RE:RE:Prospects Appear Promising A proof read and cleaned up version of my last post:
And low and behold .. We have it! And I would echo oil's sentiments, in a timely fashion.
There is a lot of meat on the bone in this presser .. No longer requiring freezing to mine should save a ton of time and money for the operator. This and with a strong gold price (And weak CDN dollar) should be motivating the JV partner and Omineca to get moving Paleo-Channel dirt and finally get cash flow for the company and shareholders moving along.
Ok, so now some back of the napkin calculations .. These are just guesses and in no way saying that this is what will happen or if my numbers are correct .. but just for the sake of discussion (Please chime in if there is a bust in my numbers)
The 2012 crosscut produced 173 oz of .90 fine gold from a 23 metre crosscut across the channel. From this they got 140 bank cubic metres. Please check my math here, but 23 metres divided into 143 cubic metres is 6 cubic metres. And so the adit would be 3 metres wide by 2 metres tall, or one metre wide by 6 metres tall, or some other permutation.
According to the press release they have permits from the government for mining 300 metres of the channel ( I assume linear metres along the defined course of the channel).
If the 2012 adit was conservatively 3 metres wide and 2 metres tall, this larger bulk test of 300 linear metres along the channel would accumulate 100 X the gold recovered in the (assumed) 3 metre wide and 2 metre tall adit of 2012.
173 oz X 100 = 17,300 oz of .90 fine gold. OMM gets half, less a fixed $850 mining fee and so at $2,650 oz CDN, OMM,s take is $2650 - $850 = $1800/oz, X 1/2 (OMM has now a 50% interest) = $15,570,000.00 net to OMM.
$15,570,000.00 net to OMM .. for the first 300 metres of paleo-channel. I believe they have also said in previous press releases and/or presentations that the paleo-channel has been historically defined to be at least 2.5 km in length. So they can do this, (3 metres wide by 2 metres tall) 8 times on the historically defined 2.5 km paleo-channel. That's $110,000,000.00 net to OMM. I have a fuzzy recallection that they also said that the paleo-channel may be 12 km in length and if so, and all the grades remained the same (and that's a big "if") you could take that number and multiply by five. That's a lot of gold.
The Fraser River conglomerate was all news to me, but also very interesting. The hard rock exploration is also compelling as looking at the company's online presentation this may be an analog to the Barkerville hard rock deposit and maybe better, or not.
All and all, very interesting. Things should be drying up out there now so time to get rambling! Let's make some gold gentlemen!!
All the best to longs,
Doc.