Value Microcaps Junior Miners

[kipp440]

Catching up to AXU - Alexco

http://www.alexcoresource.com/i/pdf/AXR-Overview.pdf

Looking at this presentation there should be this amount of contained metal per year:

18,480,000 pounds of Lead contained in the concentrate.
10,164,000 pounds of Zinc contained in concentrate.
2,400,000 ounces of silver contained in concentrate.

They will have to pay a treatment charge to a smelter to get the concentrates converted to metal. These charges are low, but I have lost track of the exact cost. If I discount theses 10% from today's metal prices it looks like this:

Lead - 18,480,000 x $1.00 = $18,480,000 x .9 = $16,632,000
Zinc - 10,164,000 x $.96 = $9,559,242 x .9 = $8,690,220
Silver - 2,400,000 ounces - 25% 600,000ozs to Silver Wheaton @ $3.90 = $2,340,000
1,800,000 oz x $20/oz = $36,000,000 x .9 = $32,400,000

1 year revenue is approx: $57,722,000

53,100,000 shares issued.

They have 400 tpd capacity and only show 250 tpd utilization. I can see the posibility of ramping up from near by deposits.

The kicker is the possibility of finding a 100 million oz silver deposit on the property. This would also have a bunch of lead and zinc withit.

I like the odds here.

Kipp