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Author: Smufty2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36813  
Subject: For Skypilot Date: 2/14/2013 12:08 PM
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Had a moment to quickly look at the document for Brewery Creek, and here are my hasty thoughts.

This was a working mine with Viceroy Resources until 2002 when It ubecame uneconomical because of the price of gold. It would be interesting to look at Viceroy's numbers back then and then to guess whether the easy pickings were taken or if better recovery is a possibility today. It does imply that roads and infrastructure should not be a problem, nor permitting.

But from the paperwork, here is what I note
Low grades but it is open pit
Only inferred and indicated resource numbers were given, not proven and probable. A year or two ago the markey valued proven and probale at an average of $160/oz. Indicated and Inferred were valued at $30/oz and $20/oz respectively on the average. I suspect that today those average valuations are even lower, but using them gives a project value of roughly $24 million. On face not much, but these are steeply discounted values which is all you should really use at this early stage.
I have no idea how to go about my usual calculation of market cap per oz gold on a streamer without a whole lot of numbers from each and every asset they have.
Obviously there is no PEA nor bank feasibility study at this point.

Summary superficial conclusion - not much to get excited about at this point. For mines at this point there is not usually much to get excited about unless some bonanza grades or a vast property are being found - that is what I buy when I buy a miner at this stage.

Have not looked at the Taylor silver project yet.

Smufty
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