Canaccord Note18 Jun 2021 08:51
Canaccord have worked out that the drilling for the initial MRE (just the MRE sections so not including the breccias or the NW sulphide zones) has yielded 6.5 koz of AuEq per metre.
Overall drilling so far has yielded 6.5 koz per vertical metre, which we would expect
to increase as mineral zone targets which are lateral to the existing inferred resource
base are defined. This would seem a reasonable assumption to us, based upon the
very strong grades and continuity seen in the infill drilling programme so far this
calendar year, suggesting high probability of further lateral mineral resource
definition.
Then a little further down they have extrapolated this into the full 1,300 metres where mineralisation has been discovered,
Furthermore, the initial Mineral Resource Estimate shell is currently confined to only
halfway down the ~1,300m vertical depth of the known mineralisation (which remains
open), and recent growth drilling results suggest strong continuation of the grade
profile at depth.
We also note that even without assuming any improvement in the vertical oz/m profile
of the orebody, applying the 6.5koz/m vertical resource rate to the full known 1300m
of mineralisation would yield total gold resource of ~9Moz. Obviously an assumption
of even a modest increase in this rate (as further lateral targets are identified) could
potentially see the figure expand quickly.
So we are looking at roughly 9Moz of AuEq assuming there is no increase in grade (looks unlikely) and no lateral increase in size (again looks unlikely) and there is no further extensions below the 1,300m of mineralisation (again looking very unlikely).
This is just the MRE areas (SE Crescent and a limited section of the Northern breccia) and the adjacent breccia zones - We are not even contemplating any of the majority of the Northern breccia, the North West sulphide zone, the Eastern breccia and the deeper section of the SE sulphide zone.
Man - this is an open goal, sit on hands, be patient and this will come good eventually.
ATB - Paddy
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