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Newcastle Minerals Ltd A.NCM


Primary Symbol: V.NCM



TSXV:NCM - Post by User

Comment by miningmanon Feb 21, 2020 12:08pm
135 Views
Post# 30718127

RE:RE:Q4 report

RE:RE:Q4 reportPaths ,  I agree  1000%   that new proven reserves  will require a seious  amount  of  drilling.  The  numbers you  quote  from Q3  report  compute to  an  average  hole length  of  only 60 metres.  To me , this implies that  by  far  the majority  of the 2019  drilling  was stope definition   drilling. As such ,  probable  and  inferred tonnages  will have been  moved into  the proven  category.   AS  such there will have been  minimal  increase  in  total  ounces....... indeed    as  milled tonnages  have failed to  confirm  the initial  grade estimates,  an  argument can  be made that  total  ounces will have dropped.  Also ,  given the oft  stated  shortages  of   available  stope inventory,  surely  all the tonnages and ounces  delineated by this  90,000  metres is already  thru the mill???  i.e.   minimal  contribution  to  restated reserves.

It   seems to me that  this  30,000   metres of  drilling  per quarter  will be  necessary  every  quarter going  forward  for  denition  purposes.  In addition  to this an  unknown amount of  exploration  drilling  will be vital  to  replace the ounces   mined  in  2018 /19.   since  these holes will be typically   200-400  metres long,   lets  assume  another 30,000   metres per quarter  is  necessary.

At   around $100  per metre ,  thats an  additional  $3  million   for exploration.   Im sure  Tom  Yip is  laughing  and giggling re the  strength  in POG,  but  there seems to be  additional  impending  costs  onn the horizon for  2020.
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