rhenium and gold and copper, page-5

Yep that's right Carlin.

Now, pencils out for a rough estimate of Cerro Del Gallo...

As at 17/06/08: 43% increase in Measured and Indicated
resource to 461Mt and 28% increase in
Measured and Contained metals to 4M oz Au,
163M oz Ag and 1.1B lbs Cu PLUS 166Mt of
Inferred Resources containing 0.6M oz Au,
39M oz Ag and 356M lbs Cu.

IF, and that's a huge IF, all of the resource was mined,
it would equate to values of $4.2B Au, $2.4B Ag and $3.6B Cu for a total of USD10.2B at current prices. Divide that by 394,000,000 shares for USD25.8 per share. Even allowing half of that for plant and infrastructure, USD12.5 per share over a 10 year mine life equates to USD1.25/share pa.

But wait! There's more. Further drilling is underway at C del G and other targeted areas within King' tenements and imho the resource will expand. Although Au grade is low at 0.2% and 13% Ag, there's plenty of it and has a low strip ratio of only 5.7.

Unfortunately, this is the real world and today they'll be lucky to hold on to 14.5c. Hope this gave you an idea of KMN's Mexico project value.


Please DYOR, I failed Crayons 101.