Hole GSCL1221 with 191gpt
One of the 2012 hole located just south of the old Cleary Hill Mine (average grade 1.3 ozpt, or ~40gpt) had a spectacular grade of 191 gpt, but the graade was "cut-off" to 30gpt for conservatism (which is too severe,imo). This hole is about 100m south of the horizontal "projected vein zone" as shown in Slide 13 of the June Corporate Presentation. A discussion on this has been posted on ceo.ca, post here for info (for those interested):
"Hole GSCL1221. This hole has a high grade (stellar) intercept of 191 gpt/1.5m but in the calculation (16 Oct 2012 NR) it was highlighted with an average of 1.46gpt/50.3m (kind of un-sensational) since they used a cut off of 30gpt for that 1.5m. This may be a conservative treatment of the data by the analyst/company, but it does not tell investors the contribution of the high grade to the RE. Let's consider the values of gpt-m: The average value 1.46gpt x 50.3m = 73.43gpt-m, 30gpt x 1.5 = 45gpt-m which accounts for more than half of the average value, and 191gpt x 1.5m = 286gpt-m (much much larger than the average). A simplified calculation using z gpt x 48.8m, where z is the grade used in the rest of the intercept of 50.3m (=48.8m) would yield something like 0.59gpt along with 30gpt/1.5m. In summary, the gold content of the 1.5m intercept at the actual grade of 191gpt would give investors a much better appreciation of the potential RE and PROFIT (high grade would go straight to the profit). The company may put in all sort of cautionary remarks (to protect themselves), but too much conservatism (i.e. using a severe cut-off limit) would not give a potential true picture of the situation. As a reminder hole GSDL2001 has an excellent grade at around 367m downhole as well (169.5m/2.0m). Note: Hole GSCL1221 is about 350m from hole GSDL2002 (in Slide 23 of the June Presentation, look toward the 2008 Pit, top right corner, ~26 degrees from the horizonatal). Feel free to weigh in."