the Resource Estimate of 400,000 0z. of gold form just 199 drill holes, most of which were shallow (180 m.) and about 20 deeper (300 m.), is indeed extremely encouraging.
we know that this deposit is still open horizontally and to depth.
and we also know it represents less than 3 % of our claims stretching over 17 k. in a preferred area of claims of many other companies.
a year ago we had individual investors and proffesionals contemplating estimates of 6 million oz.: today, those hopeful estimates have become very plausable indeed.
no one should expect a 2 million or more oz. resource to be confirmed from 199 holes:
@ 150.00 gold in the ground X 400,000 0z. = $60 million = 6 X's our present market cap
this scenerio would bring fair value for GNH to about 50 cents based on this first Resource Estimate. (without any consideration for the rest of our claims and prospects going forward as we expand our resource with further tonnage and drilling)
from here we have 2 alternatives:
- raise money for more drilling
- or: raise money for a small mill to mine gold at surface and use the proceeds to do more drilling.
i like the mill alternative:))
particularly in our present overall market conditions.
cheers ...danny
