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Bullboard - Stock Discussion Forum Alpha Minerals Inc ESOFD

GREY:ESOFD - Post Discussion

Alpha Minerals Inc > Let's talk about stripping...
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Post by Tinmann on Nov 28, 2012 11:02am

Let's talk about stripping...

Not that kind of stripping, but pre-stripping... 

 

HAT's deposit was mostly between 250-300m deep, AMW's holes are hitting mineralization at around 60-70m deep. Now, I did some reading of the HAT preliminary economic assessment to get a feel for how significant the shallowness of this Patterson Lake mineralization is, and here's what I found.

 

The HAT PEA showed average pit wall slopes of 39 degrees. If you look at a cone with that angle as the "wall", you can figure out how much rock needs to be moved to get to a deposit at any given depth. I'm not saying HAT will end up being an open pit, BUT that's what their PEA was run as. Feel free to look it up, I'm not making this up.

 

Anyways, apples to apples, if AMW runs to 100m deep versus HAT's 250m, that means that a pit at AMW/FIS Patterson Lake would need to move LESS THAN 10% of the rock than what you'd need to move at Roughrider. 

 

Think about what that means in terms of the economics here. It's not going to take much to make an economic deposit.  I'll say it again, if our holes come back with anything close to what the initial HAT holes came back with, this is going to be wild. We have literally kilometers of prospective strike along the conductor corridor.

 

People are slow to realize how important depth is in this equation. Shallow is good, but shallow and high grade? That's what you want.

Comment by woozlecat on Nov 28, 2012 11:23am
great info Tinmann...much appreciated...  keep up the flow of information...
Comment by leverage1971 on Nov 28, 2012 1:05pm
Hears to that thanks again Tinmann have learned alot about "condensate" and gas from your posts over on Donnycreek Board... missed out on HAT glad I didn't miss out on D#CK and now AMW... keep it coming stock at 1.99 now :) Lev
Comment by Chattyc on Nov 28, 2012 2:05pm
Well, the market seems to like AMW a lot judging from the share price today. Tinmann that scenario you presented is 90% less than HAT would have to remove in oveburden to strip the rock sand etc to get to the orebody. That is some difference for sure. Whatever AMW grades are they only need be about 1/3 of HATs grade and about 1/3 the size to equal the same dollar value in a fair world I think ...more  
Comment by boyon on Nov 29, 2012 11:07am
If there is size here as well then it will be easier and quicker to get to the mining stage. That will increase the NPV of the project. This is very significant. Regards
Comment by Tinmann on Nov 29, 2012 12:23pm
That's exactly right, and is something that buyers understand.  The alteration they are seeing is widespread and pervasive... they are also seeing massive and visible pitchblende throughout the mineralized intervals. These are all suggestive of a large long-lived hydrothermal system, which is what you want to see.   The geophysics is another piece of the puzzle... there is a very ...more  
Comment by Chattyc on Nov 29, 2012 12:53pm
Now that's a quality post Tinmann just threw up on this board. Lots of info, worth its weight for sure. I remember HAT with their discovery hole and how the stock reacted, up over $4.00 lots of exuberance and excitement around the discovery hole. AMW should also provide the same enthusiasm as many look for the next exciting play. With the gold market in the doldrums (gold stocks) a rich ...more  
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