MIKE's COMPANION GUIDE TO THE GREG LILLAR REPORT:
Please first read Greg's report found here: medinahenergy.com
Now here is a few notes of mine to consider:
PART 1) SOME HIGHLIGHTS
a)”Impressive drill results have been obtained from the first phase of drilling”
b)”Silver, zinc and lead may also be present in economically significant quantities.”
c) “Core from L-99-07 was viewed as it was being drilled. Visible sulfide mineralization was impressive, consisting of pyrite and chalcopyrite. A black sulfide, resported to be chalcocite, was present in quartz vugs, veinlets and along fractures.”
d)”Sampling and field methodologies observed confirm during the field visit conform to accepted, standard industry practices. Standard assay techniques are being employed.”
e)Simple volumetric calculations based on the available data infer a potential 25,000,000 tons target may be present into the Lipangue breccia pipe. No grade estimations can be made at this time.
f)The potential exists for the discovery of additional breccia pipes.
g)Project has the potential to develop into a significant discovery.
h)Geophysical work should be performed to better define the project
i)A phased drilling program utilizing angle core drilling is recommended.
j)Primary target at LDM is a gold bearing shear zone-secondary, manto or banded sulfide minerlization is also present.
k)The potential strike length of the host shear zone and the grades intersected thus far indicate a significant economic target could be present.
PART 2) SHAPE/DIMENSIONS OF THE MINERLIZATION AT LIPANGUE
To visualize the shape of minerlization in the breccia pipe-need to think in 3-D. Looking down from a plane-the surface expression of the breccia is oblong stretched West to East about 400 meters across.
medinahenergy.com The West edge of the pipe is defined by the contact between grandiorite and Andesite rock. The East dimension is not defined. It plunges downward underground beyond the range of the previous IP. So it is likely the strike length is greater than 400 meters. The Pipe has a “thickness” of about 70 meters. Instead of the oblong pipe plunging straight down into the ground-it plunges at an angle sharply to the South. medinahenergy.com (It is very unusual for a pipe to slant more than 15° from true vertical-this pipe slants around 30 degrees-interesting.) Keep in the mind the East side of the Pipe is lower that the West side of the Pipe. Final thing to consider-it appears the Pipe is split down the middle by faulting-the East side of the Pipe shifted 75 meters below the West Side. medinahenergy.com (This is not unusual for a breccia pipe.) The depth of the pipe is at least 325 meters. A Standard Geologic model would suggest it could easily go to a kilometer in length.
PART 3) SIZE OF RESOURCE
Greg used 400 meters by 325 by 70 meters and a rock density of 2.75 tones per cubic meter to estimate a reserve size of 25,000,000. He used these particular numbers from a combination of drill data and IP data and surface mapping. For scale, the 25,000,000 tons of minerlization is approximately the size of Dayton's Mine. So, if we have 1 gram/ton of gold equivalents-it works out to 880,000 million ounces, 4 grams/ton works out to 3.5 million ounces etc. It appears just the pipe itself will be a very significant mine.
PART 4 ) WHERE IS THE PORPHYRY?
The pipe should plunge toward the parent intrusive which will probably be at the center of the porphyry. Looking at a top map of the Lipangue plateau-the intrusive should be several hundred meters South of the surface expression of the breccia and perhaps 600 meters straight down(LDM intrusive is about 600 meters below the Lipangue plateau.) The porphyry minerlization should extend in a halo surrounding the upper part of the intrusive.(It may be “titled” in same fashion as the pipe....think of a soda container with a straw sticking out of it and a ice cube at the bottom of the container--the straw is the breccia pipe, the soda container is the porphyry minerlization, the ice cube is actually the very hot parent intrusive-the soda container is all leaning about 30 degrees-with the bottom of the can towards the South.) The tilt is in our favor. Top map shows a very sharp drop off in elevation of hundreds of meters several hundred meters South of the surface expression of the Pipe. Eye balling it would place porphyry minerlization exposed near the surface of the South and perhaps SE side of Lipangue mountain. Minerlization has been observed on cliff sides at Lipangue mountain. Recall the IP results hint at something near the cliff sides. In general, the area I believe the porphyry minerlization may be found has not been IP or drilled. A few deep vertical holes on the edge of the cliff on the South side should find the elusive porphyry. The size and type of minerlization of the porphyry can only be guessed at. Huge comes to mind....
PART 5) OTHER PIPES?
Since breccia pipes often occur in clusters-there is a good possibility of more of them nearby. They may not be easy to find. The grandiorite rock has been severely altered-you can crush it in your hand. Soft rock erodes easily and does not “outcrop” very much-ie you can walk right over it and not even know it. Some extensive IP, magnetic survey may be necessary in the future to look for more pipes.
PART 6) WHY DID HOLES 1, 2, 4, “MISS”?
Hole 1 was drilled very close to the contact of the Andesite/Grandiorite rock formations. First few meters cut through the grandiorite-the rest through the non-mineralized Andesite. The first few meters of breccia has been “leached”-minerals have been dissolved by water and acid-hence that is why hole 1 was only anomalous in gold/copper. Hole 2 was also anomalous in gold/copper-it was drilled on the North side of the breccia minerlization.(recall-the minerlization plunges Southward below the ground.) Hole 2 may have gotten close to the porphyry minerlization.(minerlization that occurs above the intrusive but outside the pipe.) Hole 4 was drilled at an angle right into the margin/faulting zone that separates the Pipe from the country rock. The extreme faulting encountered caused that hole to be abandoned.
PART 7) MISC
a) Cominco geologist were mentioned in the report-add another Major to the list.
b) Vugs are small cavities in a rock-filled with minerlization.
c) Silver, zinc, and lead according to Greg should be analyzed using more sensitive techniques than an ICP in order to quantify them. Big unknown here on how significant these metals might be in the overall economics of the project.
d) The highest minerlization encountered was at the interface of the pipe and country rock-just as predicted by geologic theory. The pipe margins generally had the most flow of hydrothermal fluids-allowed more highly concentrated metals to form there.
e) Supergene enrichment-minerlization leached from the surface should be present at least partially in Hole 7 and any further holes drilled just to the North and East of that hole-ie areas about 50 meters or so from the surface.
f) Greg wants 40 to 70 holes drilled to define the Pipe. Note: He made no recommendations to start doing wildcat drilling in search for the porphyry yet...lets hope GEODATOS discovers the porphyry in the latest round of IP surveys-it will makes things a lot easier.
PART 8) LOS DOS MARIAS- I will discuss at another time! Surely LDM is looking more exciting at the time!
If anyone has any specific questions-let me know and I will be happy to answer them. Cheers!
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