Grenville Gold's (TSX-V, GVG) Silveria mining project unites for the first time four past-producing mines (silver, gold, copper-lead-zinc was produced): Pacococha, Millotingo, Silveria and Germania. On or before November 30, 2008, Grenville will very likely own 50% of Silveria and maintain this percentage ownership (Journey Resources would own the other half). The following is in reference to my $2 Billion Potential Target for Silveria blog post (98 KM of Underground Goodness): An update to Silveria's high grade ore prices...
High Grade Ore
A. Conservative ore grading (conceptual target). B. 1991 Pacococha
production grade. C. 1991 commercial ore reserves. D. 1991 Pacococha
uncommercial ore grade. E. 2007 average sample ore grade.
1. Resource prices (15/12/2007):
$793.10/oz Au, $13.81/oz Ag, $2.91/lb Cu, $1.12/lb Pb and $1.05/lb Zn.
2. Resource prices (23/02/2008):
$944.60/oz Au, $18.00/oz Ag, $3.77/lb Cu, $1.48/lb Pb and $1.12/lb Zn.
3. Resource prices (30/02/2008):
$974.30/oz Au, $19.81/oz Ag, $3.84/lb Cu, $1.52/lb Pb and $1.22/lb Zn.
A. 4 oz Ag, 1% Cu, 2.5% Zn = $177.27/t (A1) = $216.84/t (A2) = $231.14/t (A3) = A3/A1 +30%; A3/A2 +7%
B. 3.61 oz Ag, 1.7% Cu, 0.76% Pb, 3.08% Zn = $248.98/t (B1) = $307.12/t (B2) = $323.74/t (B3) = B3/B1 +30%; B3/B2 +5%
C. 4.49 oz Ag, 1.75% Cu, 1.47% Pb, 4.13% Zn = $306.18/t (C1) = $376.21/t (C2) = $397.44/t (C3) = C3/C1 +30%; C3/C2 +6%
D. 2.58 oz Ag, 0.54% Cu, 1% Pb, 4.4% Zn = $196.82/t (D1) = $232.59/t (D2)= $248.68/t (D3) = D3/D1 +26%; D3/D2 +7%
E. 0.409 gr. Au, 212 gr. Ag, 0.693% Cu, 1.83% Pb, 5.43% Zn = $319.90/t (E1) = $386.49/t (E2) = $413.87/t (E3) = E3/E1 +29%; E3/E2 +7%
For Cash Flow I will use $260 per ton based on previous information and low production costs (US$45/t milled - 43-101) and good recovery rate (90% - 43-101).
Joint Venture partners plan to extract 500 t/ day (I contend 50% Silveria ownership for both GVG and JNY).
Each:
500 tons/day * 300 days * $260/t *0.5 = $19,500,000
Conservative P/E of 6 * $30,000,000 *0.5 = $117,000,000 market cap
Conservative P/E of 8 * $30,000,000 = *0.5 = $156,000,000 market cap
Grenville Gold
Company Share Structure (as of February 6th, 2008)
Issued and Outstanding: 31,984,845
Warrants: 5,479,533
Options: 3,900,000
Fully Diluted: 41,364,378 shares
Current $11,168,382.06 market cap on a fully diluted basis ($0.27 * 41,364,378).
Journey Resources
Company Share Structure (Latest Company Overview - January 2008)
Issued and Outstanding: 37,244,187
Warrants: 7,420,260
Options: 2,633,373
Fully Diluted: 47,297,820 shares
Current $13,716,367.80 market cap on a fully diluted basis ($0.29 * 47,297,820).
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Grab Samples reported June 4, 2007 by Grenville Gold Corporation
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Sample # Vein Au g/t Ag g/t Cu % Pb % Zn %
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PA-17 Germania 0.325 274 3.90 3.65 4.92
PA-21 Reserva 0.322 103 0.13 2.32 19.70
PA-28 Ernesto Segundo 0.717 2200 0.12 6.79 8.85
PA-34 Millotingo 2.63 401 0.01 0.04 0.07
Resource prices (30/02/2008):
PA-17 = $769.50/t
PA-21 = $694.30/t
PA-28 = $1,899.38/t
PA-34 = $341.85/t
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$2 Billion Potential Target for Silveria; copy and paste the following:
http://www.stockhouse.ca/blogs.asp?page=viewpost&blogID=1038&postID=45106Disclaimer: do your due diligence.
You fill in the blanks.
I_Luv_GVG
