Good move Frank. This is definitely an exciting play. I initially felt that the price had got way ahead of itself with target prices of $4 being quoted after hole 80 was reported. The results from hole 90 just blew me away and now analyst seem to be reporting negative aspects. They don't trust the results from RC drilling and are disappointment with results on the southern edge. Holes 77 and 78 drilled last year 600 meters south of 76 came up empty so results from 87 should not have been completely unexpected. All plays have speculation but the valuation you can find on juniors that have not made a discovery yet does not compare in my mind to the current valuation placed on the potential that exists on Veladero.
It is definitely speculation as to what they will find as they step out to the east on the Amable target but the trend looks encouraging from holes 85, 80 and 90. We have been hearing that ARP is only drilling step out holes for the market. But as you can see from the NR below that was always their plan. Why do very widely spaced exploratory holes when these long medium to high grade step outs are adding major numbers to the resource and delineating the ore body. They were following the plan as described in the Aug 12/98 NR. That plan has now been altered.
The 6,000 m RC drilling was suppose to be all on the Amable target with 2,000 m of DD holes on Filo Federico. Also at the AGM on Nov 12 Lundin stated they did not plan to put a second drill rig on the property before Jan. Now they are drilling hole 91 in the eastern sector of Filo Federico and the 2,000 m drilling program is expected to start in Dec. I am wondering why they are exploratory drilling a Filo Federico right now? I suspect they are testing their new model on Filo Federico. Wouldn't that surprise the market if they hit some higher grade near surface in hole 91 which as of Nov 23 was at 340 meters.
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Aug 12/98
5. The intersection obtained in drillhole #76 should be followed up aggressively, with relatively closely spaced drill holes.
An initial (October, 1998 - February, 1999) reverse circulation program of approximately 8,300 to 8,500 metres. This program shall commence at the Amable Target around Hole 76 where between 5,000 to 6,000 metres are to be drilled. •A diamond drilling program at Filo Federico of approximately 2,000 metres in two sections of the deposit to further delineate higher grade regions that have been intersected by drilling. The objective is check the gold/silver grades. Possible losses of fines from reverse circulation drilling need to checked as well as further investigate the geology and metallurgy of the target.
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From July 12/98 NR
2. The substantial growth of mineralized targets. The SE Target, renamed Amable Target, (tested in Hole 76) and a newly discovered area of resistors referred to as the Muneco Target combined with mineralized targets proven up in previous drilling seasons (Breccia Agostina - 95/96 and NW Target - 96/97) point to a very large epithermal system with gold/silver mineralization identified on sites distanced as far apart as 3 kilometres. The mineralized interval encountered at the SE (Amable) Target (193 metres of 1.49 gold) is consistent in terms of width and depth with the mineralized intervals found at Filo Federico 2.5 kilometres away. The overall size of the system exceeds 12 square kilometres. The initial drilling performed at the SE (Amable) Target, which is adjacent to the Cerro Pelado Target (as yet untested by drilling), favours the hypothesis that the Cerro Pelado target has a similar geological setting as the Filo Federico system and may host similar mineralization under its same "blanket" of steam heated alteration and that eventually Filo Federico and Cerro Pelado could prove to be a single, large mineralized system.
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An exciting play to say the least.
Good luck on this one Frank.
John |
