in ground valuation iron ore, page-6

Very interesting thread. I hold CAP which are just about to release their maiden JORC for a magnetite project in broken hill.

Could someone evaluate what the JORC would be worth in market value given that:

1. CAP has a 20% free carried interest in the project
2. The JV they have entails that CAP pay no capex up to a net production for the company of 4MTpa
3. The opex for the project is expected to be about industry standard for magnetite mines
4. The JORC is expected to be about 1Bt @ 20% DTR to a depth of 250m
5. The area has an expected resource size of around 3.5Bt-6Bt @ 20% DTR
6. Confirming a JORC resource will confirm the transaction of about $40M in cash from BMG (JV partner, a non listed company)

Thanks!