I realized early on that NES was severely undervalued compared to Torex and sold most of our TXG position at about 3 or 4:1 leverage to NES..

that was assuming NES would have about the same 3 to 4 million ounce resource as TXG. After the initial hits on the breccia I realized NES was indeed something special

I now believe NES will have between 7 and 10 million ounces at Ana Paula and possibly many more at apetlanca

I think TXG will be able to prove up at least 5 million ounces as well but the share structure of TXG, (although fairly well held institutionally) does not lend itself to the same appreciation possibilities as Newstrike..

Giving NES an approximate evaluation per ounce as TXg it should be about $5.20 based on TXG cap today.. assuming double TXG ounces we get pretty close to the 10..75 number talked about last week

potential suitors will be doing a lot of detailed calculations based on drilling to date and coming up with their own in house valuations. all the info is out there using filos and torex metrics an accurate valuation of nes will show it is very much undervalued and we expect massive share appreciation as value is realized.

translation: anyone worth their salt doesnt need a 43-101

During the exploration phase most money is made between the initial discovery and drilling out the orebody.

I think NES will be sold long before the development phase at peak value!

caliche

October 22nd, 2011
Categories: Uncategorized . Author: caliche