Sierra Gold Corporation Valuation of Gold Property Translates to $7.42 per Share Dec 13, 2006 9:50:00 AM 2006 *********wire, Inc. LAS VEGAS, Dec. 13, 2006 (PRIME NEWSWIRE) -- Sierra Gold (Pink Sheets:SGCP) commissioned Geologist Alieu Madhi to do a report on the potential gold values of the Pampana North property. The report estimates the gold reserves to be just over 936,000 ounces. At $626.50 per ounce (Dec. 11 second London fix price), the value of the gold reserves is $586,404,000. With 79,031,973 shares currently outstanding, the gold reserves have a per share value of $7.42 before calculating the costs of extraction.
Madhi's report is based on extensive bulk sampling work completed by the National Diamond Mining Corporation (NDMC), a Sierra Leone government operated mining company. He combined figures from Manke's report with work done by NDMC. Manke's gold grades were over three times higher than the grades used by Madhi to calculate the gold reserves.
Mr. Madhi (BSc, MSc) holds degrees in Geology and Engineering Geology from England. He worked as a Chief Geologist for NDMC on several of their projects. For over 30 years, he has consulted for numerous government and international mining companies.
The company will continue its comprehensive testing program to further corroborate Madhi's and Manke's reports. Initial bulk sampling tests have produced higher gold grades than the gold grades found in both reports. The company has also begun dialogue with other mineral companies to mine the property under a joint venture agreement.
Posted by cmsrem on :
Dipping for run
Posted by cmsrem on :
Almost 10x average volume already
Posted by hbomb on :
.16x.17 2x2
Posted by cmsrem on :
79,031,973 OS, wont take a huge amt to for this to run
Posted by hbomb on :
quote:Originally posted by cmsrem: 79,031,973 OS, wont take a huge amt to for this to run
Any idea on the float?
Posted by cmsrem on :
Trying to find
Posted by PCola77 on :
Some late day buying here. Last 18 trades all at the ask.
Obviously the PR is a bit misleading, but this could go with some more buying pressure. Either of you ever find the float numbers?
Posted by PCola77 on :
And of course I jinxed it...
Posted by cautionupahead on :
Why do you think the PR is misleading? I'm guessing because it says $7 per share before recovery costs. If after all costs it's $1 per share profit, multiplied by a 10 multiple you have a price per share of $10. Even if after all costs it's only 10 cents per share profit, you still have a $1 stock! The market hasn't taken notice of this stock yet, when they do this thing will hit the moon. It moves on air, which tells me the float is pretty low. Looking at the chart it seems to have big swings intra day, so todays action is of no big surprise. The Ihub board only has around 30 posts about this stock, so it's still way under radar, and way under valued.IMO
Posted by PCola77 on :
For exactly that reason. Mentions $7 before recovery costs but not even an estimate of recovery costs. That was undoubtedly intentional.
Reminds me of the PGPM press release where they claimed to have the potential for some ridicuous price per share but when people looked at it hard, they were basically saying if every square inch of land they owned was fille with oil, THEN it would be worth the price they quoted.
quote:Originally posted by cautionupahead: Why do you think the PR is misleading? I'm guessing because it says $7 per share before recovery costs.