I am not an expert on the technical side of this stock, but when i review the charts a while back I have to agree it is almost identicle to the last SP a few months ago. In my opinion we should be due shortly to a nice jump in the SP. Here is something else to mull over that supports the technical side of the equation.
Drv Buyout Estimate:
Here is something to think about while we are waiting for drill results. These are some estimated values. Some of the costs may be off a bit, so feel free to correct my estimated results.
Assuming a pit size of 600m (N/S) x 350m(E/W) wide x 500m(D) and a rock density of approx. 2.5 t/m3 (based on rock types).
600 X350 = 210,000m2 X 500m = 105,000,000m3 (est. current volume)
105,000,000m3 (volume) X 2.5 t/m3 X 1,000,000 = 2.625E+14 (est. ore body in grams)
2.625E+14 / 1000 X 2.25 = 5.90625E+11 (est. ore body in pounds)
.6% (est. % copper low side) X 5.90625E+11 (est. ore body in lbs) X 4.00 (est copper price) =
$14,175,000,000 (ore value)
What a company is willing to pay @ buyout:
$14,175,000,000
($ 1,701,000,000) (cost of mining – X .12)
$12,474,000,000
$ 9,979,200,000 (cost of processing ore – X .8)
$ 997,920,000 (what a major is will to pay – X .1
$ 598,752,000 (tax 60% may be a bit high)
$ 399,168,000 (Value to Drv shareholders)
399,168,000 /177,369,000 shares = $ 2.25/share (may be on the low side with our current grades)
$ 3.03/share (.86% combined moly/copper)
Things to consider:
· This is the current estimated size of the Aguila ore body, not including expanding Aguila East, West, passa. or all the other properties
· Drv will have to expand the E/W and N/S to be able to increase current depth which is still currently open: (you need a pit larger than the current estimated ore body size to mine the depth, but you also need mineable ore, you do not want to mine dirt with no ore (cut off grade around .2%, which I think we have so far from some of the results)
· Prices of copper, moly and other minerals are changing daily which have an impact on price
· The stock price really does not reflect what is in the ground currently
