a few points on the NR.... While I have not had time to really dig into this release (hopefully in the next couple of days) on its face it is good news, but not for the reasons many I think were looking for / expecting. Many were hoping for very high grades and very thick widths, and I admit I was of course one of them. However, I have to remind myself of the big picture here, and the reason I am long on this stock and company.
While it is true that the grade of
0.42 g/t gold over 236.67
metres), is not top shelf, it does demonstrate (again) that were dealing with massive widths of gold bearing zones. This is the 3rd or 4th low grade intersection in the hundreds of meters. These drills are the size of your wrist, and 100 meters apart, yet they are still hitting hundreds of meters of gold.
What is important here are the following points in my opinion: - "Drill results extend the Cayenne zone to a depth of 700 metres, the Tabasco zone an additional 150 metres to the east and all known zones an additional 80 metres to the west-northwest. Furthermore, strong, visible gold-bearing mineralization was discovered in a previously untested portion of Area 51, over 300 metres from the nearest drill hole."
This deposit is getting bigger every news release. It is getting deeper every news release. It is expanding in multiple directions, to the southwest, to the west, and now to the east as well. And it is getting deeper. It is important to remember that these drills are roughly 100 m apart. This is still very early in the game to be expecting every drill 100 m from the last to hit the paydirt. That will happen when they start doing infill drilling and tightening up the distances shorter and shorter. That is when we are going to really start finding the where the high grade shoots are.
- ""With over 42,000 m drilled so far in 2019, we are on track to complete 70,000-80,000 metres by the end of the year allowing us to do an initial assessment of the size potential of the gold system and develop a robust strategy for our 2020 exploration program, which should exceed 100,000 metres of drilling"
The truth is to do a proper job of this, they must first determine the overall size/dimensions of the gold system. Then, and only then, can you start drilling for the real tightly spread drills to find out what is in between your 100 meter step outs. While it may be a little disapointing that they didnt hit thick high grade, that is not what is important in this release. This just keeps getting bigger. That is what is important here.
They are planning another 100,000 meters for 2020. That tells us they are going to treat this like a pin cusion and drill the heck out of it, and find every proveable or inferred oz for the RE. And that is where the big money is going to come from, not a flashy headline of a thick rich vein.
Some were also put off that the RE was pushed back, but again, not really what is important here. Well, actually it kind of is, but more so the REASON it has been pushed back, which is of course, the fact that this thing keeps growing and getting bigger, and therefore will need more drilling to do a proper RE.
Given the amount of dirlls they are sinking, and will continue to sink, it is only a matter of time until we get some nice splashy headlines about thick and rich veins, and I am all for that for sure, but in the meantime, I am happy to see this beast grow and grow and grow.
- ""Our permitting process is progressing towards receiving approvals for the start-up of small-scale, 400-500 tpd production from the already-developed areas of the Main Gabbro zones by the second half of 2020 while the continued success of our exploration drill program will support a maiden resource estimate for the combined Fenelon gold system in early 2021."
I love that they are already on the permitting process to start production. They are not screwing around here. Second bulk sample permit already submitted and waiting, moving ahead with 500 tpd production, and adding drills to increase overall time needed to prove this up. THey are moving in all the right directions (at the same time!)
They have 78 holes awaiting assay, and this prese release only dealt with 6. They state that:
"The Company is making all possible efforts to accelerate the sampling and assaying process and has been working with the laboratory to implement several measures to ensure a faster turn-around time of assay results."
with 78 drills coming down the pipe, 6 drills spinning non stop, (and them working with the lab to speed things up) the slew of data and information that is going to come from them in the next 6 months will be nothing less than mind boggling.
It also does not take a geologist or expert to see from the diagrams that they are very clearly tracing the sorce of this gold to the southwest........should they find that mother lode source in there massive drill program, then look out. Then everyone will get the huge flashy headline they want that will blow this up like a hot air balloon.
To all longs I wish patience, good luck and good fortune ! :)
- Jefe