Explor Resources Inc. (fka EXSFF)

[Gregory_]

According to LSG's website they have at Timmins West 3,883,000 oz.

280 million dollar market cap / 3,883,000 oz = $72.11 / oz

If you add the $102 million in debt:
$280M market cap + $102M debt / 3,883,000 oz = $98.37 / oz

This does not include the 2.5% NSR with Franco-Nevada. If you include that, take 2.5% away from the 3,883,000 oz. = 3,785,925 oz. (This is of course, not exact, but just to see what it looks like...)

$280M market cap + $102M debt / 3,785,925 oz = $100.90 / oz

An additional thing to keep in mind is that it seems like much of the gold at LSG and quite a bit of EXS's is >500m deep, which makes it more costly to extract.

Now, according to the interview posted with CD, inferred should be priced at about 50% less the indicated. He agreed in that interview that $100 / oz is reasonable for the indicated and that $50 / oz is reasonable for the inferred.

That leaves us at a potential $60M market cap (200K indicated * $100 + 800K inferred * $50), which is what they said in the interview.

LSG Timmins West Mine:
2,737,800 oz (all categories)

(Note: The NRH report on page 7 indicates that LSG's Timmins West Mine only has 1,870,000 oz in all categories.)

http://www.lsgold.com/Mines-Projects-Properties/Review-of-Properties/Timmins-West/Timmins-West-Mine-Operating-Mine/default.aspx

LSG Gold River Trend:
1,145,200 oz (all categories)

http://www.lsgold.com/Mines-Projects-Properties/Review-of-Properties/Timmins-West/Gold-River-Trend-Property-Exploration/default.aspx