RE: RE: RE: RE: RE: Fundamentals!! Hey Iml18...
I believe you are missing one important point and the market needs confirmation moving forward which is going to take a lot of time and confirmation drilling to prove up...grind then grind and grind some more...."boring" sort to speak.
They are going to have to do a lot of infill drilling, in otherwords drill holes much closer together to dilineate the mineralization or lack of to support the Breccia Zone....the excitement will slow as this drilling will identify much lower grade material and it appears that there are going to be a number of empty tonne resource zones.
Going back to my model and at this time the only region that has significant drilling is the Breccia Zone which points to a resource of about 2 million ounces which are found in a block of about 23,437,500 tonnes.
Using my model Open Pit Model which includes an area of 750 M (length) X 650 M (width) X 250 M (depth) which outlines the outer limit parameters and subtracting the bench material that must be left behind we are looking at 58,828,500 cubic metres of mineable resources.
58,828,500 X 2.50 (rock density) = 147,071,250 tonnes of mineable material.
The Breccia Zone Block is 23,437,500 tonnes.
If we take your figure of "zero" ounces in the surounding area the strip ratio will be:
147,071,250 tonnes divided by 23,437,500 tonnes = 6.27 (factor of 6)
In otherwords, they will have to remove 5 tonnes of waste for every 1 tonne of ore.
This is a very high strip ratio in the mining world.
I used your extreme figure of "zero" ounces, future drilling will establish the true ounces and strip ratio...this will take a long time to conclude.
The market may just focus on the Breccia Zone for the time being which points to 2 million ounces...this may not be enough to support the current share price....I went to the sidelines because of this possibility...another thing...the economics of the project may of come into doubt with the latest news release....time and drilling will give us answers...just how many investors will stick around is the question that will be answered over the next couple of weeks.
I always support my decisions...coming in..and...going out!
Take Care!
Regards,
Digger144