Hi, Douglas. For one thing, they have sampled the property before, so they already had sample points and sample results for those points when they started this phase. Also, the first sampling must have indicated areas that were more promising than others in terms of grade and the feasibility of economical extraction. Therefore, and considering the change in numbers since the 97 report, here is something that I think can make sense.
There were 718 new surface points sampled this time. Guido concentrated a lot of them on the most promising area, thus achieving the sampling standard to move the gold from that area into the proven reserves category. The rest was spread between the points from the previous survey, with some extending beyond so that he has now covered 80% of the property instead of the 50% covered.
If, for purposes of simplification, conacentrations were similar all across the property, 6M ounces, representing roughly 3% of total estimated resources (if we include indicated and inferred), would be found in 3% of the area. In fact, since that simplification hypothesis is most probably inaccurate, the area chosen for more extensive sampling offers above average concentrations and it covers LESS than 3% of the property. So, I think that although the claim of 6M ounces proven seem doubtful to some, it is entirely possible.
I am no expert in mining, but I know something of statistical methods and estimates in general.
Now, I am not saying that the work was done according to the approach I am suggesting (have not seen the report), but it makes sense.
Michel |
