GOZ post on SH
16/19 hole are clear commercial/widths grades at 50- 300 costs, the remaining 3 are commerical at about 500-600 oz costs, with prudent level of mine automation, average grade/widths costs should be quite good due to the high percentage of bonaza ore, lending itself possibly to some underground cut and fill bulk mining, rather than underground narrow vein mining techniques, if preconcentrator is used. in particular we continue intersect a very, high percentage of > 1/3 tonne veins with excellent frequency including some outrageous bonanza grades of nearly 2 oz/tonne. really its these high grades and their relative frequency, that 'make' the mine.
so this should get us to a 1 million oz resource fairly quickly. too bad they didnt do more drill along strike. i think the market was looking for more widely spaced on strike drills but perhaps the drift and cross cuts are not complete enough.
you can say, professionally speaking that they have a 10 year commercial type of ore body defined so far. the only question is the best/optimal mine technique to yeild the lower grade vein structures. to bad we dont have a top notch mining engineer, or manager to optimize this mine design and startup on the management team, it could make the difference between a profitable and very profitable operation. be interesting to see if we catch a bid on this.
too bad this ore body is not in the phillipines. swedens high labor costs and lack of capital for mine automation, will probably be a limiting factor for a while, until the mine can be upgraded.
nice drills. i think the market should like this, but then again never underestimate the stupidity of the stock market. i will probably crunch some numbers out this weekend.
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