Baru Gold Corp V.BARU

Alternate Symbol(s): BARUF

Metals & Mining Gold

Baru Gold Corp. is a Canada-based junior gold developer with NI 43-101 gold resources in Indonesia. The Company is focused on developing and producing precious metals projects in Indonesia. The Company’s focus is on developing precious metals projects with significant resource upside potential and near-term production capabilities. The Company’s Sangihe Gold project mineral tenement consists of one block covering the southern half of Sangihe Island, located between the northern tip of Sulawesi Island (Indonesia) and the southern tip of Mindanao (Philippines). The Sangihe Project covers 42,000ha; this includes the Bawone, Binebase prospects on the eastern part of the island and Taware prospect in the south-central region with infrastructure in place. The Company has a 70% interest in the Sangihe project.

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Baru Gold Corp

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Comment by sal_bandoon Jun 01, 2011 3:49pm

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Post# 18658389

RE: RE: RE: RE: RE: Sal_Bando.....perhaps this mig

Mountaineer,

Thanks for your patience. This is what I am trying to communicate:

"The grade of blocks measuring 12.5 metres by 12.5 metres by 2.5 metres were estimated in un-folded space using the Ordinary Krige algorithm as utilised by Surpac Geological Software (v6.1.4). The un-folded model was refolded into original 3D space; block volumes were checked against wireframe volumes and tonnage and grade was validated against an ordinary kriged 3D model, as expected the unfolded model performed better, better reflecting the nature and distribution of gold and silver grade....."

You see the report has split up the entire block into mini blocks measuring 12.5 by 12.5 by 2.5. These blocks have been estimated using the Krige algorithm (which happens to be a type of linear regression tool). It seems to me that if Graham is right he has to be able to accurately calculate the following:

1. The number of mini blocks in the entire block
2. The volume of each block
3. The grade of each block

Further he has to say that the total block is the sum total of each block. Now, it is not possible to transform a big block structure like the one described in the report into nested structures. Take my word for it (I studied this thing because I am a statistician) - it is called zonal anisotropy in statistics and it cannot be done in the way that Graham is suggesting. Geometric anisotropy generates an abstraction and uses a ratio to calculate the volume of the total block. And if the volume of the entire block cannot be calculated in this way then certainly the ore body cannot accurately be calculated in this way either. The software that is being used to generate this report has some built in parameters that use a semivariogram to estimate the parameters of the nested blocks. Now, I am not saying he cannot do a guestimate of the ore volume, but that is what it will be - a guess. Anyway, I don't mean to downplay the importance of what he is doing but to just remind everyone of the limits of the technique that he is using - but if it helps him and those around then more power to him.

Best