RE:RE:Quarterly Report by ODYWayne
The drilling success is very good, showing excellent calibration with the expectations of the new geologic model.
In general , oxides may go as deep as 75-100 meters, below which the lodes become source rock which is sulphides.
As a general rule, underground grades need to be twice that of open pit , if sulphide rock mining is to be economic within normal gold prices.
A quick perusal of ODY grades shows the usual progression to much higher grades below those of the open pits, so they look to be economic.
To have confirmed high grade lodes down to 280 m at the early stage shows just how confident ODY management are in their drill hole selections .
Nearby, WestGold is mining below 700 m at Big Bell, and confident that they will find gold down to 1400 m.
Check their underground grades versus open pit and you will see that ODY is having good success in finding these higher grades at depth .
If you check NOA 7/8 at Burnakura, you will see a similar grade progression in the dipping u/g lodes which average grades of about 4.5 gms per ton .
In almost every case, open pit gold deposits are sourced from their basement lodes of sulphide rock.
Thats what makes drilling below open pits so exciting .
You know the gold is there and probably of higher grade but only drilling will tell its economics.
Murchison has 24 open pit mines and the new geologic model has identified a further 60 new shallow targets...