JDN - Market Capitalization Per Oz Of Gold Equivalent


Silver Coin Project - NI 43-101 Resource Re-Estimate (Minarco MineConsult, September 16, 2010)

At a .30 g/t Au cut-off grade:

Measured Resources:

4,036,200 t @ 1.47 g/t Au, 7.05 g/t Ag

= Au: 191,300 oz
= Ag: 915,400 oz

Indicated Resources:

23,127,400 t @ .87 g/t Au, 5.79 g/t Ag

= Au: 644,300 oz
= Ag: 4,303,500 oz

Inferred Resources:

29,653,200 t @ .69 g/t Au, 6 g/t Ag and 56,816,800 t @ .19% Zn

= Au: 655,200 oz
= Ag: 5,723,000 oz
= Zn: 242,450,200 lb


Silver Coin Project - Market Capitalization Per Oz Of Gold Equivalent

At today's gold, silver and zinc prices:

- Au: US$1385.50/oz
- Ag: US$28.55/oz
- Zn: US$1.0324/lb

The number of gold equivalents in the September NI 43-101 resource re-estimate is:

- Au: 191,300 oz Au-Eq. + 644,300 oz Au-Eq. + 655,200 oz Au-Eq. = 1,490,800 oz Au-Eq.
- Ag: 18,863 oz Au-Eq. + 88,679 oz Au-Eq. + 117,930 oz Au-Eq. = 225,472 oz Au-Eq.
- Zn: 180,661 oz Au-Eq.

Total: 1,490,800 oz Au-Eq. + 225,472 oz Au-Eq. + 180,661 oz Au-Eq. = 1,896,933 oz Au-Eq.

JDN's 80% interest = 1,517,546 oz Au-Eq.

With a current market capitalization of:

183,152,268 x CDN$.285 = CDN$52,198,396.38

The market capitalization per oz of gold equivalent is:

CDN$52,198,396.38 / 1,517,546 oz Au-Eq. = CDN$34.40/oz Au-Eq.


Yes, only CDN$34.40 per oz of gold equivalent! ...and that during the mother of all gold bull markets!

Also, keep in mind that this number is still without the expansion from the in-fill and step-out holes of the most recent drill program!


Guy