Copper BelleI appreciate Dino's comment today that the gold equivalent grade from hole CB-18-39 is 27% higher than the Seabridge Iron Cap grade. However, I had been calculating my valuation of Copper Belle results based on gold grade X length alone. On that basis, Iron Cap's gold grade of .49g/t in the Probable category is less than half of CB-18-39 (.981g/t).
Going back to last year, I had calculated drill results on the north end of Copper Belle to be about 9% higher per hole than the Iron Cap .49g/t (based on grade X length). The Iron Cap Probable reserve based on that drilling was 3.5 million oz. Au. The Iron Cap drill area was 1km by 500m at that time and the Copper Belle drill area was about half of that total. So my estimate was 1.8 million oz. Au for all drilling through 2017. The recent estimate by Tudor Gold was 1.8 - 1.9 million oz.
Drilling on Copper Belle in 2018 was 370 X 250 meters which adds another ~18% or about 700k oz. Au to my estimate through 2018. So I think we may be at about 2.5 million now. I'm optimistic about the next drilling season because the gold grades to the northeast are the highest results at Copper Belle so far. I'm hopeful to eventually see a Copper Belle Inferred resource close to the Iron Cap Probable resource of 3.5 million oz. Au.
Many recent interviews and press releases have noted that Copper Belle/Treaty Creek is much easier and less expensive to develop than KSM. Some folks have been negative on Treaty Creek due to the large volume of material to be processed at about 1 g/t and that much of the gold is deeper. But I would like to point out that KSM gold is just as deep and dispersed, so if that becomes a viable project, it would be very natural to incorporate Treaty Creek into KSM, especially since the Copper Belle gold is right along the MTT tunnel route. Treaty could be a good proof-of-concept or first phase of KSM to prove out the overall project economics. Treaty ore volume would then go first through the system and not overload the other portions of the project. Treaty gold could generate some cash while the project extends to Iron Cap and Mitchell, potentially offsetting some of the need to borrow money, sell output, or issue stock. If it turns out that Orpiment adds to the Treaty Creek gold total, this case becomes even stronger.
Finally, we should mention that Iron Cap's Inferred resource has ballooned to 20 million oz. Au, not counting some pending additions for 2018 drilling. This is another reason to be optimistic about the longer term prospects for the various showings within Treaty Creek along the MTT tunnel route.
I am valuing Teuton's share of Copper Belle "gold in the ground" at $.15 per share per million oz. based on Cipher Research data showing $31 per oz. for Canadian gold in the ground that is not actively being developed. This is based on 40 million Teuton shares fully diluted, and 20% of total gold value assuming Teuton's 20% stake in Treaty Creek does not change.
Please perform your own due diligence on these exploration gold companies. Doug
P.S. Looks like my opportunity to get TEUTF at 9 cents U. S. may be gone for a while. I was able to increase my stake by 25% last week at that price, but maybe I should have loaded up the truck.