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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Jesse who wrote (5718)	7/18/1998 4:10:00 PM
From: Jesse	Read Replies (1) \| Respond to of 7966

Oops- a typo in that link to a qwik rough update for ACA til now- Here's how it should read: Message 4917510 (the earlier was missing one 'w' in the URL) - includes a brief discussion, links to ACA results to date, etc -j :>

To: Jesse who wrote (5718)	7/20/1998 9:34:00 AM
From: St. Barbara	Respond to of 7966

The recent guidelines proposed by the TSE taskforce will happily make it illegal to make irresponsible statements such as this. <<To compare a new pipe with established pipes requires a mining "reserve" calculation on the new pipe... there are two important steps to go. Each step involves a stricter cut-off standard whereby tonnes are dropped to optimize the economics of the orebody. This invariably increases grade.[IN FACT THE STEPS THAT GRADUATE THE MINERAL OCCURANCE FROM RESOURCE TO RESERVE, OFFER INCREASING DEGREES OF CONFIDENCE AND THE APPLICATION OF MINERAL PRODUCTION ECONOMICS. THE FACT THAT TONNAGE DECREASES AND THE GRADE INCREASES IS A SIDE EFFECT OF THIS PROCESS. IN FACT, THE TOTAL MINERAL INVENTORY DECREASES, IN SPITE OF THE INCREASE IN GRADE.] A reasonable rule of thumb is to take the early estimates and cut half the tonnes, [THAT AMOUNT OF ADJUSTMENT IS RARE, AND WOULD BE AN AFFRONT TO THE GEOLOGIST RESPONSIBLE FOR THE ORIGINAL RESOURCE CALCULATION] that is, exclude the lowest grades. Going back to the Ashton news release [K-14 minibulk], exclude the pit samples and take the weighted average of the best three and best four holes, then take the average of the two results.[THIS IS TOTALLY INNAPPROPRIATE. ALL SAMPLES, BOTH HIGH AND LOW, MUST BE INCLUDED IN THE RESOURCE CALCULATION. THE ONLY ADJUSTMENT THAT CAN BE MADE IS TO APPLY DIFFERENT, BUT APPROPRIATE, CUTOFF GRADES, TO ELIMINATE LOW GRADE MATERIAL FROM THE RESOURCE.] This will yield a post-mining reserve cutoff grade of about 0.66cpt. [THIS ESTIMATE ASSUMES THAT NONE OF THE MINERAL INVENTORY (ie weight of diamonds) IS LOST IN THE UPGRADING OF THE RESOURCE. IN FACT, THIS IS WHY THE GRADE WILL BE LOWER THAN THAT SUGGESTED Just a speculative guess [BASED ON UNSOUND PRINCIPALS] so far but I suspect it will prove to be on the low side since the sampling factors during the early stage of diamond exploration tend to skew results strongly to the conservative side>> This play doesn't need hype like this 'expert' you have quoted. Generally speaking, as the resource is upgraded, the total value of the mineral inventory deceases, hopefully not below any economic limits. The economic limits are lower here that NWT (as mentioned by you earlier), so the resource has a longer way to go. Also, all indications (tonnage, grade, value, plus operator skill,) suggest that this is a good bet.