Sidney Resources Corp (SDRC)

[surrealistrader]

Q4 FY2023 Disclosures have been released on OTCMarkets:

In summary, and in my opinion, Sidney Resources Corporation's Q4 2023 quarterly filing shows a strategic approach to leadership, strengthening their network, efficient project development, and transparency. I do, however, have a few criticisms in the interest of strengthening investor confidence, and validating the company's market positioning and value proposition.

"Our exploration efforts at the Warren District Mine Project revealed five substantial ore stockpiles adjacent to the project location, totaling 25,000 tons of high-grade ore. Bulk sampling, which involved systematic grab sampling from various regions within these stockpiles, yielded impressive gold grades ranging from 0.72 to 1.78 ounces per ton (oz/ton) Au. A 50-pound bulk sample demonstrated an exceptional concentrated gold grade of 117 oz/ton Au, equating to an approximate bulk grade of 2.925 oz/ton. The estimated average gold grade across the stockpiles stands at a substantial 1.81 oz/ton Au.

These stockpiles are estimated to contain a total of approximately 45,250 ounces of gold, with a current market value of approximately $91,712,700. Sidney Resources Corporation now holds control over these valuable resources through placer and lode claims secured immediately after discovery. Additional small batch crushing and processing of this ore material revealed visible wire gold, with initial milling and smelting results indicating a gold recovery rate of 90 grams per 1,000 pounds of feed."

The mention of systematic grab sampling and the results obtained (gold grades and estimated gold content) indicate some attempt to address concerns related to non-representative sampling, sampling bias, and the statistical validity of their grade estimations. I think it will be crucial to supplement this with much-needed details on the methodologies used.

We should bear in mind that the breadth of such sampling efforts can still be showcased in the impending public release of assay results from Florin Analytical Services. My hope is that this has gone beyond the awaited assay report from a 50 lb bulk / 1oz concentrated sample. It should also come in the form of a public breakdown of quality control measures, and further third-party validations, or comparisons. I understand that Steve Dobson, WFEM’s geologist, who has not been mentioned with a specific accreditation yet, has ensured the integrity of such sampling process. Then again, "$91,712,700" is a lot of money to just find on the ground in the woods outside, so SDRC has no reason to spare expenses in adopting an effort to establish this figure as a proven reserve / on their balance sheet. This would necessarily entail directly and thoroughly addressing possible concerns about statistical validity and sampling bias, and a near term indication of this would be to read of the company's plans to engage with accredited independent third-party experts for verifying their sampling strategies and ore grade calculations. What happened to the work they announced with Pete Ellsworth PG/QP? Such a thing further enhance confidence, and put them in the much better standing that they deserve with the larger players in this industry.

Additionally, expanding on the specifics of how environmental and sustainability goals intersect with mining operations, particularly in terms of reducing the carbon footprint and improving water quality, could complement the technical and operational efforts to ensure the company's long-term viability and appeal to ESG-focused investors, and broader mining-industry standards.