The Royal Bank, one of Premier's great forecasters . put out a new Estimate and Target for Premier on or about June 29th , 2011. If you care to read it.. you will find that they have upgraded their Resource Estimate for the Hardock Project from, what we all now know as 3,60,000 ounces, up to 4,500,000 ounces
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In my own Model and Calculations , I expect Premier to find a wee bit less the Royal estimates for this year.

They estimate another 900,000 ounces for this year... and I estimate only 800,000 ounces for my model.. I see no reason that, with drilling costing $140.00 per metre as per Tim Twomey's , ( Premiers Exploration Mgr. ) comments, to my questioning at the PG's last annual meeting, and seeing that this years Hardrock budget is at $11,000,000,, should we not reasonably expect they will drill around 78,000 metres.. Being conservative we might use the number of 75,000 metresbecause maybe fuel or something goes a little higher then forecast..
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Last year PG drilled 114,000 meters and found 1,300,000 ounces so I think it as reasonable to conclude they will do the same this year.. That 114,000 meters indicates an average of 11.4 ounces per meter drilled.
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Now, we can estimate that Premier could or should find another 11.4 oz. x 75,000 M = 862,500 ounces for their 2011 drilling program..

Being conservative again, I am staying with my 800,000 ounce figure, but I also realize that after spending all this money on the Hardrock to-date, they will not be stopping in the following years, or they will suffer from the shareholder's wrath and perhaps be looked at less favorable br those that recommend them so highly.
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The Royal Bank Estimates their Hardrock Future Resource Value ( for end of 2011 and in Time for next Springs PDAC ) at 4.5 million ounces at a total $780,000,000 which equates to around $ 173.00 per ounce. I will noe adjust my own year end estimate at 4,400,000 ounces to a total value of 761,200,000.

I feel my calculation will be reasonable close knowing that 6 Machines are now drilling on site, and not the eight that were on site, in the first 4 - 5 months of this years drilling program.. My previous completion time estimated was for Mid-Sept and I will revise my completion date till Early Nov. now that 2 machines have been let go.. Please note that PG could also add another few Million dollars and keep the 6 machines working to the Mid December Holidays, just like last years revisions. I will stay with my present 75,000 metres thoughts until I hear different.

So, my first conclusion is .. my own model Values the Hardrock at $761,000,000 , about $20 million less then the Professionals have calculated.. byut.. If we value my 4,400,000 ounces at $761,000,000, it equates to .. YES... the same 173 dollars per ounce.

So, if we are entitled to 30 percent of this $761,000,000 , my model says $ 228,300,000 for our GRC share of the Hardrock..

A very few days after this was calculated.. Premier runs with an offers to us, with their thoughts that .16 of a Premier Share is a good deal.. What.. I ask for WHO..

Yes , we would have to pay for our share of their Hardrock expenses that I estimate at less the 15 cents per GRC Share by the end of this years exploration but not until we want to.. Fair Enough I feel, but only, if they continue to explore the Hardrock, and not until after the feasibility study is completed, and only after that the same study shows it is economically feasible continue to forward to Mining and Smelting.. I sincerely believe this was part of the deal with Roxmark and that former Roxmark Shareholders felt what our previous Management negotiated at that time, and that Premier agreed to at the time of signing.

I will also bring to your attention that the Royal Bank also gives a Value of ` ONLY ` half a million ounces at our Brookbank Deposit and at only $ 50,000,000 .. or $100.00 per ounce...and not near the $173.000 per ounce that we see in the Hardrock Valuation, that they themselves have given us.

What happened to the other 200,000 or some.... Brookbank ounces..or the 50,000 ounces at Beardmore, the fully permitted Beardmore Mill Value, and the ounces found at Key Lake, along with a proper valuation of all the 100 percent owned property, that encompasses the other area projects..

And one must take into the account that GRC is also spending over 6 million on exploration this year on Key Lake, and Beardmore projects along with some also being done in Timmins.

Are they not realizing that all this will add ounces to GRC`s bottom line.

I think it is very important for us to all consider what they may have forgotten in their assesing of our Total Value..

I feel we should add in, for our own Calculations, the 250,000-300,000 ounces they might conveniently have missed..I also feel if their gold is worth $173,000 per ounce , then why is ours not the same value..The Gold certainly doesn`t care where it comes from ..

IF we add in our own values for what they missed at $173 per 0unce then Brookbank rises to $121,000,000 from the $50 million Royal sees. We add in Key Lake at $34.6 million and Beardmore at $8.6 million , plus what ever you dream the mill is worth today..& please note.. I don`t mean Scap Prices either.. Add in some future value for the Exploration Rights on all the property that we have 100 percent interest of.
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I feel it is worth and will also argue that it is over $100,000,000 .... and now.. add in the that Royal estimate for our 30 percent share of the Hardrock ...$228,300,000 and ` POOF `.. we have a $328,000,000 valuation according to my figures.

That`s very easily over $3.00 per GRC share and still without any take-over value even added in by the end of this year and YES.. in time for the SPRING PDAC..


So lets consider this offer for a person with one hundred thousand GRC shares in an example .. My future GRC Valuation for next spring is would be $300,000,000

If we give then all this.. we get 16,000 PG Shares for a present value of approximately $ 85,600,000, and that the Royal Bank estimates will grow to a value at $10.51 per share, to $168,171,200.

My bottom line is.. we are giving up $300,000,000 GRC future value ( not including any extra value for a Takeout ) for a $168 million PG Future Value, if these deal goes through at the present offer .

And you call that a good deal .. NO NO NO and NO

I have a better deal..
Pay us what we are really worth.. and we can buy our own PG shares and help support the PG price

I will also be turning down the PG`s present offer.

Note , the gold isn`t going away so l lets see an updated resource calculation at year end for Hardock, Key Lake, Brookbank, and Beadmore before we agree to anything..