LABOLA RESOURCE ESTIMATION26 Dec 2020 16:42
Good afternoon everyone
I know some of us will be sneaking in to see if there are any early New Year presents. Well, you will be glad to hear that I have re-read all of the material on Labola again and thought would have a go at working out estimated resource at Labola. Please feel free to correct me on the undermentioned parameters / assumptions that I have used in my calculations and if required, I will re-calculate the workings:
PARAMETERS (AND ASSUMPTIONS) USED ARE AS FOLLOWS:
a) Strike length = 9km (=9000m)
b) Width = taken average across the strike length = 0.3km (=300m)
c) Depth = taken average across the strike length = 0.1km (=100m)
d) Density for the area = assumed industry average in west Africa = 2.4 Tonnes /meter cube
e) You will note later in the calculation that I will aim to take ONLY 1/10 th of estimated resource figure to take account of the fact that even though some holes may have returned say over 100 g/Tn, these COULD BE isolated ones or indeed the width of the depth in some areas may not be the same as assumed throughout the strike length of 9km. I have even gone further to reduce the strike length of 9km by 1/10 th on the assumption IF the strike length was NOT CONTINUOUS ( IT MAY BE THE CASE THAT THE WHOLE OF THE STRIKE LENGTH IS CONTINUOUS and I therefore do not need to reduce 9km by 1/10th)
(f) Recovery rate of gold = 80%
So, here it is:
(1) 9km x 0.3km x 0.1km x Density
(2) = 9000m x 300m x 100m x (2.4 Tonne/meter cube)
(3) = 270,000,000 meter cube x 2.4 Tonne/ meter cube
(4) = 648,000,000 Tonnes
(5) Resource in grams = 648,000,000 T x 2 grams /T = 1,296,000,000 grams
(6) Resource in ounces - 1,296,000,000 grams / 34.2857 = 37,800,016 ounces DEVIDE BY FACTOR 10 = 3,780,000 ounces
(7) Recovery rate of gold (say 80%) x 3,780,000 ounces = 3,024,000 ounces
(8) This would be similar to the resource announced recently by GGP (excluding the copper equivalent) but with 30 times less shares in issue than GGP.
(9) If this turns out to be the case (and I have been conservative in taking only 1/10 th to allow for elimination of high grade isolated holes, any non-continuous mineralisation across the 9km length strike and the reduction in the recovery rate to only 80%) then at 3m ounces, taking into account our share in Labola, the impact on PAT share price can be very significant.
(10) I will likewise perform similar workings on other projects in time to come.
Please feel free to correct me in any way so that I can re-calculate if required.
GLA
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