This miner is in the great state of Alaska, located very close to Faribanks. They are sitting on 10.6 Million ounces of gold in the M&I category and another 2.7 Million in the Inferred category. If put into production, according to the most recent Prelim Assessment, it would have a mine life of approximately 13 years and a production of 833K ounces per year. Hmm, at current prices around $1500 or so, that's around 1.25 billion a year. Not too shabby.
Fully diluted the company has about 91 million shares (good tight structure), and at $1,500 gold has an IRR of 54.4% and a NPV of of 4.9 billion dollars.
The company has been drilling on the property since 2006, and is currently operating a 55,000 drill program for 2011. The deposit remains open to expansion, thus the agressive drill program for 2011. If you find more gold, the economics just get better.
Here's the chart:
The company is International Tower Hill Mines LTD, and has a good chart.
Stock has been in this range since November of last year. It seems to trade between 7.80 and 10.50. From here, you could squeeze out a nice 27% gain from here if it makes it back to the top. Looking at the candlesticks you can see an excellent hammer this last thursday. That's when I added this stock to my portfolio. I've traded in and out of this stock for the last couple of years.
Here's the link to the website where you can access the latest presentation and fact sheet:
http://www.ithmines.com/investors/corporate_marketing/
As always, do your own due dilligence.
FD: I am long this stock and haven't been paid by anyone to promote it.
Until the next time...
Fiat Doubter
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