Ontex Resources (ONT Alberta) Message Board

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Gold/Mining/Energy : Ontex Resources (ONT Alberta)

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To: wharryr who wrote (414)	10/2/1999 5:23:00 PM
From: mark warburton	Read Replies (1) of 519

Well Rob I reviewed all the holes to date. Basically the best intercepts have taken place on the Brookbank deposit in both directions. hole 1 10.4 ft of .102 opt at 168 metres west side within a larger 42.32 foot intercept of .038. That larger intercept area had a comment attached stating that a good potential for wider core could be found here. HINT HINT... hole 2 11.45 ft of .227 opt at 507 metres. West side but deeper area. Hole 3 10.44 ft of .404 opt at 280 metres. West side. hole 10 9.97 ft of .14 opt at 315 metres. West side. hole 4 20.67 ft of .182 opt at 160 metres 300 metres East of Brookbank. hole 7 11.98 ft of .131 at 272 m east side. hole 8 6.56 ft of .11 at 245 m east side hole 9 6.14 ft of .176 opt at 200 m east side. Rob, you pointed out the continuity of the deposit which is what the majority of the excitement is with the Ontex property. The geology is similar to Hemlo in that it is a contact deposit between to rock zones sort of like a crack in the earths surface running right through the property. The deposit for the most part has been confined within the crack. There will be off shoots like what they have found at Cherbourg to date and they will surely find others on the property but for the most part they will continue to punch holes on an angle through where the crack should be underground and record the numbers. What is so surprising is the continuity everywhere. They can go East or West and expect to come back with a decent grade. The trick is to find the areas where there is wider spacing of the fault. At Hemlo this occurs in three different main zones which make up the three mines at Hemlo. All the previous work conducted on Cherbourg and Ontex show that the grade has for the most part been consistently higher the deeper you go and this property has never had a real deep hole sunk into it and probably won't for some time. On the west side we have a section of 42.32 feet of .038 that identifies a wider zone of the fault beneath the surface and that is what they are looking for. Step down and out from their and should the grades increase and extend at depth with richer grades you have a large pocket of resource very quickly. This property is very early in its exploration and for the most part the early results are very promising and have given every indication that a million ounces plus of resource will be very easy to accomplish. Yes we would all like to find a bohemeth deposit 2 feet beneath the surface 500 feet wide and deep but gold doesn't deposit like that and if that is the expectation of the early results we are hoping for too much too soon. With grade you also have to worry about total cost of mining. If you have zeros going to a level and then rich pockets you have to move a lot of rock to get to some decnt grade. If you have all right grade it pays your way to get to the richer zones of the deposit. Somebody threw the number .13 as the cut off point at me the other day. I guess that number adjusts with the price of gold but if we use that as a bench mark for now you will see that nearly all the holes are coming in at that or above. That bodes well for if the majority of the milled ore is done around cost all the higher grade pockets will amount to the net profits of the company longterm. If we also use the .13 cut off number then we can see that the value of the 332,000 ounces is sitting in the ground at a grade twice that number. Lets give them more time they are a little slow in banging out holes but I must say after waiting years it sure is progress when compared to the past. The airborne has also been flown and if all goes well we may have some new targets elsewhere on the property. 37 kilometres is a lot of land to cover. Anyway Best of trading Mark

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