If my resource calculation numbers are close and SPX comes out with a resource number in the 700,000 ounces range, we are probably looking at a 3 to 4 bagger here in the short-term. Here are 2 methods I have used to come up with this evaluation.
1. Many junior companies are being valued at around $35 per ounce in the ground. So using this method the math looks like this:
35 x .7 million oz = $24.5 million mkt. cap.
24.5 x .49 = $12 million mkt cap
12 / 3.9(current cap @ .03 sp) = 3 bagger, or 9 cents stock price
2. I know of a Junior with 700,000 oz (half indicated, half inferred). This jr. has a current mkt cap of 24.57 at close on Friday. They own 75% of the play.
24.57/.75 = $32.76 million mkt valuation of total resource
32.76 x .49 = $16.05 million cap if SPX gets same valuation from mkt.
16.05/3.9(current cap @ .03 sp) = 4 bagger or 12 cents stock price
To see my resource calculation estimate for SPX, refer to this:
http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=134400