RE:RE:RE:RE:RE:RE:RE:RE:RE:Hedging -= shot themselves in the footfirecracker74,
Take a look at page 11 of the MD&A.
A total of 6,906 meters were drilled in the third quarter of fiscal 2020 in El Valle and Carls, which is 23% above second quarter drilling. In El Valle. 4,838 meters were infill drilling and 1,001 meters were brownfield drilling to the East of High Angle to continue with the exploration drilling to intersect narrow oxides structures and add new resources, additionally in Carls 1,067 meters were brownfield drilling.
Drilling activity per area: - A208: 2,676 meter of infill drilling were done in this area moving inferred resources into measured and indicated.
This program will be continue along fourth quarter to continue the orebody definition to the North. -
A107: 1,668 meters were drilled in this structure with two targets, one of them to convert inferred resources into indicate in the South part and the other one to increase the mine plan confidence in the upper levels which will be mined in the next months.
• Area 107 (1,439 mts) to convert the Inferred Resources in the upper part; mineralization with high grade is open upwards (e.g. ddh 19V1743: 19.3 mts @ 10.16g/t Au and ddh 19V1749: 5 mts @ 159.7 g/t Au).
• Area 208 (1,309 mts), infill program was completed between 325 and 400 level to convert the Inferred Resources, two mineralized bands were defined with continuity and some high grade intersections, e.g. ddh 19V1729: 5.50 mts @ 13.65 g/t Au, ddh 19V1730: 8.35 mts @13.79 g/t Au.
I assume an average pxide ore grade of 6 g.t in my production model. My sense is that ore grades were low in FQ3 because they blended in more low grade skarn ore. Yet the mining throughput increased from the previous quarter. So my thinking is that Orovalle could have mined some high grade oxide which was not processed during the quarter.
The 60 percent oxide figure is an adjustment for unsold gold in the inventory left over from FQ3 which I am assuming will be sold in FQ4.