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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 29, 2014 2:33am
195 Views
Post# 22789670

Nugget effect

Nugget effectGuys, I'm not going to harp on about the nugget effect because if any of you read my first post on financial metrics you can see I put in a upside case which includes a nugget effect. This is simply a scenario and not a prediction however I personally believe there will be a substantial positive nugget effect when this thing produces. I will say several things that may interest people. The reason for the nugget effect in this deposit is a supergene enrichment in the oxidised and transitional areas which occurs as a result of various factors such as gold's density and re-precipitation over millions of years. The 43-101 Sulphide zone has a grade of 0.94g/t vs the oxide and transitional grade at 0.87g/t. Why is this? If there is supergene enrichment then the sulphide zone grade should be lower. It isn't and this in itself points to an underestimation of the grade in the oxide zone. Likely the combination of enrichment factors has also increased the size distribution of gold. As I previously stated the 43-101 is not good work, the new estimate should be completed more rigorously and it will be interesting to see the effect on grade which will be completely independent of any nugget effect. If however there is a nugget effect on the oxide and transitional zone, it will be seem over the entire zone to one degree or another. Perhaps the effect will be highest at surface and fall off with depth. Time will tell. The nugget effect is simple statistics related to sampling error of a large population with a small sample. It isn't rocket science. The fact is that if Kobada contains an as drilled grade of 0.87g/t the grade to the mill after slimes removal will be closer to 1.8g/t. This is not low grade and will be highly profitable given the simple subsequent milling steps.
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