That's achievable as any above average grades will cause interest but with 4.5m share available and I believe even less as I know a private group holds loads then a even better rise This is just waiting for that catalyst which is the results of this drill campaign and then we plan the next
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Price Target: With 184m shares outstanding would suggest 25% of the US$19m NPV is £3m or 1.6p/sh but I would suggest the market would assume that BMV would earn into its 50.1% so that becomes £6.3m or 3.4p/sh. However, based on those market-based EV/reserve metrics, and assuming the additional 300koz resources are converted to ore reserves, it suggests a potential valuation for the project of $30m as a developer re-rating up to $84m rated as a producer. This would give a range based on 50.1% interest at between £10m (5p/sh) and £28m (14p/sh). It’s hard to give a definitive value but as a sense check, a back of the envelope DCF, based on recovery of 400koz and the same capex and cost metrics as the PFS would give a NPV (5%) of $86m. ie. an implied project value at 50.1% interest to BMV of £28m (15.2p/sh). This would add +10yrs to LOM, although the reality is that the throughput could be increased, which would increase the economics, but this is just a conservative estimate. For the copper concentrate trading business, Optiva has derived a valuation of $7.3m or £5.2m (3p/sh) based on 5 percent discount rate over a 5-year period using a DCF model. It is important to note that the Copper Concentrate business will help manage cash flows for the Company and the Batangas Gold project will provide the significant upside return. This would imply a potential combine price target of 18.2 pence per share.
The cost of exploiting the gold is almost half of its worth, and not all of the metal can be accessed. However, if even a tiny proportion of what is believed to be there is gathered, its potential value is staggering. "An estimate at this stage might be somewhere in the region of 15m to 20m ounces of gold," says Prof Conroy. That would put the value of the resource in his licence area alone at £11bn (13.2bn euros). There are other working mines in Northern Ireland. The Canadian company, Dalradian, has an operation in the Omagh area of County Tyrone, and the Tellus survey has established a number of other significant gold trends across the country. "It has taken us many years," says Prof Conroy, "as significant exploration does tend to take. "But it's great now to be at the stage when you can begin to think about bringing in a mine and pouring gold."
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Somebody showing confidence with no stock about Significant Shareholdings Professor Richard Conroy: 2,430,657 (22.07%) Patrick O’Sullivan: 2,357,456 (21.41%) Metal Tiger plc: 885,675 (8.04%) Shares (Issued & Outstanding): 11,013,537 (5 May 2016), 6,345,566 (57.62%) of the Current shares not in Public hands.
The drilling programme on the Glenish gold target will comprise a minimum of three drill holes. Glenish is a large, 147 hectares, gold target located 7.5km southwest of Clontibret, at the junction of two major geological structures – the Orlock Bridge and Glenish Faults. Previous channel sampling has shown levels of up to 1.3m@9.4g/t gold. The programme, which will also fulfil work commitments on the licence, is designed to test for the possible presence of gold-in-bedrock in the southern portion of the Glenish target area. Drilling at the Glenish gold target will be followed by drilling on the Company’s combined Clay- Lake, Clontibret gold project where the Company has a projected target resource of 5 million oz. gold. This release has been approved by Kevin McNulty PGeo, who is a member of the Company’s technical staff, who holds a BSc/MSc in Geology and Remote Sensing, in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects. Professor Richard Conroy, Chairman, commented: “I am very pleased that we have commenced our current drilling programme. I look forward to the results of the drilling on our Glenish gold target and on the combined Clay Lake-Clontibret gold project”.
For the copper concentrate trading business, Optiva has derived a valuation of $7.3m or £5.2m (3p/sh) based on 5 percent discount rate over a 5-year period using a DCF model. It is important to note that the Copper Concentrate business will help manage cash flows for the Company and the Batangas Gold project will provide the significant upside return. ***** This would imply a potential combine price target of 18.2 pence per share. *****
Statement re. share price movement The Company notes the increase in the Kolar Gold's share price during today's trading together with the higher than average number of shares being traded. As stated in the Company's announcement on 30 March 2016, the board of Kolar Gold plans to pursue opportunities that are allied and complementary to the strategy outlined in that announcement which it can develop in parallel with its gold exploration and development interests. The Company also announced that it is seeking opportunities to raise further capital in order to develop these opportunities in conjunction with its interests in Geomysore Mining Services (India) Private Limited. ******Since that time, the Company has held discussions with a number of parties and these discussions are continuing. Further announcements will be made at the appropriate time.
Merger discussions with Deccan Gold Mines Limited ("DGM") have been in abeyance while DGM has focused on raising its own funds through a rights issue on the Bombay Stock Exchange which was completed on 9 November 2015 and raised £5.10 million. The logic of the merger, to create India's largest listed gold exploration company, remains strong and GMSI has indicated that discussions are likely to be renewed in 2016. Kolar Gold shareholders will be kept fully informed of developments. The achievability of obtaining a listing for GMSI shares either through a merger with DGM or by a listing on the Bombay Stock Exchange will only become clearer once the economic feasibility of constructing a mine at Jonnagiri are better known. BGML The revival of the BGML Gold Mine continues to be discussed at state and central government level but the form and timing of any tender remains uncertain despite previous indications that a process was likely to commence. The Company continues to pursue discussions with Government agencies, its partners and interested parties but the form and timing of the tender for this asset have still not been confirmed by the Government. Strategic Review Against this background the Company has taken further steps to preserve cash to extend the life of the Company beyond the end of 2016. The Company is reviewing its strategic options with the intention of considering all available opportunities for maximising value for shareholders. These include · exploring the possibility of realising the value of its investment in India in an orderly manner, including the possible sale of one or more of the Company's assets or subsidiaries; · investigating mining opportunities outside India, where Kolar Gold as a vehicle could be an attractive platform for current and new investors; and · seeking new investors who may be prepared to invest in the share capital of Kolar Gold.