Majestic Gold Corp (MJS)

[MisterB]

That new mill looks pretty good - and it's been in operation since April 27th of this year. Looking forward to the Q Results due out at the end of the month...

I am expecting (conservatively) $6 - $7M as they were commissioning the mill in 2 of the 3 months in the Q, at 3000 tpd.

Assume 660 oz per month for the first month (which the CEO said was their average per month in the Nov 2010 interview), then triple that, per month, for the two months the mill was being commissioned (TPD went from 1000 tpd to approx to 3000 for the last two months.

Assuming grade remained constant (which is still low for them) at .5 g/t
Assume the price received per oz was $1500 (slightly below average for that period (Apr-June)

Total: 4600 oz. $6.9M in Revenue.

Of course, they will still show a loss because 50% of net profit from gold production is going towards paying off their partners for their portion of mill construction...

Either way, great progress... and it will only get better from here as they ramp up to 7400 TPD and with gold prices over $1800...

Certainly an undervalued keeper with takeover potential. If the public finally sees this story, this stock is in for a big jump trading at just 20% of NPV...

B