8M ounces are M&I
Using the above, my MCPRO calcs show currently GBN trading at:
$18.36 Market Cap per M&I ounce
$8.87 Market Cap per Total Resource ounce
GBN remains very undervalued relative to its peers... GBN would be a much better take over speculation if they could somehow get more annual production out of Burnstone, e.g. over 500,000 ounces of production per year... Appears the Burnstone thin reef mine does not lend itself well to mechanization, remains largely labor intensive and cannot be ramped up to larger annual production easily...
Posted by: huesos
In reply to: None Date:1/18/2005 1:39:50 PM
Post #of 262
Too much for me, I'm trying to get in now at 1.20 limit. I've got 5 years to wait and I like my chances.
News 
Market Data 
Discover 
