Treaty Creek status update: Looks good!After the recent run up in share price for Tudor, Teuton and AMK over the past few months, I decided it was time for a status review, with comparisons to past releases and technical reports. I'm happy to say that the Goldstorm project continues to increase in quantity, but more importantly, in quality.
Given that the deposit is so large, it is my opinion that "marketing" should focus on the "quality" of ounces. Thus, looking only at the Pit Indicated ounces, we are 13.138 million of 1.05 g/t AuEq. That is a sizable deposit, right? This is based on a cut-off grade of 0.5 g/t.
If we increase the quality by increasing the cut-off grade to 0.7 g/t, we are left with Pit Indicated resource of 11.525 million AuEq ounces at an approximate grade of 1.16 g/t. Still very impressive, no? I would give up 1.6 million AuEq oz for that 40% increase in cut-off grade.
Now consider a further step up in quality by increasing the cut-off grade to 1.0 g/t. Here I am estimating, because the 43-101 tables only show combined pit & underground at this cut-off. I am guesstimating that about half of the resources at this cut-off are for the Pit. Therefore, we will have about 7.6 million AuEq ounces at 1.48 g/t of Pit Indicated resources.
If they can convert the inferred numbers to indicated, the resource will approach 10 million AuEq ounces. Of course, they still have not defined the limits of the deposit, which is also increasing in grade to the N/NE, so these numbers will all undoubtedly go up.
The preliminary processing and metallurgical testing continues to show improvements as is typically the case for these early stage projects. Further results should be completed later this year.
In summary, Goldstorm has a starter pit of 7.6 million AuEq indicated ounces @ 1.48 g/t. A number that will surely increase in size, and potentially grade after 2023 drilling is complete. You can double this number to 15 Million AuEq oz if you include the underground portion at the same grade. This is a monster sized deposit with every indication it will become one of the largest mines in BC history.