News Focus
News Focus
icon url

RD759

04/29/14 6:35 AM

#62869 RE: 536hr #62853

Mike, Of course not. I've worked on a shear-hosted gold deposit (average grade 1.2g/t, though with occasional spikes to over 100g/t) that still carries a large resource.

I'm merely saying that you should disregard the grade spikes, like the 'Glory Hole' as they are nothing more than eye candy to dazzle those prone to gold fever. If you chose to extract this high grade pod alone you may net around 10-15 tons of rock; if, however you concentrate on average grades across the whole shear or large sections of it, then you can extract large tonnages. What's better, 15 tonnes @ 450g/t or 100,000 tonnes @12g/t? There is no contest.

The problem with the sampling done to date is that it is too little and too random to be able to constrain an average grade or to be able to define any ore shoots that may be present, and without that information you cannot formulate a plan of extraction or even know if the future of the operation is viable at this stage.

10g/t is the kind of ball park cut off used between open pit and underground operations (though this will vary with a number of factors including local mining costs, etc); you need to be as certain as possible in you projected head grade before committing yourself to underground operations.