Imwauna potentialhttps://www.researchfrc.com/research/pdf/NGG/NGG%20Update%20-%20April%201%2c%202008.pdf
Excerp from analysis:
Resource Estimate: This property has a historic, non NI 43-101 compliant inferred resource
estimate of 990,000 tonnes at 6.1 g/t gold and 12 g/t silver, equaling 194,000 ounces of gold.
This resource was calculated by Macmin Silver Ltd (ASX: MMN) based on 1,204 meters of
drilling in 15 holes in the late 1990s. According to management, the company is targeting an
initial resource of 2.5 - 5 million tonnes at 8 g/t gold. The potential for a Misima sized
orebody of 4 - 5 million ounces of gold has been discussed, and is the company’s longerterm
target for the deposit.
We believe the high-grade drilling results indicate great potential for a resource at
Normanby/Imwauna. Based on the company’s drilling results and the known dimensionsof
the vein, we have calculated a preliminary resource estimate using conservative factors. This
resource is 3.15 million tonnes of ore grading 8 g/t gold and 12 g/t silver equaling 810,211
ounces of gold and 1.22 million ounces of silver. For our valuation, we will treat our
calculation as an inferred resource and will be discounted by 50% for valuation purposes.
Potential: Management estimates that only 15% of the mineralized portion of the property
has been drilled. We believe, as does management, that this property’s potential, including
its very high-grade ore and Misima style mineralization, gives it a strong possibility of
acquisition by a larger mining company. Thus, the company may consider selling the
property rather than putting it into production.
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Just based on drill results, I have little difficulties to come up with that big initial resource, but I'm no geologist ...
Clearly they have been guided by management.