How does Geologix Explorations main project Tepal stand among other gold deposits? Here’s the answer, the lower in the graph the lower the cash cost and the further to the right the higher production:

tepalcomp45

Tepal will produce about 117,000 oz gold/year at a cash cost below $200/oz net of by products, as you can see there’s no mine in the world that comes even close to that. It may not be a very large gold mine yet, but the upside to this project is very good.

“the upside potential is pretty much infinite, we have about 172 square kilometers, we just sort of touched exploration drilling on that. We have right now about 4 million oz in the ground and we feel we have enough to build a mine there” – Dunham Craig

Geologix also stands out when it comes to total after tax cash cost per once, see chart from the latest presentation here:

Skärmavbild 2015-02-05 kl. 08.50.16

If this company manages to bring Tepal into production they will be able to grow organically through exploration, if the resource grows the production and LOM will probably grow as well. Besides the insanly low market cap at 0,04 cad that is no where near true market value this upside in exploration adds even more upside potential long term for this stock.

For example, if we compare Geologix to Torex Gold, Torex have a higher NPV but a lower IRR, the companys market cap is about $800 m, so about hundred times higher than Geologix. I’m not saying Geologix should trade as high as Torex today since Torex is financed to production. But Geologix at $6 million does not reflect the true value here.

Another Mexican gold company Primero which has a similair productions profile to Geologix trades above $1 billion i market cap, if Geologix comes anywhere near that it would be in the 10,000% range. So here we have a world class gold, copper deposit with massive upside potential that is worth only $8,5 million which equal $2/oz gold, it does not get better than this imo. This is a great opportunity to say the least.