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Gold/Mining/Energy : ECHARTERS -- Ignore unavailable to you. Want to Upgrade?

To: Hovel downs who wrote (3545)	6/9/2011 4:45:38 PM
From: E. Charters	Respond to of 3744

You got me. The only two groups of assays I know about are these and the last ones I saw, which were also low to medium grade at 0.20 OPT over 14 feet in drilled width. I would not personally mine 0.099 ounces per ton over 13 feet in width (The grade and width of these last holes) unless there were a pronounced nugget effect. The nugget effect at Dome Mines used to double the effective grade no matter how many samples they took. And they took over 600 samples a day underground. Nevertheless, if they averaged 0.12 OPT in their sampling, they hit 0.24 OPT in actual recovery. The Destor Porcupine was perhaps the nuggetiest area of any I have heard of. You could never rely on drilling. In other areas, what you drill is what you mine. Today there are very few geologists who can correlate a drill off with a mined off, so this principle is not very well known in practice. In actual fact in gold mines you just average the assays in the ore zone and that is what you mined. This is a far cry from grade width averaging. So far these boys have one million ounces in situ. One million ounces of what I don't know. I am guessing or hoping it is closer overall to 0.20 than 0.1 OPT. If drill holes are all at 60 degrees then true width could be anywhere from 6.5 feet to 11 or 12 feet. 0.20 OPT is $310 a tonne. I would think it were possible to mine at that grade. I would think they need to mine at about 1000 tpd to 1500 tpd to keep costs down and either use a non dilutionary long hole system or an extremely aggressive shrinkage system to stay cheap. The question is who is going to put the money up to do that, and who is going to be the mining team. This I would think is not that likely but you never know.