It was mentioned today that Probe's capitalization is $10 million. From my last discussion on Probe's 5% royalty claims at Goldex they comprise about 80% of the proven and probable gold on the whole property. I know that Agnico-Eagle is drilling and following a gold trend to the east but still for this discussion let's remain with the 2006 map which clearly shows that our 5% royalty claims are on the great majority of the known gold.
In March of this year Agnico stated that they expect to produce on an annual basis 175,000 ounce of gold at a cash cost of $230 an ounce. Gold at today's last sale is $882.50 times 175,000 ounces of gold production equals about $153,000,000 less production costs.
Without figuring in any costs but using a gross amount for Probe's 5% royalty, assuming the production is coming from our royalty claims, this equals $7.7 million just to be broken down with costs for a years production. Agnico has stated that the mine will be producing for at least 10 years. Sean Boyd has inferred they are opitmistic concerning expanding the reserves at Goldex. At LaRonde the deeper Agnico drills the greater the gold per ton they find.
Jim Sinclair says $1,200 gold is in the cards for this year. At $1,200 Probe's best case scenario for a 5% gross changes to $10,500,000.
It seems to me, excluding the ROF claims held by Probe and the potential that they represent, the share price of 30 cents alone values the royalty asset at less than half of its true value and our claims, well, at absolutely nothing. Oh yeah, we also have a fair amount of cash to boot.
What do TD and Anonymous have up their sleeves for Probe shareholders?
