10M + GEO'sLong weekend read comes early. I have been asked in DM’s what I think it will sell for. I even got some grief from someone for not defending the $30/ share number when discussions were going on about the Property of Merit mine potential numbers that were being calculated; so I thought I would repost some information I have posted before and some very new info on an old piece of info.
First a lesson in GEO’s. Putting gold and other mined material on equal footing, gold equivalent ounce is a key term used in the mining industry.
Equivalent ounce is an investing term used throughout the mining industry. For example, miners that primarily focus on gold might use gold equivalent ounce (GEO) and copper miners would likely focus on copper equivalent ounces. All of the variations on the term equivalent ounce are meant to do the same thing, create an equal footing across a miner's portfolio so investors can more easily evaluate production or reserves. The definition was new to me and appologies to the geologists on the board for thinking anyone else didn't know this..
Based on a “low result” Au/t wise from part of Hole LME20-030: 18.50 m of only 0.18g/t Au, 14.64g/t Ag, 0.21% Cu and 3.69% Zn converted to GEO’s/t is the equivalence of 1.86 g/t which is over 3 times the open pit cut-off for most mines.
We’ve all (“all” being those that actually did any DD) seen the 2011 Potential Target BOE 10M GEO estimate. (That’s the very old info)
In early 2018, LAURION designed an exploration program over a 3 to 5 year period with the prime objective of defining a significant near-surface bulk metal polymetallic system in the order of 10 million gold equivalent ounces that could potentially be mined in one or more open pits (the “Potential”). It was believed at the time there was sufficient evidence from the historical and LAURION’s work for this potential to exist in a 3km by 1km are containing all of the known precious and base metals mineralization known to date (the “Target Area”) (more old info)
When this estimate was done they also stated that they calculated value of each ore bearing tonne and came up with a total of $252.47 US/tonne based on the 40-50 million ore bearing tonnes grading on average 2.5 g/t Gold, 0.5% Copper, 3% Zinc and 30 g/t Silver in 2018. Old news but I don’t think anyone really comprehended that they were not saying there are 10 M ounces of gold but enough gold plus the extra “By-product” Minerals to be worth 10M oz of gold or Gold Equivalent Ounces. My takeaway from this is the actual value of the gold portion per tonne is only about 60% of the GEO (56% with the above numbers at today’s commodity prices); so when Ahsineeg calculated the “potential” gold according to Table 25-1 of the Property of Merit the result was at least 40% low.
The original estimate was also focused on just the A-Zone 1km X 3km or 3 sq. km
I think they are drilling to prove the target zone, expand it systematically and prove more and more GEO’s as they go. At some point, 3-4 million oz., it becomes a feasible mine and will attract a new level of attention and I think we got there over a year ago. “The 2021 assay results, combined with new geological understanding, confirms the presence of volcanogenic mineralization (A-Zone type) over the whole strike length between the McLeod Zone and A-Zone.” Next news release – “Extends the A-Zone to 700m Towards the Southwest.” They just keep expanding the area and proving MORE GEO’s. When I said the results were at least 40% low I am referring to the fact that the table only includes some of the zones. It doesn’t include, as far as I can tell, zones we will remember from all the drilling assay results like, the McLeod, Marge, Jack, Loki and Niish Zones. I also feel they used the most conservative numbers in the table and left out some amazing numbers from the Niish where they drilled 48.69 g/t Au; 35.98 g/t Ag; 1.14% Cu over 5.4 m that included 441 g/t Au & 191 g/t Ag over 0.57 m. If this is converted to GEO’s / tonne it is the equivalent of 50.46 g/t. The Joe zone they list as 0.6-1.14 tonne at 2.5-3.2 yet Hole LME20-025 intercepted 10.98 g/t gold over 14.25 m. They are being conservative in my opinion.
From the Laurion History and Highlights, “the 2021 drill program, a program of stripping was also completed, a program of stripping and trenching, exposing 4 new mineralized areas of interest: the A-Zone, Niish, Garvey Zone and a new zone, “the Pond”, located near the McLeod prospect, 1.4 km to the southwest of the A-Zone”. More about the Pond “This new mineralized area hosts gold, silver, copper, lead and zinc over a strike length of 130m and a width up to 2.7m.”
Or “the Joe and Niish Zone LME20-030 was drilled to test and follow up on an historical drill hole (88-33), LME20-030: 18.50 m of 0.18g/t Au, 14.64g/t Ag, 0.21% Cu and 3.69% Zn from 141.50 -160.00 m, and LME20-031: 70.65 m of 3.90 g/t Au, 6.46 g/t Ag, 0.25 % Cu, 0.40 % Zn from 325- 423.25m. Niish Zone, which remains open along strike and at depth, and build on the 2020 high-grade discovery interval within the total intercept which assayed 48.69 g/t Au, 35.98 g/t Ag, 1.14 % Cu over 5.40 m, including 441 g/t Au, 191 g/t Ag over 0.57 m in drill hole LME20-031 These results when released in Jan 2021 resulted in a stock halt as the expansion of the strike expanded 500 metres NE of the A Zone.
Add on the releases after the Property of Merit report that “Confirms the Extension of the Sturgeon River Mine Mineralization by 600 Metres to the Northeast With Grade Intercepts as High as 29.45 g/t Au Over 3.5 Metres, Including 186.00 g/t Au Over 0.55 Metres” and “Confirms the Extension of the Sturgeon River Mine Mineralization by 320 Metres to the Southeast with Grade Intercepts as High as 3.088 g/t Au Over 7.5 Metres, Including 36.0 g/t Au Over 0.5 Metres and Including 9.0 g/t Au Over 0.65 Metres” to result in the news release “2023 Drilling Campaign Successfully Defines the Sturgeon River Mineralized System Over A Strike Length of 1,600m And To Depth Of 600m.
And these latest extensions may or may not be included in the 2.5 km x 6 km strike zone as reported at the AGM last year. Even if it does include this latest extension of almost 1 km (600 m + 320m) the 2.5 x 6 km is now 15 sq km or 5 times the size of the original A-Zone Target Area. So even if the GEO’s per tonne are cut in half they are still multiplied by 5.
I have not read anywhere that drill results have disappointed but instead they have found mineralization in EVERY hole including the ones between the major veins (McLeod / A- Zone and CRK Zone)
Great paragraph from the 2022 drill results. “The majority of the stacked vein systems on the Ishkoday occur from surface to a 300 m vertical depth, indicating that the potential volume of the stacked vein system was increased in 2022 drilling across the A-Zone and McLeod zone, by a minimum of 120% or a maximum of 230%. This volume does not represent a mineral resource, but gives an estimation of the volume where the stacked vein systems were intercepted.” Does this sound like they are saying there’s 120-230% more than the 10M GEO’s??
So, to those who have done NO reading or due diligence of any kind, It will not sell for $2-3 and to hope it does is moronic. Those of us who will Mess our pants have been in this since it was 9-14 cents so that would still be 2-300 times our original investment but we know it's worth farfar more and we are wise enough to see the lunacy of such a statement.