The resource will be a very good increase. It should be big.
"The Company expects to announce an updated resource estimate in Q3 2008."
When taking off the grade reductions..see below what coffee has done to the current resource
Coffey also re-calibrated the radiometric data based upon a statistical study by firstly reducing values by 30 to 40ppm and then applying a factor of 0.85 to the result.
we get the following.
currently 59.3 million pounds has had the reductions enforced. This ended up with an average grade of 197ppm. Lets add the lowest possible reduction they have placed on the grades. So lets add 30ppm to bring that resource grade up to 227ppm. Dont forget we still need to take the factor of .85 off this.
So get get roughly the correct resource we get the tonnage.
136,400,000 Tonnes and muliply this by .227 <-- The grade without the 30-40ppm reduction.
we get
30.9 million tonnes
convert this to pounds and we get 68 million pounds.
Take off the factor of .85 on this and we get an additional 10 million pounds.
New resource is 78 million pounds without reductions involved + the indicated resource of 12.9 million pounds with a grade established of 234ppm
In total the current resource should have been 90 million pounds if no reductions were enforced.
So we can count on that..how much will the resource increase by with additional drilling though.
the latest announcement stated the following
Drilling at Anomaly A totalled 441 RC holes for 117,198 metres and 47 Diamond Core holes for 18,123 metres over the 2.3 kilometre strike that has been defined for the resource estimate.
Previously the resource was completed from
"The resource has been estimated using 223 RC and 19 Diamond core holes drilled by the Company up to about mid-December into Anomaly A over a strike extent of approximately 2.2km."
The bulk of the resource was modeled down to about 300m vertical. Drilling is ongoing at the deposit with a view to producing a final resource down to around 400m.
So the strike of the resource has gained .1 of a KM. Then we have to add an additional 100m of mineralised resource to the final resource. Thats easy enough.
90million pounds / 3 = 30 million pounds.
So if the final resource is going to be taken to 400 meters depth we will get
90million pounds + 30 million pounds + that additional .1km of strike.
Im guessing a final resource of around 120-125 million pounds with an average grade of 230ppm.
cheers.
BMN Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
