RE: RE: RE: RE: NEWS - XRC DRILLING AT CASPICHE EXWhat really hit me about the potential of a second test on vector 34was the fact that the companies reference to the deposit tending to becrescent shaped.
Horseshoe, dogleg, crescent, etc. -- I think the company was only trying to say that the core may actually wrap around the anomaly instead of being at its center. If so, it obviously implies a greater lateral extent. Not sure this is very surprising as you and I both could already visualize the potential lateral extent of the system prior to this press release.
making a second test of vector 33 either because their new model of thedeposit directed such a test or else they figured they had drilledanother hole 14 that was just off the main mineralized zone.... assunshine20 pointed out hole 33 did intersect an incredible intercept oflow grade mineralization.
It seems very possible that there will be ore grade to the east of hole 33, the unanswered question being its depth.
on the oxide zone.. there are some impressive lower grade interceptsbut I don't see them in themselves being enough to justify theconstruction of a mine. These intercepts are primarily the creditswhich will take some sting out of the strip ratio costs for theunderlying sulphide deposit.
If they can get the oxide number up near 2 million ounces and the metallurgy is good, this becomes a large shovel and heap operation. Typical oxide leach plant might be around $250 million, all in cost to mine at $250/oz. We get a healthy NPV even at $500 gold price.
those were some interesting thoughts sunshine 20 raised on thepossibility of the ore potentially extending outside the anomaliesbounds. I've seen such before but I'd want to see the drill results tobelieve them. That kind of test won't happen until next year at theearliest... I'm only expecting two more holes beyond those alreadystarted this year. The second test on vector 33 and the stated test toundercut vector 14... These will be two very long holes and I suspecthole 36 already underway will consume the extra meterage the companysaid it will drill..
It so happens that stepout drilling to the east of hole 33 is in fact outside the footprint of the anomaly.
I see the a deposit of closer to 350 million tonnes between vectors 14and 15.... There is plenty of room for expansion of the deposit andthis is why I'm very excited about this project..
Yes, at a lower cutoff grade than 0.75g/t. I meant 200 million tonnes at a 0.75g/t cutoff, not average. Big difference, my bad for not clarifying. Apples to apples comparison to Cerro Cesale, 350 million tonnes is a better number.
One last point the grades might be higher then we expect for the highgrade central core of the deposit situated between vectors 15 and 14...Once they establish cut off grades and take slash the uneconomicmineralization out of the drill holes the grades should swell.. hole 32especially might be much closer to 1.23 grams then .89 grams when thewaste mineralization is cut out of the picture... no one is talkingabout the copper much yet either......
Agreed, but I'll take a different tack here and suggest that Caspiche might be robust enough to support a very low cutoff (the key is more the copper not the gold), in which case the entirety of hole 33 might end up inside the ore envelope. Here is where things get really blurry and uncertain and so the company pays the consulting geos a couple million bucks to tell us with precision what's what.