Providence Gold Mines Inc V.PHD

Geologist Question!

[givemeabreak1]

So I have been reading drill results and technical reports for years and I came upon something I am not sure I understand.  So when I do my resource calculation I always us true-width or if that is not available I use estimated true width number though I discount the number.  So there are times when companies do not know the true width or even estimate the true width.  Almost impossible in these cases to do a calculation other than flip a coin.

So I have a case where this company has about 40 drill holes most with out any width information.  All they said was we have not done enough drilling to estimate the true width of these holes.  They then proceed to put out a 43-101 resource calculation of almost 1.5 million ounces.  

No reading their technical report it says the following:  It gives no other explanation in this area of the report.  As I recall,  Best Practices Guide for these reports states that You have to go on and clearly state the nature of the irregularity or variability.  It has always been my understanding if you cannot give a true thickness it lends itself to a significant favorable bias when doing a calculation.  At any-rate I if I do not know the thickness of the find I stay away from the play.  So the question is how do you do a reliable 43-101 without knowing where the drill is cutting through the stike zone?

[givemeabreak1]

Sorry I cut and pasted the section from the technical report but it disappeared when I posted it!

[KozmoT]

The short answer is ... no you can't do any kind of resource calculation without knowing the true width. But having said that, true width is pretty easy to figure out the more drillholes you have, as long as they are not too far apart.

[givemeabreak1]

Thanks Koz however I am not sure about that  So the 43-101 Resource report says the true width cannot be calculated due to irregular shape of the deposit.  It would seem to me that would require the qualified reporter to make alot additional assumptions allowing for more bias into the report

[givemeabreak1]

Koz if you get a chance look at Sitka Gold.  They drilled like 40 holes used 34 to come up with almost 1.5 million 43-101 resource.  It is now on Sedar.  I have some questions.  Look at their recent news release ie drill results really nice holes but they say they lack the drilling to give a true width.  A week later they announce their 43-101 resource.  It says that