drill hole 2 excellent results $$$$, page-21

Asterisk,

In the last 5h and 30 min only 3.85m has traded out of which only 500k was sold down at 1.6c.

Whoopie doo.
To me it looks like some trader(s) who have no idea about the grades had sold down.

If the grades were so bad or s**t (as you described them in one of your previous posts) don't you think that there would have been an avalanche of sale orders going through?

We all knew that in the current, uncertain market, any announcement would have been sold into.

Now that I've had enough time to re-read and digest today's announcement let's have a look at those grades a bit closer.

But before I get to the grades, let's remember what is our objective at Bogdan.

The previous announcements told us that we are looking for copper, silver, lead and zinc and our target has been a mineralisation of 1.5%-2% of Cu.

We know that our next door neighbour (KGHM) averages 1.26% Cu and 58g Ag (see today's announcement).

We also know that based on the above mineralisation, KGHM is one of world's largest copper and silver producers. Right?

Let's now disect our grades from the first hole.
From the table on pg 4 of today's announcement:

Over a 2m interval we have found the following:

Cu - 0.42%
Pb - 2.39%
Ag - 18.9 g/t

Over 1m interval we have found the following:

Cu - 0.36%
Pb - 4.77%
Ag - 27.5 g/t

Now let's have a look at the current PRICE equivalent to Cu:

Pb - it's 0.26% of the price of Cu
Ag - 30g/t of Ag = 0.4% of Cu

Therefore, the Cu equivalent % are as follows:

Over 2m interval:

Cu - 0.42%
Pb - 0.62% (Cu equivalent)
Ag - 0.25% (Cu equivalent)

Total = 1.29% Cu

Over 1m interval -

Cu - 0.36%
Pb - 1.24% (Cu equivalent)
Ag - 0.37% (Cu equivalent)

Total = 1.97% Cu

Immediately these figures look so much better, don't they?


Now let's have a look a bit deeper into the announcement.

Unlike most Cu ore bodies found in Australia which slope down as much as 70%, our body is basically flat as a pancake which gently slopes away from the fault line.

This is one of the main reasons why we are only talking about a mineralization thickness of only 2m.

I would envisage that the further we drill away from the fault line, the ore body will thicken up. As we know, KGHM's ore body goes from 2m (close to the fault line) up to about 19m at the other end.

Another important fact is that Hole 2 has also hit the Kupferschiefer mineralisation system which suggests that this system may be widespread over the entire Bogdan tenement (42 sqkm).
It also states that a 2m interval is all that KGHM requires for exploitation and mining operation!

If we now take an average of 1.5% Cu equivalent over just 2m average and multiply it by an area of 42 sqkm we wil get a $9 billion resource!!!

You can do your own figures at 2% Cu equivalent.


One other point that's also worth touching on is the visual evidence of mineralisation.

Some may question how can a geo see a 0.4% Cu in a core?

He can't, but what he can see with a naked eye and/or microscope is galena or pyrite.

Galena is the natural mineral form of lead sulfide. It is the most important lead ore mineral and hosts lead mineralisation while chalcopyrite is a copper iron sulphide which hosts copper.

So the visual inspection tells the geo that there's a good possibility of Cu or Pb contained in those two minerals. How much, can only be determined by obtaining assay results.

Hopefully, this helps everyone to better understand today's announcement.

Remember, that it doesn't matter how much Cu we find there as long as there are other minerals there that we can sell.


All good and let's now wait for hole 2 results.

GLTA.