Investors should not expect a spectacular resource estimate from...

Investors should not expect a spectacular resource estimate from Anthill and Goongarrie. They should instead look at the economic viability of the project and relevant financial numbers such as IRR, NPV and most importantly for a junior - THE PAYBACK PERIOD. Metaliko's objectives are four-pronged...in that they have multiple short term and long term projects at the go. This is from my post a while back..should give investors an outlook on what MKO will be.

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I have certain numbers that i am crunching based on their drill results and trying to decipher the mineralisation at Anthill and Goongarrie. To me, its not the size of their resources but the cost of extraction, turnaround time and the accessibility of infrastructure that is making this a huge near term opportunity. Mine, Truck, Treat operations [MTT] are fantastic profit making operations for junior firms and really boost the firm's bottom-line.

Let's look at a hypothetical resource number of 80,000 - 100,000 ounces of gold at Anthill. There is no need for much infrastructure as this would be a simple open cut extraction operation. I would estimate a total cash cost of $250/ounce of gold for the MTT operation. Management should, of course, be unhedged to the underlying physicals...As such;

Current gold prices of $1450/ounce will give a profit of?

[$1450-$250] X 80,000 ounces = $96 million
[$1450-$250] X 100,000 ounces = $120 million

This is just a conservative number but one can understand why James Searle is working towards 2 MTT operations at Anthill and Goongarrie in the near term while exploring for the mother lode at Bullabulling and Windanya.

MKO's Enterprise Value is just 9 million?!!

I seriously think that this will be the next AUC for 2011.