The Fruits of the North..
Aurelian Intersects 107.5 Metres Grading 5.01 g/t and 173.0 Metres Grading 4.73 g/t of Gold in Drilling, Extending the Strike of the FDN Epithermal Gold-Silver Discovery by 200 Metres
TORONTO, ON Aurelian Resources Inc. ARU/TSXV, today announced assay results from three additional drill holes from the buried epithermal gold-silver discovery at Fruta Del Norte (FDN) on its wholly-owned Condor Project in southeastern Ecuador. These include a 107.5 metre interval grading 5.01 g/t of gold (Au) and 7.1 g/t of silver (Ag) in drill hole CP-06-64, a 173 metre interval grading 4.73 g/t Au and 6.8 g/t Ag in drill hole CP-06-65 and a 191.72 metre interval grading 3.97g/t Au and 6.4 g/t Ag in CP-06-66.
Maps, cross sections, photos and full gold and silver assay data from this and previous press releases may be viewed at aurelian.ca.
High grade gold mineralization has now been shown to extend over a strike length of approximately 600 metres of the FDN discovery." says Aurelian President & CEO Patrick F. N. Anderson. "hile one rig continues to test the FDN deposit, the second rig has been moved by helicopter approximately three kilometres to the south to test the Las Arenas prospect, a promising target within the same pull-apart basin structure that hosts FDN. We will deploy additional drill rigs, as they arrive on site, to the FDN deposit and other regional targets".
*********************************
Strike Length Considerations -->
Twenty-seven diamond drill holes have been completed at the FDN prospect to date. The present and previous press releases describe the results from 17 of these holes. Drilling continues to target the epithermal system. Visual logging of core from drill holes without assays indicates that the mineralization continues northward to line 9583800N. This gives a strike length of at least 700 metres to the FDN mineralized
structure.
*************************************
quicky analysis: These dimensions supplied by the company would give a mineralized body of approximately 30,000,000 short tons maximum, assuming 100 metres in width and 150 metres in depth. If it were mineralized at a grade of 5 grams per tonne uniformly, or .145 oz/short ton, then it would contain 4.5 million ounces of gold. A bold projection could be that it will end up with north of 12 million ounces after about 6 to 9 months of exploration. But at present to suggest that it contains much more than 5 to 7 million ounces is very speculative. With 33.4 million shares out and having to issue 10 million in order to develop the deposit, we may take a fair stock price, assuming a 6 million ounce deposit is exploitable as 15-18 dollars per share in production.
If they end up mining a million ounces per year from this deposit and make 30% after taxes on the production, then they would be worth 50 dollars per share CDN. To get to that level, they have to find 15 million ounces or more. Spec value is something else again. What are the chances that they can double current depth and double the strike length of the deposit?
I would say fair, but I doubt it will hold more than 225 feet in width or more than 4 grams average.
************************************** |
