20 million OZsEODWAY I think you are right on your 20 million OZs. The last drill what was terra incognita was 726 meters of mineralization. To put that in perspective when we have 2 GPT PTE (grams per tonne, Platinum Equivalent), our current resource is based on 400 million tonnes, give or take. With a hole that hits 726 meters of mineralization- from the start of the ground and open at the end, if this hole was the same length and the same width we would have roughly 400 million cubic meters. If we had an average density of 3 that would be 1.2 billion tonnes- or a 300% increase in total resource putting us at over 30 million OZs. That is no more than a guess, but the point is you don't find that kind of consistency very often (OR EVER)
Now Heres the thing.
That 7 million OZs gives no credit for Ni Cu Co Rh Ru etc. The other thing to remember is that the grade here is really, really good. Look at Milligan, New Prosperity, Minto, etc, and we are talking about almost double the grade. Remember it costs as much to move rock no matter where you are at as long as it's open pit so we have a huge advantage.
Newgold may have rued the day they dropped so much money into the Blackwater Gold project, but with gold and silver breaking out right now, that might be hasty regret. They paid 500 million for 8.8 million ozs of Gold and 27 million Ounces of Silver. Total value is 13 or 14 billion. Average grade is .87gpt Au and 6gpt Ag. We have 2gpt Platinum Equivalent so we have more than double the grade. Double the grade means very cheap mining costs because we put half as much rock through to get a little more pay than they do. So going by that lofty 2011 pay out our project with 20 million OZs plus ni and cu would get is into the billions of dollars, which would get the Share price to where it really should be in double digits (not penny double digits).
I have ranted too long. One thing I have noticed is that the world is speeding up. This downturn in the metals may be over already despite all the money ready to buy up at the bottom, getting a little nervous, again!