Comments on: “This $4 Gold Stock … Will at Least Triple” John Doody

By: Neil DeFalco

Neil DeFalco — Tue, 17 Feb 2009 04:36:27 +0000

Cheers – From an Ex-Agora to a hater of promo dreams – GOOD Job. Oxbury Research doesnt write promos – we give it away for free.

By: jpardnak

jpardnak — Tue, 10 Feb 2009 21:38:04 +0000

better buy GFI and you will be happy

By: mfc

mfc — Fri, 06 Feb 2009 01:24:57 +0000

I would agree that John Doody is using gold equivalent ounces. That accounting is typical of gold companies.

The Dolores mine is significantly larger than what is reported. Canadian regulations control what companies are allowed to report for the size of their reserves and it takes a lot of expensive drilling to comply with those laws. Once a company can prove that they can mine profitably for 10 years (15 years in the case of Minefinders) and they raise enough cash to cover the investment, they cut back on the expensive drilling because most investors don’t care if a mine lasts 10 years versus 50 years. Dolores could last for another 100 years, but they aren’t allowed to say that legally unless they can prove it through drill results.

By: StockGumshoe

StockGumshoe — Wed, 04 Feb 2009 14:54:10 +0000

Thanks Peter. I wonder whether Doody’s estimate of 5 million ounces includes the “gold equivalent” of those silver ounces — that’s my assumption, since I think the official reserves note something like 2 or 2-1/2 million ounces of gold. I expect that the “gold equivalent” of those silver reserves is also between 2 and 3 million ounces, depending on the prices you use.

By: Peter Montgomery

Peter Montgomery — Wed, 04 Feb 2009 13:01:33 +0000

recently MFN was hammered after a negative analyst report and lost 20 % of its value

has since recovered well

Doody says nothing in this article about silver reserves – very sizable at 126 million ozs

this among others is followed in the Pot o’ Gold, see the web site for info