Orenada - more specific observationsAs mentioned, little was known about the high grade veins at the time of the initial resource calculation in 2009. As such, the Orenada structure was not only drilled as strictly a bulk-tonnage deposit, but likely the resource was profile as a bulk-tonnage resource, without factoring in projected extensions of the high grade veins - especially outside of the bulk-tonnage envelope.
I think the new animated video projects out the extensions of the high grade veins, from the new modeling approach at Orenada. I think we can identify the specific resource impacts it will have on the new calculation.
The new resource will still have the large disseminated bulk-tonnage component. The big difference will be incorporating the high grade components that are bulging outside of the rigid (bulk-tonnage) envelope used in calculating the 2009 resource.
Here is the envelope outline used in the 2009 calculation, for Orenada 4 (left) and Orenada 2 (right):
Link, if image doesn`t show up:
https://i.ytimg.com/vi/MNpARk2Fo_s/hqdefault.jpg I posted (below) the new animated video again (first video link below). The grey area represents the 2009 Orenada 4 envelope. Freeze the video at 1:10. You can see the label ``2008 Interpretation Envelope``. Freeze again at 1:14. You can see the full (envelope) view looking north. You will notice that this grey area matches exactly with the resouce (pink) profile from the image above.
Freeze at 3:06. All of those light blue areas represent invidivual envelopes (with high grade veins mixed with disseminated gold), with all averaging (equal to or) greater than 2.0 g/t gold. In addition, the areas in between these envelopes are filled in with (equal to or) greater than 1.0 g/t gold. Each of these invidividual light blue envelopes are 8m to 20m in width.
Freeze at 3:31. If I understand the new model correctly - consistent with my explanations above - the light blue envelopes bluging outside of the larger grey envelope area (used in calculating the 2009 bulk-tonnage resource) represents new resource for Orenada - in the next calculation.
Look at the individual light blue envelopes - parts are in the grey and parts are outside of the grey. I believe the parts outside of the grey area represents new resource. The envelopes at the right bottom maybe best emphazises this. It would suggest that the new model should have a meaningful impact on the next resource calculation, with regards to both grade and ounces.
Also, take a look at the second video below. It is the 2009 animated video of Orenada. It is only 50 seconds long. Freeze at 0:30. You will notice how rigid the the structure is. No bluging areas pushing out the main envelope to account for the 8m - 20m type gold-quartz (high grade) vein envelopes - as we have now.
You can also freeze at 0:33. You will notice the lack of drill holes between Orenada 4 (profiled on right, on this image) and Orenada 2 (left on this image). Good exploration opportunity. Also, bottom right of Orenada 4 - good exploration opportunity.
2016 animated video:
https://www.youtube.com/watch?v=CGCYD4cRx1k&feature=youtu.be 2009 animated video:
https://www.youtube.com/watch?v=MNpARk2Fo_s Also, take a look at Agnico`s Goldex deposit image below. It is located just down the road from Orenada. Agnico is doing a great job with operating the mine. It is a low grade bulk-tonnage mine, yet the cost per tonne is one of the best in the business. The Goldex deposit is wide, but very deep and naturally underground mining. It doesn`t start until about 400 - 500m vertical depth. They have a new zone that starts about 850m depth and goes to about 1,250m, but it is really wide.
Alexandria`s Orenada is bulk-tonnage open at 0 - 250 vertical depth - not nearly as wide Goldex`s new deep zone though. Their new deep zone, as mentioned, starts at around 850m with grade of 1.5 - 2.0 g/t Au and drilled core width around 100m.
Orenada will fit well at Agnico`s Goldex, for processing. Though, I think the remodeled Orenada will have a few options for J/V with other mills in the area - we can go for the best J/V deal this time.
Another point to note is the potential underground, longer term. With Goldex so loaded deep underground, with wide bulk-tonnage zones, and located just down the road, you have to wonder if similar type zones are sitting below Orenada.
Agnico`s Goldex, image:
Link, if.......:
https://s1.q4cdn.com/150142668/files/doc_news/2011/Goldex%20CLS-2011_v001_l427q5.jpg