PINL:VLTAF - Post by User
Comment by
eebleron Jun 24, 2010 6:48am
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Post# 17217091
RE: RE: Last two minutes
RE: RE: Last two minutes
Conservative was definitely my intent. I would love to see it higher.
For the depth and narrowing, it is hard to tell what really happens below 200m. I haven't found any illustrations that show the interpretation of the ore body below 200m. I went back and looked at all the Volta news releases and they all cut off around 200m. When you look at the various cross-sections, some of them are wider at the top and some of them widen out as they go down. Bands of higher-grade suddenly appear half-way down, and some start at surface and dwindle away by 100m. In the hanging-wall zone, there is a big fault angling across the top so there is not a lot of gold in the upper 50m but there are wide bands in the lower section, and one of those bands branches out into two bands about 100m down. On the other hand, you look at the cross section for the 5150N zone and below 100m there is nothing - a big fault looks like it has sheared the bottom part away.
I think that if the average g/t goes up by 50%, then the ozs go up accordingly. My understanding is that they only quote mineable rock in the total tons and that because it is an average, it applies to all. If Randgold was rougly 71M tons, then two-thirds of that would be around 47M tons. If you go back to the straight 2/3rds numbers, 1.75M ozs is the baseline, and every increase of 0.1 g/t is good for another 175K ozs. The biggest question in my mind is still around total tons. If they are talking about something that is still in the range of 70M tons due to additional areas outside the Randgold zone, that is still 2.5M ozs even at only 1 g/t. Each improvement by 0.1 g/t is another 250k . That is why I wanted to be conservative, because if it comes in around the Randgold original that would be just fine, but if tonnage and/or g/t is a lot higher than a baseline of 47M tons at 1 g/t, it isn't a stretch to believe it could surpass Randgold's original estimate of 2.65M. But at this point I'm just hoping to see the sp hold the line on what could be another challenging day in the worldwide economy.
eebler