TSX:LSG.DB - Post by User
Post by
rollonon Feb 27, 2015 12:04pm
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Post# 23472271
Gap
GapFrom Scotia research on latest news release. Does not include Bell. Thought I would pass this on. . from the 144 Gap zone (SW of Timmins mine) Higher grade than previous releases. We estimate that the average length of intercept from today's release is 12.7m with a length-weighted average grade of 5.61 g/t Au. All results to date have a length-weighted average grade of ~ 4g/t Au and an average width of 9m. . Initial size estimate may start to remove mine-life overhang. LSG provided initial dimensions for the core of the zone (open for expansion), which we calculate as having a tonnage between 2.5 and 5Mt (using Thunder Creek density). By using the midpoint of the provided grade range (4-7 g/t Au), we calculate a rough resource range of between 450 and 900koz gold. This zone will require significant drilling to define a geological model and convert these intercepts to resources and ultimately reserves before we get a real sense of mineable tonnes and grade. Our current mine model for Timmins West has a five-year mine life (reserves + estimated resources) with ~645koz at 4.6 g/t Au. LSG is expecting to be in a position to start UG drilling by mid-year; in total the company has six surface rigs turning, with a total 2015 drill program of 120km