Mountain Lake Resources Inc V.MOA

VL New Resource Estimate Projection

[TheRock07]

The Jan 2005 underground resource estimate was based on a 5 g/t Au minimum cut-off (when Au was US$425 per/oz) and a 3 m minimum mining width.
Even with those estimation constraints, the 43-101 resource estimate was 443,000 oz at an average grade of 10.5 gms/ton.

The new resource estimate will be affected by 3 factors.....

.....the superb drill results that have been obtained since then , including substantial extensions of the auriferous zones ,

.... it will also convert the current underground resource to an open pit resource.

......The open pit resource estimate will use a cut-off of ~0.5 g/t Au (based on the current Au price) and no minimum mining width. This will result in the inclusion of Au ounces associated with intersections grading between 0.5 g/t to 5.0 g/t Au that were ignored in the previous estimate.

I have previously posted my own ball-park estimate ( about 1.8 million oz ) excluding cut-offs and dilution, but concluded that the new 43-101 has an excellent chance of being 1 million oz or higher.

A second way of going about this is to re-estimate the 2005 estimate, but using a 0.5 gm cut-off rather than a 5 gm/ton cut-off. This will give some idea as to what the resource might have looked like in 2005, had they used the 0.5 gm/cut-off.

This is a ten-fold change in the cut-off, which is quite unusual and I could find no exemplar.

However, I did find one of similar nature.......converting an u/g estimate to bulk tonnage open pit.

Here it is.....


Category Cut-off Contained gold

(g/t) (oz)

Indicated 1.0 2,453,500

Indicated 2.0 2,031,400

Indicated 3.0 1,561,700

Indicated 4.0 1,234,300

As can be seen, moving from a 4 gm/ton cut-off to a 1 gm /ton cut-off increased the gold resource from 1.234 m oz to 2.453 m oz or pretty close to a double.

For VL, the new cut-off will be 0.5 gms versus 5.0 gms in 2005.

That ensures imo that the 443,000 oz would have at least doubled to about 900,000 oz, had they used the 0.5 gm/ton cut-off in 2005.

Since then, VL has had a huge amount of infill and extensional drlling that have advanced both the strike and grade substantially.

This suggests rather strongly that the new 43-101 for VL will be above 1 million oz of gold and could nudge the 1.5 million oz level.

This would make VL a substantial gold deposit, whose spatial parameters continues to expand the foot=print of the resource.

If Im not too outspoken, this would make VL the largest gold discovery east of the Abitibi Belt of Quebec.

And, we shall know soon enough..