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Interesting that you mentioned Red Lake. Early in CD's career he worked for Exall Resources. Their annnual report, 12/31/2004, shows 50% ownership of Gold Eagle Mine which is located in the Red Lake area. Not sure if CD was there when things were popping.
CD also has extensive experience in the Destor-Porcupine fault area since the early 1990's and a Director of TOM one of the predecssor owners that did a lot of drilling on the Explor property.
When, or if, CD moves on I sure want to keep track of where he goes.
Doug
Further complicating these calculations is the conversion for C$ and US$, tons (2,000 lbs) and tonnes (2,240lbs) , and grams and ounces and troy ounces.
Destinator
Page 35 of the Model is similar to page 16 of the TPW presentation. It shows that Explor has been investigation the South Limb Fault with success. The fact that they have put some holes in the North Limb and have found commercial grade ore in the area referred to as “D” implies that the North Limb will have similar Au as the South Limb (implied but not guaranteed).
Unfortunately I do not see the same colors as you do.
From previous posts by bywisdom I believe that CD is drilling in a methodical geometric pattern and not trying to follow any structure underground; ie chasing the sulfides..
I am not a geologist or mining engineer, but I am sure the mining guys can interpret this data and charts. But I think you are on the right track based on everything I have seen. From the diagrams on page 16 and page 35 I believe that there is a high probability that there is a boatload of commercial grade Au ore on the property.
Coupled with the comment about Thunder Creek where the grade increases as you go deeper, and that the mineralization expands as you go deeper, it all looks good.
Totally blue sky: If you think of this stuff as molten rock then solidification progresses from the surface down. If the cooling and solidification process tends to reject some of the gold such that the remaining molten rock becomes richer in Au then things start tying together. I wonder what we would find at 1800 meters at the bottom of the “U”.
We are approaching the situation where too much detail information in the hands of people who are not trained to interpret it correctly can be dangerous. So take my comments with as many grains of salt as you think necessary.
Doug
Let me clarify a few things:
On the website there are 3 documents that are available:
- General Corporate Presentation
- Timmins Porcupine West Presentation
- Timmins Porcupine West 3D model
1. On Explor home page there is a link to a General Corporate Presentation
http://www.explorresources.com/_resources/corporate_presentation.pdf
As redinvest said in #1380
“Thanks, Joe, that was a very impressive display of the summary of all our properties. It's hopeful that all ( including majors and institutions ) , that might be interested, get a glimpse of this valuable intel.”
Explor has a lot of paddles in the water not just TPW. IMO saying that Explor is undervalued is like saying Eva Langoria is just an OK looking woman.
2. From the home page click Operations, then click Ontario, then click Timmins Porcupine West
http://www.explorresources.com/operations/ontario/porcupine_west/
There you will find the 3D Model and a presentation about TPW
3. I found the presentation marginally easier to read.
http://www.explorresources.com/_resources/TPW_Presentation_May_01_2011.pdf
Note the cover is dated March 2011 but the file is dated May 1, 2011.
Page 16 of this document shows the “U” shaped structure with the Porphyry in the middle of the “U”.
Page 17 & 18 show a top view of the property (I am assuming the solid black line is the TPW property line) and shows the area of high grade intersection.
4. The model is the other document referred to
http://www.explorresources.com/_resources/Timmins_Porcupine_West_Project_3D_model_Evaluation.pdf
bywisdom
I am also an engineer (metallurgical) and early in my career I had similar problem. It took a lot of work to develop the other skills. As some on this board have said the person to lead an organization of this type has to be be highly competent technically, I believe that CD is such a person.
You do not want a Rah-Rah PR type until you have a strong position to sell at retail. The experienced mining types want the facts "just the facts ma'am".
However I do agree with others that the Tinka type of glitz will be helpful in the future. I think that now is the time to be developing these selling tools & documents, etc. for the retail, small investor, hedge fund and momentum follower types.
Believe me, the organizations that he is talking to about JV's have skilled mining engineers and technicians in the back rooms building models using the drill hole data that Explor is reporting. They probably also have the drill hole data from Lake Shore and some, if not all, of the data from the drilling between Lake Shore back 120km east to the Holt Complex. They know exactly what the potential is.
I see that the CFO worked with CD at Fieldex Exploration. It would be interesting to know how many in the Explor organization have worked with/for CD at previous employers.
Doug
Hi Redinvest
Nice to read the "tease' from Hammer. I got another one from him written after the conference. When I saw it I wondered if he was referring to Tullow or PCOGF.
Unfortunately my interest exceeds my finances. I am kind of tapped out with the Candian mine and the driller in Mongolia and drillers in the Bakken. I sure would like to see these go sequentially and not all at once.
Doug
bywisdom
The model is located at:
http://explorresources.com/_resources/Timmins_Porcupine_West_Project_3D_model_Evaluation.pdf
Of course you need to be a mining engineer to truly follow and appreciate what is presented. However, I recommend viewing slide 35. It shows a "U" shape structure which is being investigated. Most of the work is on the southern section. The diagram shows an estimate of the bottom of the "U" at 1,800 meters.
Note also that the southern section appears to be along the Destor-Porcupine Fault. This fault seems to be a prolific geologic structure.
Refer back to my post #1379 where I referenced the May 5, 2011 Lake Shore announcement of a project with Barrick Gold see
http://www.infomine.com/index/pr/PB042189.PDF .
The property is in the Destor-Porcupine fault. about 100Km east of the Lake Shore and Explor property. It does demonstrate that the majors are very aware of what is going on in this part of Canada. Everyone can read and draw their own conclusions. They are talking about an open pit mine with ore in the 1-2 Au gm/tonne, and gold at US$ 1,125/ounce.
Refer to Figure 1 of that document and you can see the Destor-Porcupine fault extends east to west. Along the 140 km shown on the map are:
- The Holt Mine Complex
- The Fenn-Gib joint venture of Lake Shore - Barrick
- The Ross Mine - In operation between 1934 and 1988, Ross Mine produced over 1 million ounces of gold.
- Black Fox - Currently being Teased by others
- Taylor Mine
- Pamour Mine
- Hoyle Pond
- Bell Creek Mine Complex
- Dome Mine
- Hollinger McIntyre
- Timmins West Mine Complex
- Explor Resources
- Lake Shore
Patience my friends. The gold is there. This is an investment not a quick trade.
Doug
bywisdom
Thanks for the answers.
1 I am not that concerned about the hole depth, the "open on depth" is good enough for me at this poing. I refenenced the Thunder Creek 500m only to indicate that since our findings down to the level we have drilled supports commercial development, then below that there is a better than 50%-50% probability that there will be more ore at an above breakeven grams/tonne which will just be rich icing on a rich cake.
It would be interesting if someone could quote the breakeven grade needed for an underground mine. The JV with Barrick and Lake Shore seem to consider 2+ g/t to be profitabile for an open pit then I wonder what it is for our property. CD believes that the findings are commercial.
I have no idea what the impact of angled versus vertical drilling would do to the Explor analysis.
2. Glad to see that funds for another several months are on hand for drilling.
3. I would be interested in knowing if we can drill another 10,000, 20,000, etc meters.
4. It would be very exciting if we had some holes drilled within 50-100 meters of the Lake Shore property with 5+ g/t ore indicating one big contigous ore body.
Doug
Ooops
The reference to Hole 10-39 should read 10-30.
Joe
The report you shared with us (you posted that it is now up on the web site entitled Timmins Porcupine West Presentation).
Page 9 references Thunder Creek mine (Lake Shores's mine). Thunder Creck started to encounter high grade ore .... at 500m ... 83.4m of 12.75 g/tonne at 889.4m to 972.8m.
P 9
Stated that Explor TPW holes average depth was 300m, average means some are deeper & shallower
P 11
Shows a wide range of hole depths with ore; from 123.7m to 734.1m.
Hole 10-30-W1 shows 3.1m of 135.04 Au g/t down to 657m
Hole 10-39 shows 9.22 g/t over 11.0m down to 734.1m Within the 11m there was a 4.1m section at 23.69 g/t
Look at the diagram on p 16. We do not know where the bottom of the "U" shaped deposit is.
Remember the phrase "open at depth" has often been used, so if we drill down to 1500m we may see more and richer ore. However, the drilling to date already appears to support commercial development.
It is a judgement call as to continue drilling to identify the limits (East - West - North - South) of the ore deposit versus drlling to deeper depths, or drill to search for a "glory hole".
During the mine development phase additional drilling will be done to identify the depths for planning the mine.
Doug
Hi
Allen Alper was the name of one of the interviewers.
bywisdom
Thanks for getting back so quickly. I was concerned that funds would run out before CD has completed his drill plan. In that case he would be going back to the market hat-in-hand and in a relatively weak negotiating position. It is encouraging that you believe that funds can be raised based on the drilling results to date, regardless of the SP.
If the warrants are exersized at the end of this week with the SP has been bouncing around in the $0.70's/share, tells me that the "big" guys (whoever they are, hopefully long term investors not SP driven fast bucks guys) have their own models and know exactly what Explor is sitting on.
On May 5, 2011 Lake Shore announced a project with Barrick Gold see
http://www.infomine.com/index/pr/PB042189.PDF The property is in the Destor-Porcupine fault. about 100Km east of the Lake Shore and Explor property. It does demonstrate that the majors are very aware of what is going on in this part of Canada. Everyone can read and draw their own conclusions. They are talking about an open pit mine with ore in the 1-2 Au gm/tonne, and gold at US$ 1,125/ounce.
I wish I had paid more attention to the mining & ore processing work when I got my metallurgy degree many decades ago.
Encouraging.
bywisdom
Were the results from the last two holes the end of the planned drilling program? If not, how many more holes can/will be drilled on the current plan and/or with the funds now in the check book.
What is the drilling plan for the next round of fund raising which, hopefully will be by the end of the week (May 27)?
Will there be some holes going over to the Lake Shore property line? I suspect that the majors have their own models and if it is shown that it is one big ore deposit then in my mind the property should be very viable as a commercial mine.
I appreciate that a lot of people monitoring this thread have been in for a looong time (I remember I heard about EXSFF a couple of years ago) and would like to see some SP pop.
However, I for one would like to see some additional drilling (hopefully at a low dilution cost) to prove out the model and over to the Lake Shore property. Since none of the holes have found a bottom or either side (open at depth and open at strike [ if I understand the terminology ] ), if it goes over to Lake Shore and still averages above 3-5 g/tonne CD should be in a very good negotiating position. This may take until the fall.
Doug
When the result for the last two holes was announced I vaguely remember that it was said that they were "wedging off" from one or both holes. Later I saw someone mention that samples from two wedges were in for assay.
Will there be any kind of announcement from this wedge drilling?
Like all things in life you need to read the fine print and footnotes. Within the 15.3 m @8.12 g/tonne was section of 4.8 m @ 15.67 g/tonne. A glory hole? no. But the results still probably support a mineable deposit. The majors have their breakeven g/tonne in mind at some $/troy oz (certainly it is not today's price). The fact that it is further west (1 kilometer to go to Lake Shore) is very encouraging as is the fact that they have not reached the bottom of the deposit or the outer edges .
BTW According to my table of conversion factors:
1 Tonne = 1 Ton = 2240 pounds;
1 gram = 0.0353 ounce (on the postage/kitchen scale) = 0.0322 troy ounces;
1 ounce = 0.9115 troy ounces
An Addon
I also got the Energy & Capital blurb and thought this should give it a shot in the arm. So I was doubly suprised at todays activity.
Doug
Yes it is strange. I have been following it and almost fell out of my chair when I saw it down today. In the last couple of weeks someone on one of these threads left a link/reference to "How To Manipulate The Market". The sell off only requires 2-4 like minded deep pockets and a willing market maker to push the price down artificially in preparation to a big runup.
I have also been following he gold thing and was surprised at how quiet it was today.
Doug
I believe this to be a smart move. Assuming that the last two holes are good he could strike a deal at "$X". By raising some additional cash to drill some more holes and assuming that the additional holes continue to be positive or very positive then a deal in the future would be at "$2X" or "3X" or "$nX".
For a small amount of dilution the company has obtained the time and cash to continue drilling which will, hopefully, increase the upside potential by a lot. Of course the grams/ton found needs to continue to go higher.