RE:Goldstorm drill locationsbovalena wrote: I would love to see a map of the current drill locations for the six rigs on the northeast extention. I am having a hard time understanding the significance of hole 113 as it was drilled on top of an old drill site but at a different angle and it seems slightly to the northeast. Zorg, you seem to feel this is a very significant "discovery" and an extention of the 300 horizon. It must have been almost earth shaking for KK to alter his plans in such a way.
Hi bovalena - For me, the significance of hole GS-21-113 was twofold. Prior to this result, I don't see anything from any drill holes that were started northeast of 115+50 that showed results. There were a couple of lost holes last year at GS-20-99 and 101.
GS-21-113 was started at 116+50 and parallels the paths of previous holes begun at 115+50 and even down to 114+00 (the rogue hole GS-20-67 that hit mineralization in the last 15 meters). So that is a stepout of about 100 meters. But the big news is that the gradeXwidth is much better than the holes started at 115+50 such as GS-20-70, 81 and 88. The best of the previous holes was GS-20-88 which showed 300H gradeXwidth = 253 going down to 681 meters. By comparison, GS-21-113 shows a gold grade of 1.301 g/t Au from 255 - 711 meters (456m) for a much bigger 593 gradeXwidth. That's 2.3x
The maps from press releases last year show this much more clearly than the maps attached to the most recent press releases from this year.
When I plug these results into my model, I can see as much as 2.8 million oz. Au being added to the 300H open pit IF they can perform enough verification drilling this year to confirm that this higher grade is consistent along the 116+50 line. That would require two more consistent holes. So I can see open pit gold going from 12.7 million to about 14.5 million oz. Au and then add the ounces converted from Inferred to M&I (I expect 2.5 million to be added to the pit constrained gold resource M&I). That potentially puts us at about 17 million oz. Au M&I in the open pit, up from 12.70 last year. I equate that to an increase in stock valuation of 34%.
When I plug in results to the overall Goldstorm data, it moves from the initial estimate of 27.3 million to 31.4 million oz. AuEq in all categories.
The company has reported results for only 13047 meters of drilling so far. If they can hit 30,000 meters this year they are only at 43% reported, and they have apparently honed in on another honey pot to the northeast for the remainder of the drilling this year. I don't expect there to be any clear indications that any of the boundaries of Goldstorm will be known this year unless they find the edge to the northeast.
Do your own DD. GLTA. Doug