Member Info for AGEOS

Continuation:

Data from the La Pastorera and Aragon gypsum mines (also known as Exman Mines) appears to indicate that the gypsum deposit is a stratiform unit conformable with volcanoclastic rocks of the Cretaceous age Borroso Formation and with sulphide rich zones presumed to be lateral equivalents of the high-grade Au zones. This cumulative evidence and various lithological and mineralogical indicators strongly suggests that the APTA discovery is part of a VMS system ie the product of ‘black-smokers’ in a volcanic ocean-floor setting, a conclusion supported by Snowden Mining Consultants in 2010 and several other published sources. Such a conclusion would be used as a model in guiding further drilling.
On that basis extensions of the high-grade zones could exist in two anticlines (both steep walled folds with N-S aligned crests) within the 250m W of the current discovery and where only one step-out hole, no 4, has been drilled. A N-S aligned dislocation, the El Cuno Fault may have displaced any westward continuation of the high-grade zones to a depth below hole 4 so additional and deeper prospective drilling may be justifiable here.

Further evidence, and it has to be said some rather casual and inexact reporting of such in both RNS and company website sources, indicates that the APTA discovery may show other styles and periods of mineralization superimposed on the VMS phase. However the co website account of this, under operations/anza, in the sections on “Geology” and “Exploration” only confuses the issue. The first paragraph under “Exploration”, in apparent reference to APTA, dismisses VMS style mineralization and concludes the mineralization to be “structurally controlled, with disseminated to semi-massive sulphides, irregular veins, stringers and hydrothermal breccias…..” , a statement which not only contradicts much of the evidence reported so far but for which no supporting field or core-log data is provided in support. The “hydrothermal breccias” are presumably the La Cueva and Maluca pipe-breccias which are respectively 0.5km S and 2km NW of the high-grade Au zones and could have been volcanic feeders to the VMS system, whilst references to veins and stringers appears to relate to the northerly La Cejita tonalite/diorite complex and/or the Charrascala tonalite to the W, both unrelated to the APTA trend. I can only conclude that there may be evidence yet to be revealed which will clarify the company website statements, possibly confirming mesothermal mineralization superimposed on a mafic VMS system at APTA. This would be an important stage in developing a model on which further exploration of the whole ANZA region could then be based. Hopefully all will be revealed in time.

To be continued.

Since posting an Au Estimated Resource for APTA on 13th Oct I’ve taken a closer look at the evidence regarding metallogenesis and also the stratigraphy and structural context of the deposit to understand better the potential for increased resource.

Firstly in assessing the Au resource of the “high-grade zones” at APTA as defined by the map on page 9 of the Sept 2018 Presentation, I accepted the Presentation reference to the host rock being a “highly siliceous breccia”, for which a specific gravity of c2.2 is appropriate and used that metric in calculating tonnage. Reference to the assay samples however confirms an average density of 2.61 g/cm3 which can be assumed to equate to sp.g.
Using that metric the APTA tonnage and Au resource would be 18% higher than that which I estimated.

Secondly, the stratigraphic and structural interpretation of the deposit at APTA as portrayed in the Presentation, which is the most recent and presumably up to date interpretation of the deposit, must be treated as “interpretation in progress”. The dimensions and spatial configuration of the “high-grade zones” is well evidenced by the core-data and therefore underpins the basis of my resource estimations with demonstrable validity. However, more evidence, which can only be gained from infill and step-out core drilling, will be required in order to determine the full extent of the deposit and both the complex structural context and genesis of the mineralization.

Those who understood my Oct 13th post and have gained a 3D mental-image of the APTA deposit from consulting the page 9 map and page 12 cross-section, should be able to envisage the high-grade zones as forming three parallel sheets (locally 4 or 5) each 12m thick on average, inclined at 60 degrees to the E. The strike (metric at 90 degrees to maximum inclination or dip) is approx. N-S and between 300M and 450m in length at surface with an isolated 150m extension of one of the zones further S. Variations on the length of strike will exist with depth ie down-dip.

The western-most zone is depicted in the cross-section (page 12 of Sept Presentation. Note the cross-section in the Feb 20th 2018 RNS is wrongly oriented) through holes 62,43,60, 53 and 70 in the N as confined between 2 parallel faults and as parallel to a deposit of gypsum (calcium-sulphate) itself separated by a fault from the very thin and northern-most extension of the central high-grade zone. These components are shown in the cross-section, within rocks of the Borroso Formation without any indication of stratification or structure.

To be continued.

Although none of the RNS releases relating to ANZA mention airborne geotech surveys I see that the co website under operations/anza refers to “helicopter magnetic and radiometric survey completed, covering c260sq km” (ie total ANZA area); “structural evaluation using radar images over the entire area” and “induced polarization, resistivity, magnetometry and topographic survey of 30 line-km in a central portion of the Anza property”
Newmont will have had access to all the resulting data, if not having initiated and probably funded a significant portion of the survey programme, and will have processed it to their own proprietary standards.

The radiometrics I assume was a multi-spectral (U, Th, K.) survey and would probably have been combined with magnetics which may or may not have included VTEM an electromagnetic system with c300m penetration used to assess conductivity as an indicator of massive sulphide deposits. Interpretation of that would have led to the more targeted ground-based IP and resistivity, and associated magnetometry, which suggests to me an attempt to delineate a possible massive sulphide-rich body or to differentiate between a semi-massive to massive sulphide deposit and a porphyry. The topographic element would most probably have been a DEM/DTM survey used to obtain the digital elevation data necessary for geospatial modelling and drill-hole collar definition. I therefore anticipate announcement of a drilling programme targeting such a prospective deposit probably related to one or more of the igneous plutons in the central ANZA region.

The multi-spectral radiometrics, on the other hand, also assists in locating potassic alteration as an indicator of possible hydrothermal deposits. This may therefore lead to an announcement of prospective drilling elsewhere in the ANZA region.

Expect also priority infill and step-out drilling of the APTA discovery both to further delineate the extent of the deposit and to establish a metallogenic model for guidance in extending exploration of the Pastorera – Aragon trend to N and S. I will enlarge on this another time.
AGEOS.

Those who are justifiably very excited about OMI’s prospects but who have a weak heart might be advised to sit down to a dram of Macallan’s finest.
I thought there was something odd about some of today’s extrapolations from my estimation for the APTA deposit, and then whilst looking at a geology map of the region, the ‘penny dropped’.
ANZA, the area of OMI’s interest, including Guaimarala, Charrascala, Jesuitas ,Apta and La Cejita, occupies c260sq km as confirmed by company survey figures. The area of the APTA high-grade Au zones on which my estimate is based is 0.2sq km including the whole of the surrounding low-grade halo, and 1.08sq km for the total area of the page 9 map of which it is a portion.
Those who were today extrapolating from the APTA prospect to the ANZA potential should therefore have been multiplying by at least 200+ and not by 10. The APTA area is not 10% of ANZA, it is less than 0.5%.
AGEOS

Shelly and others raising the greater potential of ANZA for 5Moz+ as being the prize Newmont have in sight. Agreed but with the proviso’s included in the penultimate paragraph.

MisterP 14.19 post. Your first 5 ‘additions’ are all inherent in my original post.
APTA strike does not extend 1.5km to Charrascala. Structurally impossible. The APTA high-grade zone strike is c20NNE, Charrascala is due W.
Assuming that because 10% of an area produces a 0.5Moz or 1.0Moz reserve, the total area must produce 5.0M or 10Moz may appear logical but geologically it most definitely is not. ANZA has 5 target areas within it precisely because there are 5 sets of geologically distinct characteristics. Two or more may eventually prove to have similar mineralogical potential but that eventuality is way ahead.
See below re 12m.

Professor1 12m is the average true thickness of the Au bearing rocks {breccias} which constitute the 4 high-grade zones as depicted in the Sept Presentation page 9 map. The northern half of the map shows 3 parallel zones outcropping at surface. These are inclined at c60 degrees from the horizontal to the E (see E-W section on page 12 of Presentation} and vary in thickness both along strike and down-dip. They also split, to produce 5 sub-zones in places, 4 in others, but the average thickness remains c12m as compiled from all the zone thicknesses inherent in the core-logs. Hope that clarifies the issue.

Dave85 Thanks for making my day. Somewhat depressed until I read your brilliant exposition. I used to lecture on structural geology many moons ago and would have been proud to have used your illustrative device.
AGEOS

Thanks for the various responses; I will reply in the order they appear.

DegsyA. Yes, in summary, based on all available data, I have estimated the Au resource within the APTA area delimited by the map on page 9 of the Sept Presentation as being somewhere in the region of 0.5Moz Au using the criteria I have outlined. However, as I emphasised in paragraph 2, by reference to the Mariana project, the data and method of estimation is problematic so the figure should be assigned an estimated +/- 25% deviation.
Your use of the term “oz high grade Au” suggests that you might assume there is Au resource other than that of the high-grade areas marked on the map. There isn’t. The intervening areas and the low-grade halo contribute nothing to the potential resource, based on current data.

Egg1000 Agreed. Newmont will have presumably made their own technical assessment of the APTA data and probably concluded strong potential for a significant increase in resource. The geophys and geochem data for the greater ANZA project area, especially the Radiometrics survey, will most likely have been far more persuasive however.

MisterP. There is no evidence that Charrascala and APTA “join up” in the sense of the high-grade zones at APTA being continuous with similar mineralized zones in Charrascala. I would need to detail the structural model to justify this assertion but will spare you that. The June 7th RNS refers to a 3km N-S structure with similar attributes to APTA which may indeed replicate the APTA resource and have a common metallogenesis but the host rocks are different and being c1.5km further W and ‘down-sequence’ cannot be structurally connected.

When mineralization is described as “open” along strike or down-dip (or at depth) it means there is no core-log or equivalent data which demonstrates an absence of mineralization in that direction. It does not imply that economically viable mineralization does occur.

Bhargav, not sure I understand your question but if you mean “what is my minimum Au resource estimation for the APTA area as defined by the page 9 map based on current data” it has to be 0.5Moz Au less 25% (estimated deviation) ie 375,000oz Au.

To be continued

Continuation:

The total of c500,000oz Au based on current available core-log data is in sharp contrast to some of the guesstimates of up to 4Moz ( based, it appears, on a possible misunderstanding of structural and other geological parameters) posted on this BB. However, it is still a highly encouraging figure especially in relation to the limited area to which it relates and the clear potential for additional resource from within that area, both along strike and down-dip.

The recent transformational deal with Newmont will probably give added impetus to the detailed follow up and definition work at APTA, mentioned in the June 7th RNS, with special emphasis on aspects which will elucidate metallogenesis. Any indication of this being part of a VMS (Volcanogenic Massive Sulphide) regime implicating other parts of the wider ANZA prospect will instantly validate Newmont’s interest and elevate OMI’s mkt value substantially. In the meantime BB attempts to extrapolate from the APTA figures to the whole of the ANZA acreage are premature, as with the exception of structurally controlled mineralization along the Aragon Fault and shared geophysical attributes at Charrascala, there is limited geological data available at present on which this can be based.

I appreciate this account will interest very few, hence posting during a weekend. However, hopefully that will give time to clarify any points at issue should such arise.

AGEOS/INTHENO

Continuation:

NB Although there is theoretically a range of such calculations based on two of the components ie thickness and down-dip dimension being continuous variables, this example is the best approximation to fit the core-data from both the legacy and subsequent bore-holes 54 – 071. It is impossible to detail all the calculations here, but having compiled all the High-grade zonal thicknesses for all post 54 holes, the average true thickness for the total strike length of 1140m works out at approximately 12m. The average Au grades within the zones also fall comfortably within the MDA range of 3.2 – 3.7g/t and in significant parts, such as the 100m 694.800 – 694.900 strike-section of the western-most zone, are in the 5.0 – 6.0g/t range. The down-dip dimensions, of 63m and 91.2m in the above example, are a product of the calculations and are the only important metric for which an average cannot be satisfactorily derived from current core-log data.

It therefore seems reasonable to accept the above example as the framework for estimating an indicated Au resource, but with the proviso of being on a per 100m down-dip basis ie.

Volume: 1140m x 12m x 100m = 1.368M m3
Tonnage: 1.368 x 2.2 (sp.g) = 3.0096M tonnes
Au resource: 3.00M x 3.2g/t = 9.6Mg Au = 308,000oz Au
Au resource 3.00M x 3.7g/t = 11.1Mg Au = 357,000oz Au.

Therefore for every 100m of down-dip High-grade zone, continuous along 1140m of strike and with an average 12m true thickness of zone, the indicated resource is between 308,000 – 357,000oz Au.
The E-W composite cross-section on page 12 of the Presentation, which passes through legacy holes 43 and 53, indicates 170m+ of down-dip mineralization between holes 62 and 70 probably extending c100m along strike. Further south, holes 54 and 56 allow an E-W cross-section corresponding to the drill location of legacy hole 33, which together with hole 59 a further 200m south, indicates a down-dip mineralization of at least 125m and potentially 275m for at least part of the strike length. A lot more infill drilling will be required to prove the down-dip dimension of the High-grade zones along the total strike but current data seems to indicate a resource approaching the equivalent of 150m down-dip mineralization ie a ball-park figure of around 500,000oz Au, but clearly with the potential to exceed the 1Moz Au level.

To be continued.

The September 2018 Presentation (see co website for pdf) provides an opportunity for a tentative estimation of an indicated Au resource at the APTA Columbia location based on currently available data, using the map on page 9. This map incorporates the legacy bore-hole locations up to hole 53 and a schematic plan of High-grade Au zones and Low-grade halo.

Using that map as a base, it is possible to add the locations and core-data of holes MAP 54 -62 from the 20.02.2018 RNS and of holes MAP 063 – 071 from the 04.04.2018 RNS. Without complete core-logs it is not possible to replicate the resource estimations I was able to do for the Mariana Resources Hot Maden Au project in Turkey and certainly not to anything remotely near the 5% accuracy (relative to the NI 43-101 figures subsequently released) then achieved. That technique required calculation of metric tonnage and average Au values within defined blocks along strike, within a 3D structural model. Here, a much simpler method can be used to obtain a ‘ball-park’ resource range, as outlined below.

A useful baseline is the estimation produced with the assistance of MDA (Mine Development Associates) of Reno, Nevada (ref RNS 19th Jan 2017) of 1.6M – 2.3M tonnes averaging between 3.2 – 3.7g/t Au based on core data from the 53 legacy holes. This indicated a potential resource of between 165,000oz and 274,000oz Au, with demonstrated metallurgical recoveries of around 96%.
As the host-rock appears to be a highly silicified breccia for which a specific gravity of c2.2 is appropriate, the 1.6M – 2.3M tonnes translates to 0.72M – 1.04M m3. It also seems reasonable to assume that the 3.2 – 3.7g/t Au range used by MDA is the parameter used to define the “High-grade Au zones” represented on the map, as the extent of these zones correspond well with the 2.0+ g/t Au distributions of the core-logs and the average grades derived from them. The 3.2g/t+ range used by MDA conforms with the grades necessary for an economically viable sub-surface mining operation.

It then follows that the MDA calculations were probably based on a total strike length of c1140m ie the sum of the strike lengths of the 4 High-grade Au zones shown on the map.
Note that strike is used in the structural sense of being “the dimension which is at 90 degrees to the maximum inclination of a planar surface” a usage apparently not understood by most BB posters. To achieve an m3 of 0.72M – 1.04M the MDA calculations would have had to have been, for example:

1140m x 10m (average true thickness of zones) x 63m (average down-dip dimension of zones) = 71.8M m3, and:
1140m x 10m x 91.2m = 1.039M m3.

To be continued

Thanks SGD27 for posting the links. A lot of info to assimilate I know but should help with understanding some of the context of the CS Project.
Looks increasingly positive.

On 28.08.18 I posted under the title CS Project Resource Implications, reference to the planned Geofortis $20M pozzolan processing plant at Reno, Nevada which is intended to produce 600,000TPA of product from its nearby 150MT Lassenite resource. I further posted on 31.08.18 that the construction of this plant seemed to have been put on hold in mid 2017.
Whilst this presumably temporary halt to construction appears to remain, the company has been active in product R & D and has lodged a number of patents the latest of which, published 03.08.18, appears to have potentially significant implications for the use of natural pozzolans in the cement/concrete industry. The patent can be accessed from the following link, then enter 20180065888 into Search and click on Cement Formulations and Methods.

www.freepatentsonline.com

In summary the patent appears to claim rights (detailed in Claims 1-20) to pozzolanic formulations for use in concrete and mortar, derived from a process which involves inter-grinding of a natural pozzolan with a calcium carbonate source, prior to blending with at least one additional constituent.

The significance of this appears to be not just the beneficial rights to the process but more importantly the apparent superior qualities of the resulting products based on the use of Lassenite in the formulation. Lassenite, the nature of which is described in the section entitled “Backgound of the Invention” is similar to HessPozz in being a natural diatomite/volcanic ash mix. The range of superior qualities is outlined under “Brief Summary of the Invention” paragraph 2, of which the reduced water demand for concrete mixes whilst still achieving exceptional strength early in the cure cycle, implies a notable improvement in concrete formulation especially where rapid, eg 7-day, curing is required. The implication appears to be that such products will be superior to those derived from the production processes and formulations utilizing natural pozzolans currently used in the cement/concrete industry.

The Sept 3rd 2018 RNS announcement of the supply of a 100 ton bulk sample of Main Zone pozzolan to a potential large customer for commercial-scale testing will presumably evaluate a range of proprietary formulations and production processes confidential to that customer. As I posted on 02.09.18, the Nevada Cement Company might be that potential customer, seeking an alternative to its Fernley mine ASTM C618 Class N pozzolan source. Whoever the customer and whatever the outcome of the tests on the Main Zone pozzolan, the revelations of the Geofortis patent will be of influence, but to what extent is as yet unknown.

AGEOS/INTHENO

Safetrader1, there is no single mine licence required, rather there is a process of permitting from numerous local and regional authorities which cumulatively authorize and control a mining project throughout its developmental and operational life.
If you access the State of Nevada, Minerals Division website at www.minerals.nv.gov scroll down to links and click on State and Federal Permits Required….Feb 2015, the 11 page Bureau of Mines & Geology document will provide some indication of the permitting process, not all of which will apply to the CS Project however.
The most important and nearest to what could be called a Mining Licence is on page 9, the Bureau of Land Management regulations, for which the paragraph beginning “All Notices and Plans of Operation….” summarizes the scope of plans to be provided by the company. Those plans are referred to under “Mine Design” in the Sept 3rd RNS as the Plan of Operations & Reclamation, for which SRK Consulting are currently preparing mine designs, and which will be submitted for permitting in due course.
Hope that clarifies the issue.
AGIOS/INTHENO

The only cure for a persistent irritating itch is to stop scratching it.

The condition, known as seborrheic simplex thrives on attention and does not respond to conventional treatment.

The remedy requires total isolation of the patient and withdrawal of contact. This may induce a noxious reaction but rapidly leads to effective eradication of the pestilential condition. Re-apply the treatment to any subsequent re-occurrence of symptoms.
Ref: ITN Register of AIM-induced sociopathic illness.

AGEOS/INTHENO

Agreed Dubliner; the 100t Main Zone pozzolan sample is just what I would expect a major concrete producer to require and as I’ve indicated, from the data supplied by Tom Adams to NDOT, the Nevada Cement Co may have a crucial need to find an alternative to their Fernley source. Speculation I know, but sufficient quantity to run the trials required though we may have to wait a few months for completion.
All positives in today’s RNS but agree with fulmar29, another ex-MARLer if I recall correctly, that a re-rate in mkt cap seems unlikely at this stage.

Thanks for the welcome Mudstud. In for the long-haul so good to be back.

Hope you are right re relatively quick and successful workovers of Z21, Z28 and Z3 with the BD-260. I’m suggesting we may get a more cautious approach because of the stated discrepancy between historical well data and their operational experience to date. However we will know soon enough if the Hasanov-led investigations have given them the confidence to go ahead without further field-data.

The Company is currently in the process of revising its work programme with its new operational management. Once this is defined, Zenith will provide shareholders with a clear summary regarding its operational strategy for the rest of the year 2018.

The above quote from the August 13th RNS suggests to me that results from the two geological studies, the main content of the RNS, are likely to have a significant impact on future operational strategy, resulting in major changes to the work programme. Zardab will remain the initial focus but the drilling of an appraisal well will probably be prioritised and may even be the first operation with the BD-260 rig, thus utilizing the experience of the Robotics engineers who, as part of the lease agreement, will instruct operations for the first month. The data gathering component of this operation is designed to enhance geotechnical knowledge of the field and thereby assist in the drilling and rehabilitation of other wells, hence its likely prioritisation. The financially driven imperative will of course be to get one or more of the existing Zardab wells into production as soon as possible to boost revenue, however, to ensure any workovers have maximum chance of success the acquisition of additional field data may have to come first.

In the event of the BD-260 work programme remaining unchanged from that outlined in the June 6th RNS, ie commencing with workovers of Z-21, Z-28 and Z-3, it will presumably be based on very encouraging results from the targeted geotechnical investigations into those wells undertaken by Eldar Hasanov and his team. The appraisal well might then follow as part of the initial Genesis BQ500 rig programme in early 2019.

The revised work programme will, I assume, be released this month.

AGEOS/INTHENO

Continuation:

Adams gives the impression of a civil engineering geomaterials industry facing considerable challenges with the need for a better understanding of the interaction between the aggregate and pozzolanic components of cementitious products. The research he advocates on pp 30 of the presentation appears to be reflected in the numerous research initiatives which have and continue to be pursued at the University of Nevada, some specifically into the effectiveness of Nevada’s natural pozzolans as SCM’s (Secondary Cementitious Materials).

Adams also contributed much of the historical data to the NDOT (Nevada Department of Transport) 2017 Phase 1: Evaluation of …Northern Nevada Concrete Paving Mixtures, a research report into why current production paving (road) grade concrete has low flexural strength. Phase 2 will implement the experimental plan recommended from Phase 1, followed by a Phase 3 reformulation of Concrete Paving Mixtures. Although still in progress, the results of this study could have significant long term implications for the local natural pozzolan mining and concrete production industries. To date the only natural pozzolan used in these Concrete Mixtures has been the ASTM C618 Class N natural pozzolan provided by the Nevada Cement Co from its Fernley, Nevada mine. The composition of this pozzolan has changed over the years, presumably due to mining progression through strata of differing composition, and will potentially continue to change, online ref pp 55 (pp 42 of Report). Online page 65 (pp 52 of Report) details low strength test data at 3 and 7 days but increasing beyond 28 days for the Nevada Co Cement, although apparently decreasing overall between 2012 and 2016, again indicating a change in source rock composition. Maybe Nevada Cement will evaluate the CS Project pozzolan and conclude an offtake agreement as an alternative source to protect its NDOT and other supply contracts.

AGEOS/INTHENO

Tom Adams the geomaterials engineer appointed as a consultant to SRES in March, published, in April, a 49 page paper entitled Aggregates and Pozzolanic Materials Overview, which, as far as I recall has not been reported on this BB. Apologies if it has.
As the March 27th RNS explained he has considerable experience of, and stature within the Nevada State Natural Pozzolan industry and research community.

The paper can be accessed online via a search using the title and although limited in content due to being formatted as a presentation, nevertheless provides a succinct account of the state of the industry and its likely development over the next decade. The present role of natural pozzolans in the SW is indicated on pp 45 which lists only Nevada Cement, CR Minerals and Hess Pumice as current producers of a total 300,000TPY of raw-ground product. The absence from this list of Reno-Nevada-based EP Minerals, a major producer of diatomite and perlite based filtration products to over 70 countries (acquired by US Silica Holdings in May for $750M) supports my conclusion that the company does not operate a local perlite mine source for its Lovelock, Fernley and Clark Manufacturing Plants in Nevada and so could be a contender for offtake from the CP Project. Its Blair Manufacturing Plant in Nebraska, specialising in perlite filtration products also appears to lack a company owned mine source. Page 45 of the presentation also lists Kirkland Mining, Geofortis, SR Minerals (SRES subsidiary) and Pinyon as the only developers of new projects in the SW. Kirkland is nearing conclusion of a 5 year planning process for an initial 39Mt Reserve, 500,000TPY, HQNP mining project in Arizona, Geofortis I have referenced previously and Pinyon remains a mystery.

To be continued

Rodster, I am in contact with PC as a fellow geologist.

Mineralx, undoubtedly so. Every time I enter through the portals of Burlington House to consult the Lyell library I remind myself of the universal dictum; whatever knowledge of a subject you possess, your ignorance is greater.

Thanks Dubliner; not sure how I missed that when it came out. That ups the potential for both the perlite and the non-perlitic component of both Main and Tuff Zones at least for cementitious products.
Looking forward to next update.