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Re: Geenow post# 62376

Wednesday, 03/26/2014 1:01:31 PM

Wednesday, March 26, 2014 1:01:31 PM

Post# of 80983
If you go back through my post history you'll find that I've addressed pretty much all the information you've cited in your post.

The geological summaries put out by the company looks to have been written by someone who has read a dictionary of geology and understood none of it; they're full of extrapolations and 'forward-looking' statements that are not substantiated or verified and would never make it into a modern day report for a listed company. The geology of water/rock interaction, the mechanics of breccia formation, secondary enrichment and porphyry petrogenesis are grossly oversimplified and poorly understood; assumptions about structural/mineralisation continuity are made that are totally unsupported, but paint a picture of a 'World class deposit' to those who don't have any geological background. The text also places undeserved reliance on Perez's satellite study and extrapolates the findings to a point well beyond the limitations of the technique. SI distinguishes rock units on the basis of reflectance and absorbtion at the surface at a variety of spectral levels. It can 'see' some individual rock units (you still have to confirm what they are by taking samples on the ground) and it can identify alteration haloes and other hydrothermal features, but it cannot see mineral grade and tonnages, nor can it detect below the surface. The idea that porphyry bodies, even those with evidence of hydrothermal activity, are routinely mineralised is a fallacy; I have worked extensively on porphyry systems with some of the best internationally regarded men in this field, and can tell you that not all porphyries have the particular chemistry, water/metal budget and stress/potential energy history to develop into mineralised systems of the type that develops into world class deposits.

The bottom line is that the ADL/LDM is an area that is variably mineralised and has in the past supported artisanal surface/near surface mining for gold, copper, molybdenum and iron, just like many areas of Chile. It may have the potential to contain a large porphyry deposit, but this will need to be tested by extensive investigation, including drilling. Artisanal mining is often small-scale, but can be very profitable if the capital outlay (in terms of structural support, pumping costs and mechanisation) is kept to a minimum, but the life-span of such workings is often fairly short and stops once costs begin to rise (many small mines do not proceed below the water table, to avoid pumping costs, power installation, etc), they also typically support only a very small workforce and are highly tied to contract mill costs and the copper price, stopping work immediately if the price dips below a given level.

Just because an area has supported artisanal mining, there is no certainty that a parent WCD will be found; the dispersal of mineralising fluids into the carapace above a porphyry stock is dependent on a variety of factors from the initial water/metal budget to the local stress field, the nature of the cover rocks, proximity to paleosurface, the presence or absence of boron and the internal dynamics/energy of the parent magma. While ADL is within elephant country there is a lot of work ahead to uprate the resource to a point where a serious mining company will take interest.

Your final point regarding the assays - they look good don't they? I could pick up a rock with a millimetre thick covering of secondary copper sulphate and replicate any one of those - it wouldn't mean I had a viable orebody at all, just that I'd picked up a likely looking rock. Assays without geological context, sample methodology and given widths (5% Cu over 0.70m, etc) are meaningless, misleading and ultimately pointless. If you can't locate the sample in 3D space over a given width on a given structure you've wasted your time. You also need a regime of sample standards, blanks and repeats at an ISO-accredited lab to make sure you have a statistically viable and robust sample. The least you should have is good map showing sample widths and locations with geological explanation to put the samples in context.

Hope this helps!