Replies to post #26730 on Value Microcaps Junior Miners

[dr_airtime]

myg.ax - Bobwins

Worth a look. Spent about 15 minutes thus far and opportunity warrants further investigation in my books. You taken a good look yet?

Pros:
- High profile lender (Credit Suisse) likely to provide project financing post-feasibility
- Low M/C. Potential triple in +1-2 year time frame to $100 MC based on other 50,000oz producers currently in ramp up I am familiar with (BZA.V,MMT.V), Need to take project financing into account
- Former Producer with existing infrastructure
- Close to major infrastructure and worfforce
- Short Time frame to feasibility with existing infrastructure and known mineralization, metallurgy, property background
- Existing infrastructure
- High grade - 4-6 g/t for initial open pit.
- Other small nearby deposit can provide cash flow in year one with 22k oz and plan to bring this into production before main deposit.
- $AUD tracks $CAD closely for us Canucks so F/X change exposure on holding is limited for northerners.
- Specultive move in Fall 2010 so stock could become in-play again leading up to production

Cons:
- High Share count
- 10% Net Profit Royalty
- Scoping Study cash costs of $561 are not super low with by-product credits to begin with as scoping studies are generally +/3 30%
- 4-6 g/t is not super high for u/g
- Low share price impediment to institutions
- Dependent on successful debt project financing as equity will blow out share count.
- 50k oz or first year of production hedged due to project finance.