Providence Gold Mines Inc V.PHD

Accuracy of a bulk sample - is actually the point

[2021Gamble]

Yes...that is the whole point of the math exercise I completed and shared yesterday with the BB

Aggregate all the samples together using the assay results.

The total samples of 258 (149 from drilling and 109 from trenching) aggregate to a bulk sample of 498.06 kg

That bulk sample assays at 3.694 g/t (details posted yesterday).  this is the correct math for those 258 samples whether you like it or not.

That bulk sample is 0.0135% of the approximate first stockpile size (my estimate 36,900 t or 36,900,000 kg at a ton being 1000kg approx.). At 0.014%, this aggregate bulk sample is still very small, and I concur with the company on the add of the word "anticipated" as 0.014% is not large enough to be representative.

The company clearly identified that the bulk sample they performed was from the previously completed sampling, and was an aggregate of samples (ie. They did not pull up a 5, 10, 20, or 40 ton truck and take a massively large bulk sample - as this type of bulk sample is very expensive to process in a controlled fashion)

As for 'the nugget effect".  The stockpile is previously milled material, and by the assay information provided is "course to very course", and yes, also would include 'nugget effect' throughout the pile....

So, yes there are large g/t values included in my calculations.  8 samples of the 258 grade over 10 g/t.  these 8 results equal 2.6% by weight and 3.1% by number of samples (8/258).

The % weight is low (2.6% versus 3.1%) as one of those 8 was a mere 0.51kg grading 18.7 g/t.  At 0.51 kg it is significantly smaller than both the mean and median and thus dropped the % by a small amount.

Conclusions

I used all of the assay results provided by the company for both trenching and drilling

this aggregation results in a bulk sample of 498.06kg grading 3.394 g/t gold

2.6% of the samples by weight of this 'aggregate bulk sample' grade higher than 10 g/t

At 498.06 kg, this bulk sample is only 0.0135% of the entire estimated size of the first stockpile, and is IMO, not large enough to be 'representative', but would be correct as 'anticipated'.

I have included the 'outliers', or 'nugget effect' samples, as I believe in aggregate, the stockpile includes nugget effect sporadically throughout - as it is previously milled material from a mine, and with the by weight and by number of samples being at 2.6%-3.1% of the stockpile, I believe that is reasonable nugget effect for previously milled material.

The original stamp mill likely would have had a recovery rate of 60% from the raw ore a century ago, leaving the remainder unrecovered in the stockpile.  It would also likely have included milled material from waste, or near waste rock - which is the primary reason we also see low values in assays as well.

The original mine was reportedly producing over an ounce of gold per ton.  At 40% unrecovered.

If the mine was producing 34 g/t - or 1.1 o/t @ 40% unrecovered = 0.44oz unrecovered = 13.6g/t gold remaining in the previously milled ore.

You will note that the above 'matches' the company information for the 'anticipated' high grade - thus validating that there is previously milled material in the stockpile.

Hope this helps folks - I know it did for me - especially as I was able to validate the 13.78 g/t and 1.47 g/t recovery rates provided by the company and provided through news release on 'anticipated' values.

It's Friday - enjoy your day and weekend

[2021Gamble]

Typo...sorry 3.394 is the correct value

[givemeabreak1]

Gamble you are making up your own definition of "Grade as aniticipated".  It is being used as a promotional filler word unless your willing to say what that aniticpated grade is!  Simple question simple answer but the all the company has to do is say what that anticipated grade is! Now as far as the drilling here is the important number you have to think about which you keep

[KozmoD]

This post has been removed in accordance with Community Policy

[KozmoT]

Its like getting stopped for doing 150 km/hr in a 30 km/hr zone and telling the officer, "But I was only driving for 10 minutes."  When all your assays are between 0.1 g/t and 1.0 g/t and suddenly you get one thats 100 g/t it should be obvious to most people that the problem is the assay or a nugget and you either re-assay the sample (which they did NOT) or you chuck it.  You

[Avocadopit]

I asked Ron if he had ever brought a mine into production. He has not. Which would explain why he is dragging his feet on processing the almost mill ready stockpile material. All he needs to do is find a 50 or 100 TDP portable processing plant, lease or buy, and start making money for the company, rather than endless stock offerings at rock bottom prices to play with the property. We already know

[2021Gamble]

Thanks Avocadopit for joining the discussion Very much appreciated

[KozmoT]

With all due respect avocado, there is a very good reason the waste pile has been esssentially abandoned.  You have to ask yourself is it because a) the pile is economically viable in terms of grade but management is too stupid or inept to get on it, or  b) your numbers and Gamble's are way off the mark and the grade and recoveries actually do suck so bad it is just not

[KozmoD]

This post has been removed in accordance with Community Policy

[KozmoD]

This post has been removed in accordance with Community Policy

[Avocadopit]

I think the problem is a a) the pile is economically viable in terms of grade but management is too stupid or inept to get on it Every time I ask Ron about it he comes up with an excuse not to do anything, yet he was able to do the percussion drilling, play with a fancy toy on the side of the mountain, and do all sorts of other operations on the property other than processing the stockpile. He

[KozmoT]

Gotta admit I agree the fire risk excuse was pretty funny considering all the other stuff they were quite willing to do.  Here's food for thought, maybe he just didn't want to come out and disclose the waste pile was clearly NOT economically viable.  Its obvious some investors still believe there was a chance to make coin on processing the tailings there, despite all the pathetic

[Avocadopit]

Yes. Been a bookseller of used and rare books for 35 years, selling online for the last 30. Have an open shop that doesn't do much, so online sales it is. The pandemic has been a godsend, and the worse it gets the better for online sales.  Based on everything I've read about this mine, and all the historic researh I've done, the stockpile definitely does contain economically

[RightAngle45]

Also tried talking with him and its just so frustrating. It seems like he is just going around in circles waiting for a miracle to happen. In my opinion the best thing that could happen , is a buy out. I am in at about 16 cents on this pooch.  What a dumb investment.  Thats what happens when you dont do your home work

[givemeabreak1]

RightAngle A buyout of what?  They do not own anything!   They have the rights to 50% if they meet the drilling and exploration covenants.  If I recall correctly they have been short and paying penalties in lieu of.  After that they need to pay 5 million for the rest lol.  I am not sure who is going to pay 5 million or want to buy out 50% of what amounts to nothing so

[KozmoD]

This post has been removed in accordance with Community Policy

[givemeabreak1]

Baby KozmoD you da man!  Riddle me this how can you be sureAngle did not send an e-mail unless you happen to be the person the email is addressed to lol.  

[KozmoD]

This post has been removed in accordance with Community Policy