RE: RE: Talked to Roger“Why don't you just come out with an exploration update in the form of a press release and let us know whats going on. Then maybe investors will take notice. Like I posted earlier, how can you plan a 50,000ft drill program with no assays?”
If you don’t have assays results, what are you to post?
Made up numbers just to please the market. That’s what Bre-X did.
You can’t post lab assay results what you don’t have and there is no point in posting what you think is there b/c then it just sounds like hype and no one will take you seriously. It has to be 3rd party results to add credibility.
Assays are for people that don't see the core, like you and me, to get a better understanding of what’s going on. The people that are actually onsite see that core before it goes to the labs. They know more or less what their looking at in terms of a range of grade and thickness (visible gold). That’s why they can plan a drill program prior to receiving results. Now whether the results come back from lab at 0.5 g/t or 50 g/t it’s only relevant in calculating the actual gold in the ground for the resource report. Why stop drilling? The purpose is to prove up as much gold as possible. So that means more drilling regardless of the grade. The more you find the more you’ve added. So if you see the structure keeps producing Au interscepts you keep going. It’s when no Au is being intersected that is a problem. Then you must wait for results to come back to see whats going on to potentially change your current approach.
Au is at $1,400/oz. There are deposits that are 0.3 g/t that are very profitable at that price. People are still thinking like you need 5 g/t or more to make money. News Flash People – Gold isn’t $300/oz anymore! And it hasn’t been for a while.
Osisko paid $372million ($55.5/oz resource) for Brett Resources when Au was $1,000/oz. Brett had 6.7mm oz Au @ 0.8 g/t (all inferred) at the time of the buyout. 97% of the entire resource was within 300m of surface.
The closer to surface your deposit is the lower the grade needs to be in order for it to be economic. Higher grades are just a bonus that increase your margin. Osisko’s Malartic deposit’s grade is 1.13 g/t and cash costs expected to only be $354/oz. That’s lower than Red Back, I Am Gold, Randgold or even Agnico-Eagle’s cash costs of overall production.
People are going crazy over Spanish Mountain now. Its grades are in the 0.58 g/t range. Thats why you don't wait for a drill report. Because with these gold prices even very low grade Au deposits are very economic.