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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Post by goldencraneon Jul 21, 2014 8:20pm
165 Views
Post# 22767822

What it actually means

What it actually meansOK, so you've got the reports - what does it mean in layman's terms? The first post shows that 287kg (a large size sample) was tested and screened to remove fines. 57% of the sample was very fine (80% below 11 microns). This component was assayed and only contained 4% of the gold (0.13g/t). The implication the this aspect is that the fines can easily be discarded without crushing or grinding (just scrubbing which is like a very low power mill with no media). Getting rid of the fines takes away material with only 0.13g/t and leaves the higher grade material (which graded 4.28g/t based upon a 10kg sample test in that case). They also completed a test which characterised how coarse the gold was "size fraction analysis". It showed 79.5% in the size range 75-600 microns with 11% above 600 microns. This is fairly coarse but not excessively so. It means there are not going to be huge outliers (which you can also see in the drill results). The second post tells us the results of the 10kg sample of "deslimed ore" (ie 10kg from the 287kg after 57% of the material was discarded as slimes). the grade of this material was 4.28g/t and it had a GRG result of 92 which is exceptionally high and indicates 90% gravity recoveries are possible from that material. OK what does that mean? Well, desliming and scubbing is very cheap like one dollar a tonne. So if the sample tested was representative then you spent hardly anything and end up with material that grades 4.28g/t which you have to then process. At that grade you'd make money no matter what process you used, but if you can get a 85-90% gravity recovery the costs of further processing will be very low and the cost to build the plant will also be very low. So in black and white you can see the potential here. If the SGS sample is representative then this is incredible. now maybe the market is saying it isn't representative - this is what they ought to find by testing somewhere else another completely new sample.
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