Potential hidden value?When it comes to assaying samples, often the company gives priority as to which results they consider primary and which are secondary. In the case of SXL they have focused on mainly gold at the Reserve property, and if you read their release “selected cores” were analyzed for gold and silver. What about the cores that were not selected? We have mainly gold results to this point as far as I can see, and this is their primary. What should not be over looked is: what are the concentrations of the secondary metals? When gold is present in such large g/t , as in the Reserve Property, there will be copper and silver associated but unknown quantities (at least to the share holders). When sufficient copper,lead, zinc or any other metal are found in the “unselected” core samples, the overall value of the ore body can triple or even better.
If their geologists didn’t think that there was value in the “unselected” core samples, they would not have 355 assays pending on them. Why squander finances on analyzing rock to prove it is a worthless rock? This applies to all their properties. Obviously there is more to these scenarios than simply the outward gold/silver values!
What about the other 355 core samples pending? These are no doubt secondary (Cu, Pb, Zn, REEs, etc depending on which property they are focused on). And it is possible to have two different analytical zones (a mineralized zone of Cu, Pb, Zn), and a deeper zone in the same drill hole with the same mineralization or more importantly their main target element which could be gold or silver or any other metal. One may be a primary target while the other a secondary.
This way they narrow in on the ore body(s), which enables them to determine it size, depth, width and potential tonnage at minimal cost. They end up with a very conservative estimate of the overall size and value of the ore body. However once the secondary metals are taken into consideration, value can escalate several times over…..as well as share prices!
SXL seems to mirroring another company I followed, that is now a successful producer in the BC interior, in the early days of exploration (Imperial metals {iii –V}) (SP of iii-$23-$24) All of SXL properties (which assay considerably better than iii) are open in every direction indicating that proven reserves will go up. Hence we have great potential from only what we know now, but the more subtle values that are still to be revealed, should prove extremely interesting.
Finding and developing an ore body(s) is like putting a large puzzle together, without having a picture cover to reference. Piece by piece or drill hole by drill hole we are starting to get the picture…with all the gold, silver, zinc, copper colors starting to emerge! Patience! Patience! Patience! AND DD.
As I see it,
Solver