Understanding the details of an RNS17 Apr 2018 10:30
Here are some questions and answers that will help people better understand the drill results of gold and in our case gold / copper.
Mining results are all about grade, grade, and more grade but then after the grade the length of the intercept is important. You should also look for lots of drill holes.
Q) What are the different types of drill programs that companies engage in (diamond, reverse circulation, step out, etc.)? What is the difference between them?
A) Reverse circulation does not provide results that are as comprehensive as diamond drilling. It is a way to find some preliminary material. And if you have something substantial, you might start diamond drilling.
In the scale of things, diamond is an A-grade and reverse circulation is a C-grade drill hole.
Q) What do drill maps showing drill holes tell investors?
A) In a drill map, investors should look for the patterns that are there. If you have a situation where there are five drill holes stretched out over a mile, you could ask if they accurately reflect the deposit. If there are not enough drill holes the deposit may not be as comprehensive as you think it is.
Q) Is there a set standard for the number of holes that should be drilled?
A) It doesn't work like that. What is important is how close the holes are to each other, what the grade is, and what the depth is. If you have a drill that is 300 meters deep and if you get mineralization in the last 10 meters, it is not very good. You cannot do an open pit, you will have to go underground and it might not be worth the depth.
Drilling is a lot cheaper if the deposit is shallow.
Q) Why is it important for investors to see the angles the holes were drilled at and to see cross sections of such maps?
A) It is not that important for investors. Some investors what they want to do is see if there is a significant pattern there to determine if there is enough mineralization all over the place.
Q) Can you briefly explain grades? What are the benefits of a high-grade, low-grade deposit?
A) If it is a high-grade deposit it is a good indicator of the extent of mineralization. If the grade is small, it may not be worth drilling. In gold mining, 10 g/t is a high-grade deposit for gold. 0.5 g/t is a lower grade that shows the area is not densely populated with gold.
But it all depends on the price of gold. At current prices, even lower-grade deposits make sense to drill as the price justifies the expense involved in drilling. This is also the case at GEO given our gold is the kicker bonus or cream on top of the copper.
Q) Do different types of deposits (poryphyry, vein, etc.) affect the type of grade?
A) Poryphyry tends to be massive, so it is a large lump of mineralization. A deposit is either poryphyry or vein. Despite a deposit being poryphyry or vein what�s important is the grade of the deposit. Different companies can make a success of either type of deposit.
A poryphyry could be spread ove
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