Replies to post #9626 on Sidney Resources Corp (SDRC)

[surrealistrader]

To address the points raised by Gitreal:


1. Understanding Sample Concentration and Original Grade:
- Gitreal's emphasis on the original sample grade being around 0.14 oz/ton, derived from an 800-fold concentration, needs clarification. In mineral processing, the concentration process increases the gold content in the resulting sample but doesn’t change the total amount of gold present. The original sample's grade of around 2.925 oz/ton, as mentioned earlier, is a more direct measure of the gold content in the stockpile before concentration. This figure is significantly higher than 0.14 oz/ton and aligns more closely with the high-grade classification. Insisting that the original stockpile's average grade of 0.14 oz/ ton has been thoroughly refuted as a result of misunderstanding, or worse, a petty attempt to manufacture a discrepancy where none exists.

2. Definition of 'Bonanza Grade':
- 'Bonanza grade' typically refers to extraordinarily high-grade ore, necessarily measured over 1 oz/ton. The concentrate grade of 117 oz/ton is indeed exceptional, but as the respondent correctly points out, it’s the result of concentrating the ore, and in this case derived from a 50 lb sample. The more relevant figure for assessing the overall quality of the stockpile is the original grade of 2.925 oz/ton. This indeed fits the definition of "Bonanza Grade" once found to be consistent. I also believe more sampling data should be collected and released to support this.

3. Statistical Defense of Sampling:
- The critique that one sample from a large pile of rock is not statistically defensible is valid. In mining, it’s well-understood that a single sample may not represent the entire stockpile. That’s why mining operations usually conduct multiple, strategically distributed sampling throughout a stockpile to get a more accurate representation of the overall grade. The information provided doesn't specify if multiple samples were taken, but this would be a standard procedure in resource estimation.

In summary, while the original sample grade is indeed the crucial number for assessing the stockpile's overall value, it's important to accurately understand the implications of the concentration process. The original grade of 2.925 oz/ton, if representative of the stockpile, indicates a high-grade, ore. However, the point about the need for comprehensive sampling to statistically validate the grade of a large stockpile is well-taken and crucial for a proper assessment of the deposit’s value.