Points of interest - Solver's musings. Excellent news about the purchase of the remaining properties! Good move my mgmt.
Points of interest:
“This area between Val-d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining. “
No reason to think that this property doesn’t have added value in copper!
“A total of 17% of the gold was recovered through gravity and an additional 80% was recovered in gold bearing sulphide flotation concentrate. Additional mineralogical testing is underway to evaluate the distribution of the gold grains in the gravity and the flotation concentrates. This information will be used to plan further metallurgical optimization studies.”
“The Company decided to address the metallurgical risks early in the planning process to develop an economically viable gold deposit.”
This step is very prudent, as there are ore bodies with very high metal values but the matrix is too complex for commercial recovery. Costs of recovery could exceed metal values, thus making it un-economical. Investors have been misled by high metal values only to discover that their project is not economically viable….and were the biggest financial losers. Also there is evidence from former metallurgical testing that this ore body can be cyanide leached (heap leach) which has very low cost recovery. Critical information!!
“In addition, new gold mineralization was also intersected below the 100 meter thick, weakly mineralized intrusion (the “Red Dog”) that intersects the Company’s known gold zones. This result, when combined with the Company’s recent deep penetrating Induced Polarization (“IP”) survey completed by Insight Geophysics, indicates that the known gold zones extend at depth. This area will be further explored after the Company completes its initial NI 43-101 compliant gold resource calculation in the early fall of 2011.”
“The critical point that investors should understand with this success is that none of this drilling is infill or twinning of existing holes but rather extends known gold zones.”
The above comment(s) shows that they are nowhere close to finding the true value/size/limits of this ore body. Huge room for expansion!
“EAG-11-272 was an exploration hole testing an IP anomaly, some 150 meters to the East of hole EAG-11-275. The hole intersected several mineralized intervals. Assays are pending for those intervals.”
“Eagle Hill has now completed its scheduled 16,300 meter drill program and the assay results of the remaining eleven drill holes are still pending and will be released when available over the next two months.”
“In addition, the new Induced Polarization survey has very good depth penetration and has shown that there may be further mineralization below an intrusion that cross-cuts our existing gold zones at a depth of 400 meters.”
We should get a much clearer picture of the progress when all the assays are in……..but Mr. K has stated in his presentation that they would not try for a Ni 43-101 until they suspected that were very close to the 1M oz. He then stated that they were looking at 2 or 3 M in the future. He added that Ni 43-101 was due end of Sept. Also labs are back-logged with winter/spring/summer drilling projects for many companies…… so expectations of quick drilling results might be optimistic.
In the presentation, Mr. Kitchen refers to “bulk tonnage” scenario. This may be where the real value lies. As good as the high grade results are, large bulk tonnages more often than not……are where the real value of an ore body lie. With gold up $28+/oz at $1786. And silver within a couple of pennies of $40, (at this post) cut off grades in bulk tonnage go down, and valuations go up.
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In referring my associates to EAG, I find that I’m the last kid on the block to know about it. The word is getting out. Yesterday on Alpha, EAG was trading at
.215, but it did not show up on Stockhouse……??
Interesting times ahead for EAG.
Remember your personal DD
Solver