Summary Update of Murchison Status as Reported These are bullets extracted from Q2 Report
1.......The organization of the geology data on the server was further improved during the quarter. In addition, new data rooms were generated for each of the projects.
This will greatly improve efficiencies which will be especially important as Monument further advances preparation for extensive exploration programs and possible mine start up.
2......A grab sampling program was completed on a historical mining dump at Tumblegum Deposit.
The grab samples returned an average grade of 1.79 g/t Au from ALS and comparative results from MinAnalytical, Canning Vale returned 1.77g/ Au via the Chrysos PhotonAssay technique. The material could form early low cost ore feed in a mine start up.
3.....The revised life of mine model with economic assessment at the current market was completed by the technical team.
In preparation for updated LOM planning, available data for all resources that are included in the current LOM plan were reviewed in detail for risk assessment.
4..The Murchison Project resource risk matrix was generated providing a high-level risk overview and mitigation framework and opportunities associated with each deposit.
The work was submitted to SRK consultant for review in December 2020 and shall be completed in March 2021 with a gap analysis to assist management in making production decisions.
5..Burnakura ;The data for the Alliance deposit was reviewed in detail in preparation for SRK to review the resource for possible underground extraction, which was also completed during the quarter.
6.. The current July 2018 SRK resource estimate is only based on parameters for an open pit mining scenario.
The mineralized intersections from all Alliance core photos were reviewed to obtain an improved understanding of the actual true width of mineralization.
Some of the best intersections include 1m at 53.76g/t Au from drill hole ARD005 and 2m at 29g/t Au from drill hole 14MRC013. The results of the resource review were incorporated into an updated LOM plan subsequent to the quarter
.7.....There are at least six deposits from Burnakura that are included in the current LOM plan and five of these contain resources that have been classified as Indicated or Inferred Resources under NI43-101 standards.
Some of the main tasks will include updating existing mineralization wireframes and corresponding block models for evaluation of potential underground mining at NOA 7/8.
8.....Gabanintha:A preliminary drill plan and corresponding budget was completed for inclusion in the LOM plan. The drill plan is aimed at targeting mineralization directly around optimized pit shells, validating historical drilling as well as providing some material for initial metallurgical test work.
The drill plan and budget will be refined in 2021.
9...The Company continues to ensure that the plant and other facilities are operationally ready through its care and maintenance program to ensure efficient commissioning in the future.
Site accommodations and catering are fully functional in readiness for the Company’s personnel and mining contractors to commence on site.
So, it looks like they have been doing their homework for getting Murchison ready for Drilling and early mining which now seems to be concentrated on the Tumblegum tailings as a cheap source of start up ore, folllowed by underground mining at NOA 7/8 and Possibly at Alliance pits where an U/G portal already exists.
As such, Burnakura will receive first priority for drilling necessary for final LOM planning including re-estimating gold resources for U/G mining.
It should be noted that the 3 southern pits were not included in the 2018 resource estimates. Subsequent drilling indicated excellent intersections.
Obvious from all of this is that we are going to see a substantial increase in gold resources for Murchison, as the underground lodes of the 6 pits are drilled and deepened, along with the addition of shallow oxides discovered by drilling since 2018 along with any drilling of the southern 3 pits of Burnakura.
In particular, NOA 7/8 drilling since 2018 has increased u/g depth by over 150 meters and extended the northward extension by about 400 m.
Both depth and northward extension remain open at strike and depth.
We shall see if my rule of thumb of 3 ounces of basement gold for every ounce of topside open pit gold holds true.
If it does, we will have in excess of 2 million ounces of economic gold available for mining when all these 13 pits are fully explored..