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Microcap & Penny Stocks : IDCN - gold, garnet, etc. -- Ignore unavailable to you. Want to Upgrade?

To: ROY DEL who wrote (5483)	3/11/1999 7:50:00 PM
From: JimNewby	Read Replies (1) \| Respond to of 5908

A message from "merv," Reposted from www.Stockhouse.com: I've just finished reading the SI posts and see the classic remarks from gold investors. Remember investing in gold stocks is like being manic depessive. On good results there is elation and stock is driven up but when low values are returned spirts, and likewise investor confidence dives. The thing to remember is not to look at individual assays but instead at all the assays and what they indicate. An example is an assay of say one ounce per ton over a width of 10 cm indicated good gold over a narrow width but if you take that out to a minimum mining width of say 1.5 meters, using shrinkage stoping, the value decreases to o.o6 oz/t. Inversly if you have multiple grading veins that are close togeather over 30 m in width and have an aggregate value of 0.20 oz/t you have a very profitable bulk mining scenario, depending on a great many factors including ground conditions, continuity, milling characteristics, ect. If this ore body proves to have a decent grade and width, ie the 30m alluded to, a shallow pit scenario would probably be the best way to start. two examples of this are the Sigma 2 and 3 pits in Val-d'Or where near surface reserves are mined from narrow open pits to a depth of 90 meters at relatively low grade and at a decent profit. Remember it costs a fifth of the cost to mine from surface as it does from underground. I feel the best method to bulk sample this deposit would be to strip the ore zone off, detail map it, then air track a sample of 20 000 tonnes out, crush it, then split it down in a sampling tower, and have it custom milled either using a modular portable mill or at a custom milling facility (Lakefield or CRM). This is a lot less expensive than the option of going underground. Before any of this takes place much more drilling will have to take place as 5 or even 15 holes will not be enough to justify the cost of undertaking a bulk sample program that will cost more than a million dollars. I still feel that this is a property with an exceptional potential in light of it's past production and the continuity of the ore. One has to remember that in the Isaac's harbour district veins were mined from the Victoria in the North to the Dung Cove open pit in the South which covers a strike width of more than a 1.5 km in width adn from the North Star in the West to the Seal Harbour in the East over a strike length of more than 3.5 km. Also remember that this area has produced over a million tonnes yielding 150 000 ounces at poor recovery rates. Thus I strongy advise those thinking they should cut and run to wait and see what the WHOLE program yields as results not just the numbers from the top section of one hole. Merv