New potential investor here looking at the where this may be valued at prior to or in an acquisition. I have read back through the posts here and through the estimates of ounces and was hoping for some other thoughts on the estimated ounces in the ground.

In establishing comparable valuations for gold exploration companies (hence no producers which command a higher in situ valuation per ounce), the average I have found is around $50 per ounce (maybe a small bit higher depending on the oz/t but definitely as high as any intial valuation could possibly justify with no reserves) source: http://www.goldminerpulse.com/blogs/junior-gold-explorer-valuations.php

http://www.miningalmanac.com

Here are some quick calcs then based on 150mm fully diluted shares (which is fully diluted shares a/o Aug 31, 2011 plus an estimate of future shares issued for calculation purposes).

1. 1,000,000 ounces = $50,000,000 valuation = $0.33 per share

2. 2,000,000 ounces = $100,000,000 valuation = $.67 per share

3. 5,000,000 ounces = $250,000,000 valuation = $1.67 per share

4. 10,000,000 ounces = $500,000,000 valuation = $3.33 per share

The value per oz above was based on companies with 43-101 with both M&I and PP&I to arrive at that valuation.

Based on the information I have heard in presentations and have read in various locations, the potential for a larger deposit is there and based on the current valuation it would seem that either someone has a very strong reason to believe this is a 10,000,000 oz plus deposit (which is exceptionally rare and given their stage of drilling development would seem to be at least 12 months if not 24 months away from being able to show in a 43-101) or it has been propped up by massive IR efforts.

For those who have more history in the stock I would love to see some of the reasoning or theory behind a 10,000,000 oz plus target. Also, given that I could not find (def doesn't mean there hasn't been several I missed) any acquisitions done without proven reserves, is there any estimation on timing of a 43-101 by the company? It doesn't appear that there has been sufficient deeper drilling to establish one but I may be mistaken.

TIA