RE: RE: 2011 ANNUAL GENERAL MEETING OF SHAREHOLDER“If the 43-101 will be one with a lower cut-off grade, then we have many more ounces I believe in the preliminary block model than the 2.4-2.6 million ounces estimated early on as this estimate was based on a higher cut-off grade and only to depths of 100 meters and was according to Basa a conservative one.”
The block model was based on 1.35 g/t and 70 m true thickness. A lower average grade of say 0.5g/t means you get a 0.5/1.35 = 2.7 times lower amount of Au for that same volume of rock as assumed in the original estimate.
GBB got their estimate number by assuming 1.35 g/t, 70 m true thickness, 600 m length, 500 m width and a specific gravity of 2.65 for their rock to come up with 2.5 mm oz of Au.
If one assumes 0.5 g/t and 150 m true thickness (Frank said thickness has doubled since the estimate) with the rest being the same you get 1.86 mm Au oz in the block model. Or about 3.73 mm oz over the 1.2 km of strike length there is today. Now that assumes a 0.5 g/t average grade of continuous mineralization throughout, which will never be the case so that number will be lower. But the remainder of the Phase 3 drilling will expand the current area of mineralization and add more tonnage to the current area to easily offset the loss of Au oz from mineralization not being continuous throughout the existing 1.2 km of strike length. So I’m assuming close to a 4 mm oz Au estimate in the NI43-101 when it’s released. If you notice BMR they have stated the 4 mm oz Au number as well over the last 2 weeks or so as well.
The actual mined grade will be greater than the reported grades. This is certain, but there is no point in stating that at this time as it will not be in this 43-101 report and that is what the market will value this company on when it comes out. You will be rewarded for this when it actually gets mined and that is a very long ways off and GBB will not get there IMHO as they will be taken out long before that happens.
Now the problem is between now and the 43-101 report. The market looks like complete sh@t for these juniors so after the ugliness is over this should be a good name to hold. Until then all these juniors look weak. It’s that type of a year.