Large Gold Resource - Disappointing Strip RatioI read through the recent new release:
1) Happy to see that the resource hase grown substantially by 44%
2) Misleading to say 78,000 meters of drilling found 76 ounces per meter. I believe the moss deposit had 2.5 million ounces at acquisition. They spent 34 miilion to drill (acquired the resource for 25 million).
All the underground mine resources are uneconomic. Hence they have a 5.18 million ounce inferred open pit resource. of which 2,680,000 ounces was drilled up with 78,000 meters of drillingwhich means finding costs were $12.70/ounce
3) The real kicker for me is the strip ratio of 5.2 : 1.0. Rainy river which is a similar deposit and had a lot of overburden just like moss has a strip ratio of 2.3 : 1.0 strip ratio. Both deposit have a similar overall grade of around 1.0 gpt.
I look forward to seeing what the economics of the Moss/Gast Gold stream deposit is. The deposit certainly has grown but is it economic?