Teuton Resources Corp V.TUO

Goldstorm resource estimate: +/- 8.6 million oz for 300H

[rockport1]

Hey folks, I had a few moments to complete my back-of-the-envelope calculation for the Goldstorm 300 Horizon.  

My envelope has some detail inside, which is basically a spreadsheet with all the drill results plotted, including azimuth, dip, etc.  Best I can do without having Leapfrog or similar. My estimate can be thought of as a loaf of sliced bread, with each Section representing one "slice" of toast.

Each slice/section has it's own resource calculation. The totals of all the slices make up my total for the GS 300H.  The grades for each section are weighted averages (for intersect length) for all the 300 mineralized sections. I used the drill traces to try and ensure I placed the drill results in the correct section.  Traces were also used to help estimate the width of each section.  I had to make a number of assumptions based on limited info provided, so I did a fair amount of manual massaging of the data.

Results:
387.7 million tonnes grading 0.67 g/t Au (and 0.73 g/t AuEq)
Gold: 8.629 million oz Au (and 9.433 AuEq)

Highest grade section: 112+50  at 0.84 g/t Au (0.94 g/t AuEq)
Highest resource section: 112+50 at 1.972 million oz Au (2.207 million oz AuEq)

Other thoughts:
There are some places where gaps in the drilling were a little wide. Depending on the closest other drill traces, I either excluded nearby results from the calculation, or assumed most likely they should be included.  Think of it as swiss cheese; do you include or exclude the holes in the data.  My expectations are that there are sufficient gaps that the NI 43-101 may have to exclude some portions that I included. Therefore, the resource calc for the 300H may actually be lower than what I have stated. 

Note, I only included the 300 horizon because it has far more drilling data, is a larger zone, is almost certainly to be mined first, and is higher grade than the other two zones.  If they are included in the NI 43-101, I assume their contribution to the total resource will be less vital. 

My own view is that folks expecting much higher numbers in this initial resource are far ahead of the drilling to date. It may eventually get to the numbers thrown about, but it will need another major drilling season at least, to get there.

[stockzorg]

Hi rockport1.  We continue to be pretty close in our estimates.  I  am still cherry picking only the highest 300H grade area of only 800m X 450m.  As a result I show a slightly lower number for Au of 8.14 million oz AuEq.  That's on only 295 million tons at .85g/t AuEq. Based on Iron Cap calculations as a baseline, for all of the 300H I show 9.5 million oz AuEq, so we

[Fabe]

SZ, as usual greatly appreciated!! Also reassuring that different approachs yield very similar conclusion. If those kind of numbers get confirmed, that's what we are all hoping for, the market and industry will be in for a shock!!

[rockport1]

Hi Doug, Yes, it is good that are results are pretty close for the 300H zone.  Gives me some confidence that I am in the right ball park. However, I'm confused about your total Goldstorm estimate of 28.5 million oz AuEq.  Without having done the calculations myself, I thought the other two zones shouls be far smaller at this point. Your total implies about 20 million for the pair

[stockzorg]

rockport1 - thanks for correcting.  I shouldn't post when I'm whacked out on pain meds after dental appointments!  I picked up the wrong column on my spreadsheet. For the 300 Horizon it's ~294.7 million tons at ~.859g/t for the 8.143 million oz. AuEq. For the full Goldstorm deposit, it's ~1.327 million tons at ~.669g/t for 28.570 million. You're also correct that

[rockport1]

Your estimates are interesting.  I haven't done any detailed look at the non-300 horizon, so for those zones, I'm completely guessing based on the "eyeball" test. However, I do believe that these other two zones combined currently have less resources defined than the 300 zone. In other words, I think they are currently less than the approximately 8 million oz Au we are

[rockport1]

Oops, sorry about the end of my message. Cat wanted attention and jumped on the keyboard.

[stockzorg]

I think there are a couple ways to approach the difference.  One is that IronCap is showing 33 million ounces Au in all categories.  When I match IC against Goldstorm, it's Goldstorm that has the higher grades (by quite a bit) and greater thickness as well.  IC is .49g/t, Goldstorm is .67g/t.  IC is no larger than Goldstorm in terms of the deposit footprint. Another

[Countrygent]

It’s a helpful discussion Doug. Snapshot valuations are great for considering the reasonableness of  current SP or market cap. Given that we are facing an extraordinary fiscal and monetary dislocation at the macro-economic level due to the combination of regular market cycles following on the 2008 financial crisis and response, and now Covid and response, what most occupies my thoughts is

[rockport1]

Perhaps, we are talking apples and oranges here.  I'm trying to estimate what has been specifically outlined to date that will be included in the maiden resource.  Any areas without sufficient drilling to establish the maiden resource, I'm not including in my estimate. Taking another look at some of my assumptions, my previous estimate might be a little high. Or, maybe they will

[stockzorg]

I can see for the 300H you show greater width than I do since I am at only 450m. I am showing greater depth and apparently that equalized. For all of Goldstorm I rely on the consistency of the deposit to result in Inferred category reserves where drill spacing exceeds 200m. That would give me a much larger Inferred category if you are using less than 850m for widths between 107+00 and 115+50. I

[huesos]

That's why I hold on to this turkey.

[cskhurasu]

Your calculations look pretty good to me....well within reach for the first resource estimate unlike some of the arm-waving that is well ahead of the data (although possible down the road). A key question: did you make an assumption on mining shapes? 43-101 requires that you constrain the resource by a shape...either a pit or block cave...that is technically and economically feasible. So, if it