I have been digging through the NRs from earlier this year. The drilling they did last year was in itself exceptional, reporting intercepts of 89m at 2% Copper. They followed up along the same drill fenceline later in the year and hit additional wide intervals of lower grade copper with some intercepts as high as 3% in those cores. With this most recent round of drilling they have succeeded in stepping out the limits to a new zone of much higher grades. They are still basicaly working from surface, and hitting multiple intervals of mineralized zones.
Just for reference, hole KA-05-05 reported a gross metal value equivalent to half an ounce of gold per ton over 56m, and within that interval was a 7m intercept of 1.2 ounce per ton gold equivalent resource worth about $650 a ton at the current prices. This is still a shallow system that will have open pit potential if they can step it out over a larger tonnage, so the probable operating costs to mine it would be in the range of $10-15 a ton, with a low stripping ratio, since the mineralization begins almost at the surface. Management believes they have not hit the highest grade portion of the deposit yet.
What a great start they are off to on this property, and from a prior news release, they have several other high-grade targets to follow up on nearby as well.
The market cap for EAS is getting up there, now over $30 million, but with such spectacular results right off the bat, and so much additional potential, it looks like this property will become a major story. For comparison, the Turquoise Hill project in discovery by IVN, and the surrounding JV with ETG, occurs at much greater depths with lower grades. It is too early to begin comparing Khok Adar with Turquoise Hill, but as they advance the project it could certainly amount to a massive asset value with attractive development potential.
And they still have other projects that have not even been tested yet.
cheers!
COACH247
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