Technical Report NotesDouglas IR group just released a preliminary assesment report by Dr. David Groves. He's a board director and a well respected geologist. Dr. Groves went to Douglas' newest property Mbwemkuru in Tanzania. Mbwemkuru is an alluvial gold depost (i.e. loose gold in sand and gravel). Initial sampling averaged almost 10 grams (1/3rd ounce) per ton. Harp Sangha, the CEO of Douglas, had Groves go to the property and he produced the following report:
Dr. Groves Initial Technical Assesment Report:
The report gives the reader a high level view of what the deposit is. Groves notes that the strike length is greater than 15 km with a width of "several hundred meters". There are low and high grade zones of varying thickness. Non-scientific sampling has seen gold grades up to 50 g/ton.
What I was surprised by is that the deposit may contain decent grades of Uranium, Thorium and Lanthanum. One sample returned 301 ppm U, 527 ppm Th and 300 ppm La. 1 ppm at 1 million grams/ton = 1 gram/ton. This means 301 g/ton Uranium, 527 g/ton Thorium and 300 g/ton Lanthanum. I don't know anything about Lanthanum pricing but at today's spot price of $64/lb, the Uranium would be $42/ton. The real wild card is Thorium. The link below says Thorium fetches a price of $5000/kg. Assume you could get $1000/kg in concentrate, the Thorium could fetch over $500/ton. Falcon concentrators are likely going to be used to "mine" the gold from Mbwemkuru as all is needed is to separate the gold flake from sand and gravel as opposed to crushing, mill grinding and cyanide heap leach that most gold producers use. I'd assume that Uranium, Thorium and Lanthanum could be separated out at the same time as gold since they are more dense than silica.
Website devoted to strictly thorium (thorium oxide has a melting point of 3300 C):
My interest in Douglas Lake is the gold deposit at Mbwemkuru, which using conservative numbers and a gold grade of 1g/ton I've come up with a 5 million ounce deposit. I spoke to the CEO a few weeks back and apparently Dr. Groves thinks there may be 10 million ounces at Mbwemkuru. There's still a lot of work that needs to be done to prove up the resource but with a present market cap of $25 million, the upside potential for the stock is simply staggering should the multi-million ounce resources be proved up.