Ken, you are on track with the traditional recovery issue, I believe. In talking to Kim and others, the market will take standard testing as in implication that some variation of standard recovery will work. (remember there are literally hundreds of variations of assay and recovery that all fit into "standard" molds allowing for unique ore combinations since every ore is unique to one degree or another) Knowing that opt down to .06 can be profitable with standard recovery methods, if FL shows a steady overall average of .2 or .3 opt on gold alone, and Naxos also proves up other metals, than with 68 holes on a flat piece of land showing .2 opt plus other metals, recovery will almost not be an issue. No overburden, easy access, roads, electric, etc. all in place all add up to lower cost recovery.
You are also correct that recovery was a MUST when we were talking about a completely new process with JL. If ore value hinged on whether JL worked or not, then proving JL style recovery was the linch pin.
With JL no longer the pivotal issue, Naxos is free to assay the heck out of 68 holes using SFA. Of course at some point, there will need to be recovery, but many properties using standard testing will get some valuation from 25% to 75% depending on density of drilling on SFA assay alone.
The real value in the recovery program lies in what JL showed us REALLY is in the ore. Remember the 2 to 3 opt results (no decimals)?
Well, science tells us you can't prove what isn't there. So actual recovery will be able to be refined to extract the real total value of that ore. And there is where we will see the big reaction to FL.
Until then, give me standard testing any day. That will still be plenty to get lots of attention in the market. 4 days and counting for drilling to begin.
I hope that helps.
Tom F. |
