RE: more disappointing news Quote from ATV news release and history:
“Results of these and other drill holes from this 2011 drill program will be added to NI 43-101 resource estimates on the Deposit currently being calculated by Wardrop, a Tetra Tech company.
All three drill holes were designed to test the down-plunge extensions of the Sanders and East zones which are two of the four gold zones comprising the 1.5 kilometre strike-length of the East Coldstream Deposit.
The mine (( former Coldstream Copper Mine) produced in excess of 102 million pounds of copper, 22,000 ounces of gold and 440,000 ounces of silver from 2.7 million tons of ore.”
Gold is over $1800/oz, silver over $43/oz. and copper over the $4/lb. (At this post).
If share holders were expecting bonanza grade results with visible gold nuggets for every drill hole, they have not read up on the history and geology of the entire area. The deposits in this area are classified as “bulk tonnage”, or in other words, lower grades in mineralization but greater tonnage. ATV’s drilling fall well with in historical gold grades (1-10 gpt) for producers in that area. That is also the realistic expectation of this area.
There will always be the occasional extreme high gold result over a small distance, but the real value lies in large tonnages and consistent gold values. With high gold prices even the 0.1 gpt in the over burden, begins to add value. Cut off grades are lowered in proportion to the rise in gold prices. Especially is this true if heap leach methods can be used to recover gold/silver.
What seems to be over looked too, is that the historic Coldstream area has been mainly a copper play, with secondary, silver values, then gold….the least plentiful. Because gold is given star billing doesn’t mean that there are no other values in copper and silver….perhaps surpassing gold by several fold. What other metals are there too?
The main importance in any EXTENSION drilling program is that ANY gold is found…to do exactly what they have set out to do…..extend the gold zone to ADD resource estimates to the pending 43-101. With most large tonnage producers world wide, average grades run 0.5-1 gpt to make it commercially viable.
To my point of view, the results are consistent with expectations and do not necessarily constitute failure on the part of ATV. The results are not disappointing, but consistent with expectations….perhaps….. a little better!
The history of the Coldstream area ( in ATV’s Web page) is a good place to start personal Due Diligence to align expectations with reality!
Then there are their other excellent properties………….
My observations;
Solver