RE: RE: RE: why only half the ounces? As always, the GCU management again used very conservative numbers for this PEA ($1300/oz Au and a cut-off grade of 0.40 g/t). For me, it was a pretty decent PEA report.
I have not read the entire report (we’ll have to wait for GCU to file it on Sedar).
With respect to the gold and silver recoveries of 80% and 85% respectively, I suspect that these were way too conservative. Both Rainy River and Osisko (Hammond Reef) in their PEA’s, reported 91%. So GCU will likely improve on that number.
As I read today’s news report, I guessed that the starter open pit will be more to the west, and take in the Main Zone (most of which is on land) and a portion of the western end of the Portage Zone (under Springpole Lake). This probably explains the 2.2M oz Au in their press release today. We know that initial resource for gold stands around 5M oz. Where is the rest of the 2.8M oz Au that they didn’t report in today’s news release, you say?? Well it’s probably in the eastern extension of the Portage Zone, which should be a future open pit. The gold grades in this eastern extension of the Portage Zone are also as good as anybody else’s in the area (open pit), including Rainy River and Osisko (Hammond Reef).
Gold Canyon: 1.25 g/t Au
Rainy River: 1.25 g/t Au
Hammond Reef: 0.63 g/t Au
I also suspect, based on the maps that anyone can see on GCU’s website, that there may be an easterly extension of the Portage Zone. I don’t think it has ever been drilled.
So far, I like what GCU management is doing.