abu or current producer if you are a gold bull, page-54

"chuk , so you are thinking we may have add 33% to our resource based on the may scoping study."

Not quite what I was saying Allday, but just as importantly;
What I said was that I thought we are likely to add 33% to our open pit mining inventory just as a result of recently discovered veins that we have seen assays results on.
Open pit mining inventory as opposed to the jorc resource which extends below the likely open pit depths.
That is (I think quite reasonably) assuming these new veins that we have seen assays for extend to at least 125ms and also including part of the jorc resource that might now be included by a deepening of the pit to 125ms, from a 100ms max envisaged in the scoping study. Keeping in mind though that the new veins need to be proven up with drilling for us to be 100% sure about depth extensions.
However, I think a vein stretching along surface with strong gold mineralisation over a length exceeding 300ms is almost certain to be similarly mineralised to well below 125ms depth so I am comfortable with the 125m assumption.
I have not included almost certain additions from Golden Hind with 40ms of visible gold along surface and likely additions from the 250ms of northern extensions of the eastern vein yet to be reported on.
We can’t make even an educated guess on those without at least the length of vein mineralised, average grade and average vein width.
Golden Hind certainly appears to have potential to add significant ounces.
I am confident my initial estimate of a 33% increase to open pit recoverable gold will easily be exceeded once we see assays from Golden Hind (considering the amount of visible gold) and hopefully further through northern extensions of the east vein but also hopefully more through the discovery of buried veins through drilling in between the current resource and the eastern vein.
Further potential exists as I mentioned earlier through infill drilling of gaps left in the current jorc resource by insufficient previous drilling.
This alone could potentially add 10-20% more ounces but I wouldn’t factor that in until drilling proves it up.
Chances seem good that we could already see a 50% increase in open pit recoverable gold based on infill drilling and what has been found to date since the scoping study.
To me, roughly 33% seems very likely, and as you said we only burned $3mill cash of $26mill to find these veins (as well as to sample another 2kms of surface veins).
We will spend another $6mill next quarter but by then we should have done enough for a sizeable increase to the jorc resource as well as plenty of work towards the FS.
We still have another 2kms plus of surface samples to come (so far), plus plenty of drilling, so by the end of the year who knows how much the resource might grow by.
Golden Hind has certainly increased the prospectivity of this project. What might lie just below cover (or outcropping) in the half km plus between the jorc resource and Golden Hind?
Now that we know very high grades exist that far south the potential to increase ounces has increased very strongly.
Don’t forget the very high grade drill intercept 1km north of the jorc resource either. How many veins may lie in the km between that and the jorc resource under cover?
This has multi million ounce potential written all over it.
How many deposits with that sort of potential (and at least 1mill oz looking likely) do any of us know of with 10g/t plus average grades starting on surface currently trading on the ASX?
I know of one.
Just as importantly, how many with any type of deposit very close to an established mining district, roads etc, with an estimated capex of under $30mill with a scoping study estimated 130,000oz per year capacity?
Similarly importantly for me is that the deposit sits in our own country.
This deposit is unique as far as I know- at least ever since Andean was taken over- but then Andean was in Argentina not Australia.