TSO fair value? Short term target 30c, medium term 60c!, page-357

Hola Amigo's, and actually while we are here in the old TSO fair value thread why don't we have a look?

And while we are looking lets look at what 62 & 67-68 may bring to the table which might be soon as they seem to have been held up somewhat..

	ZDDH00062	7036333	341803	624	-60	240	300
1	ZDDH00067	7036389	341781	647	-60	240	306.8
2	ZDDH00068	7036371	341744	627	-60	240	323
3
4	ZDDH00065	7036542	341918	636	-60	60	269.3
5	ZDDH00072	7035932	341845	595	-60	60	450.7

On Mach8's drill plot they appear to be holes pending with orientation shown.. Now 62, 67 & 68 which when you realise hole 44 didn't hit mineralisation till 104 metres (Thereby possibly defining the boundary limit of the fault structure linking drone hill to Ternera) means that with all being 300-323m in length will hopefully cut straight in to that drone hill arterial.. We all know the one by now..

	Hole_ID	Zones	Start Depth	From (m)	To (m)	Interval	Au (g/t)	Comments	Av gr/m	Total Av gr/m
1	ZDDH0044	1	104	104	107	3	0.92	xx	2.76	2.76
2	ZDDH0044			104	105	1	2.25	inc

That lot plus 65 & 72 (which I am keen on seeing) will probably do me... I mean that should give us a sizeable area to pin down for MRE


80+ holes drilled and at an average 300m per hole 30'000m buys us circa 100 holes.. and that should pin down the area in salmon here nicely under JORC for MRE at even spacing and give us a sniff around other areas perhaps?


But the main game between now and July will be proving up (via drill spacing infill) an economical MRE that we can apply feasibility values to and hopefully start to turn resources in to reserves.



So the question becomes how much gold may be residing in a set area (750 x 600 x 260 av depth hole 0-75) as a potential resource..

And that all comes down to what gold is in the ground, and assumptions around how this is reported

	Hole_ID	Zones	Start Depth	From (m)	To (m)	Interval	Au (g/t)	Comments	Av gr/m	Total Av gr/m
1	ZDDH0010	4	31	31	33	2	2.47	XX	4.94	116.73
2	ZDDH0010	4	60	60	61	1	1.16	XX	1.16
3	ZDDH0010	4	66	66	67	1	1.04	XX	1.04
4	ZDDH0010	4	75	75	159.3	84.3	1.3	XX	109.59
5	ZDDH0010			75	104	29	2.95	inc
6	ZDDH0010			82.5	86.45	3.95	4.97	inc
7	ZDDH0010			91	102	11	4.7	inc
8	ZDDH0010			93	97	4	8.5	inc
9	ZDDH0010			120	126	6	1.11	inc
10	ZDDH0010			149	159	10	1.07	inc

Note hole 10 reported 4 separate zones of mineralisation with the 4th zone between 75 & 159m recording 6 sub zones for an av 1.3 g/t over 84.3m while the total strike interval was 88.3m out of a total depth of 177.7

	Hole_ID	Zones	Start Depth	From (m)	To (m)	Interval	Au (g/t)	Comments	Av gr/m	Tot Interval	Tot Av g/t	Total Av gr/m	RL (Variation 136M)	Depth
1	ZDDH10	4	31	31	33	2	2.47	XX	4.94	88.30	1.32	116.73	628	177.7
2	ZDDH10	4	60	60	61	1	1.16	XX	1.16
3	ZDDH10	4	66	66	67	1	1.04	XX	1.04
4	ZDDH10	4	75	75	159.3	84.3	1.3	XX	109.59

So what about the other 89.4m that isn't recorded as a reportable figure? And by reportable I mean at an applied economic cutoff greater than .2 g/t.

Initially you may think it is just barren rock, but this isn't the case.. Because as you can see from one of the early downhole log files every single meter up to 176 hit some form of gold. Sure it didn't classify as reportable but it is there and it leaches out with all the other gold both high & low grade and that's what makes bulk tonnage mining so profitable... It is literally mineralised from surface to finish at some value and over vast tonnages that soon adds up.. Refer TSO Prospectus for all downhole data.

	Hole ID	From (m)	To (m)	Interval	AU (g/t)
1	ZDDH0010	0	1.5	1.5	0.005
2	ZDDH0010	1.5	3	1.5	0.01
3	ZDDH0010	3	4	1	0.005
4	ZDDH0010	4	5	1	0.01
5	ZDDH0010	5	5.5	0.5	0.005
6	ZDDH0010	5.5	6	0.5	0.005
7	ZDDH0010	6	7	1	0.005
8	ZDDH0010	7	7.8	0.8	0.005
9	ZDDH0010	7.8	8.55	0.75	0.08
10	ZDDH0010	8.55	9	0.45	0.12
11	ZDDH0010	9	10	1	0.02
12	ZDDH0010	10	10.95	0.95	0.04
13	ZDDH0010	10.95	11.65	0.7	0.02
14	ZDDH0010	11.65	12.5	0.85	0.005
15	ZDDH0010	12.5	13.5	1	0.005
16	ZDDH0010	13.5	14	0.5	0.02
17	ZDDH0010	14	14.8	0.8	0.005
18	ZDDH0010	14.8	15.3	0.5	0.02
19	ZDDH0010	15.3	16	0.7	0.005
20	ZDDH0010	16	17	1	0.02
21	ZDDH0010	17	18	1	0.1
22	ZDDH0010	18	19	1	0.03
23	ZDDH0010	19	20	1	0.02
24	ZDDH0010	20	21	1	0.02
25	ZDDH0010	21	22	1	0.01
26	ZDDH0010	22	23	1	0.01
27	ZDDH0010	23	24	1	0.005
28	ZDDH0010	24	25	1	0.005
29	ZDDH0010	25	26	1	0.24
30	ZDDH0010	26	27	1	0.03
31	ZDDH0010	27	28	1	0.14
32	ZDDH0010	28	29	1	0.05
33	ZDDH0010	29	30	1	0.14
34	ZDDH0010	30	31	1	0.23
35	ZDDH0010	31	32	1	2.67
36	ZDDH0010	32	33	1	2.28
37	ZDDH0010	33	34	1	0.03
38	ZDDH0010	34	35	1	0.07
39	ZDDH0010	35	36	1	0.06
40	ZDDH0010	36	37	1	0.06
41	ZDDH0010	37	37.8	0.8	0.02
42	ZDDH0010	37.8	38.36	0.56	0.01
43	ZDDH0010	38.36	39	0.64	0.01
44	ZDDH0010	39	40	1	0.005
45	ZDDH0010	40	40.6	0.6	0.005
46	ZDDH0010	40.6	41.12	0.52	0.005
47	ZDDH0010	41.12	41.5	0.38	0.005
48	ZDDH0010	41.5	42	0.5	0.005
49	ZDDH0010	42	43	1	0.02
50	ZDDH0010	43	44	1	0.005
51	ZDDH0010	44	45	1	0.02
52	ZDDH0010	45	46	1	0.02
53	ZDDH0010	46	47	1	0.05
54	ZDDH0010	47	48	1	0.04
55	ZDDH0010	48	49	1	0.005
56	ZDDH0010	49	50	1	0.005
57	ZDDH0010	50	51	1	0.02
58	ZDDH0010	51	52	1	0.18
59	ZDDH0010	52	52.9	0.9	0.02
60	ZDDH0010	52.9	53.5	0.6	0.03
61	ZDDH0010	53.5	54.2	0.7	0.005
62	ZDDH0010	54.2	55	0.8	0.15
63	ZDDH0010	55	56	1	0.19
64	ZDDH0010	56	57	1	0.05
65	ZDDH0010	57	58	1	0.21
66	ZDDH0010	58	59	1	0.08
67	ZDDH0010	59	60	1	0.1
68	ZDDH0010	60	61	1	1.16
69	ZDDH0010	61	62	1	0.1
70	ZDDH0010	62	63	1	0.02
71	ZDDH0010	63	64	1	0.18
72	ZDDH0010	64	65	1	0.02
73	ZDDH0010	65	66	1	0.005
74	ZDDH0010	66	67	1	1.04
75	ZDDH0010	67	67.7	0.7	0.05
76	ZDDH0010	67.7	68.7	1	0.03
77	ZDDH0010	68.7	69.5	0.8	0.02
78	ZDDH0010	69.5	70	0.5	0.05
79	ZDDH0010	70	71	1	0.02
80	ZDDH0010	71	72	1	0.03
81	ZDDH0010	72	73	1	0.01
82	ZDDH0010	73	74	1	0.01
83	ZDDH0010	74	75	1	0.02
84	ZDDH0010	75	75.55	0.55	0.46
85	ZDDH0010	75.55	76.25	0.7	7.9
86	ZDDH0010	76.25	77	0.75	0.41
87	ZDDH0010	77	78	1	0.16
88	ZDDH0010	78	79	1	1.47
89	ZDDH0010	79	80	1	0.71
90	ZDDH0010	80	81	1	0.85
91	ZDDH0010	81	82	1	0.03
92	ZDDH0010	82	82.5	0.5	0.5
93	ZDDH0010	82.5	83.45	0.95	8.3
94	ZDDH0010	83.45	84	0.55	0.45
95	ZDDH0010	84	85	1	0.01
96	ZDDH0010	85	85.75	0.75	0.92
97	ZDDH0010	85.75	86.45	0.7	15.4
98	ZDDH0010	86.45	87	0.55	0.43
99	ZDDH0010	87	88	1	0.34
100	ZDDH0010	88	88.64	0.64	2.41
101	ZDDH0010	88.64	89.4	0.76	0.17
102	ZDDH0010	89.4	90	0.6	0.07
103	ZDDH0010	90	91	1	0.4
104	ZDDH0010	91	92	1	3.34
105	ZDDH0010	92	93	1	3.01
106	ZDDH0010	93	94	1	10.2
107	ZDDH0010	94	94.5	0.5	1.8
108	ZDDH0010	94.5	95.5	1	4.59
109	ZDDH0010	95.5	96	0.5	5.6
110	ZDDH0010	96	97	1	15.5
111	ZDDH0010	97	98	1	0.1
112	ZDDH0010	98	99	1	3.66
113	ZDDH0010	99	100	1	3.37
114	ZDDH0010	100	101	1	2.25
115	ZDDH0010	101	102	1	1.95
116	ZDDH0010	102	103	1	1.23
117	ZDDH0010	103	104	1	0.71
118	ZDDH0010	104	105	1	0.23
119	ZDDH0010	105	106	1	0.18
120	ZDDH0010	106	107	1	0.04
121	ZDDH0010	107	108	1	0.02
122	ZDDH0010	108	109	1	0.94
123	ZDDH0010	109	110	1	0.03
124	ZDDH0010	110	111	1	0.01
125	ZDDH0010	111	112	1	0.2
126	ZDDH0010	112	113	1	0.005
127	ZDDH0010	113	114	1	0.005
128	ZDDH0010	114	115	1	0.005
129	ZDDH0010	115	116	1	0.005
130	ZDDH0010	116	117	1	0.005
131	ZDDH0010	117	118	1	0.005
132	ZDDH0010	118	119	1	0.005
133	ZDDH0010	119	120	1	0.005
134	ZDDH0010	120	121	1	1.25
135	ZDDH0010	121	122	1	1.1
136	ZDDH0010	122	123	1	2.63
137	ZDDH0010	123	123.55	0.55	0.46
138	ZDDH0010	123.55	124.5	0.95	0.19
139	ZDDH0010	124.5	125	0.5	0.45
140	ZDDH0010	125	126	1	1.04
141	ZDDH0010	126	127	1	0.39
142	ZDDH0010	127	128	1	0.36
143	ZDDH0010	128	129	1	0.58
144	ZDDH0010	129	129.74	0.74	0.42
145	ZDDH0010	129.74	130.5	0.76	0.46
146	ZDDH0010	130.5	131	0.5	0.21
147	ZDDH0010	131	132	1	0.94
148	ZDDH0010	132	133	1	0.32
149	ZDDH0010	133	134	1	0.09
150	ZDDH0010	134	134.95	0.95	0.32
151	ZDDH0010	134.95	135.6	0.65	0.24
152	ZDDH0010	135.6	136.5	0.9	0.01
153	ZDDH0010	136.5	137	0.5	0.005
154	ZDDH0010	137	138	1	0.12
155	ZDDH0010	138	139	1	0.05
156	ZDDH0010	139	140	1	0.005
157	ZDDH0010	140	141	1	0.66
158	ZDDH0010	141	142	1	0.005
159	ZDDH0010	142	143	1	0.05
160	ZDDH0010	143	144	1	0.02
161	ZDDH0010	144	145	1	0.005
162	ZDDH0010	145	146	1	0.005
163	ZDDH0010	146	147	1	0.005
164	ZDDH0010	147	148	1	0.005
165	ZDDH0010	148	149	1	0.01
166	ZDDH0010	149	150	1	1.26
167	ZDDH0010	150	150.6	0.6	6.3
168	ZDDH0010	150.6	151.6	1	0.57
169	ZDDH0010	151.6	152.3	0.7	0.26
170	ZDDH0010	152.3	152.85	0.55	0.03
171	ZDDH0010	152.85	153.85	1	2.11
172	ZDDH0010	153.85	154.6	0.75	0.04
173	ZDDH0010	154.6	155.5	0.9	0.01
174	ZDDH0010	155.5	156.5	1	0.05
175	ZDDH0010	156.5	157.5	1	0.18
176	ZDDH0010	157.5	158.5	1	1.97
177	ZDDH0010	158.5	159.3	0.8	1.03
178	ZDDH0010	159.3	160	0.7	0.02
179	ZDDH0010	160	161	1	0.005
180	ZDDH0010	161	162	1	0.005
181	ZDDH0010	162	163	1	0.03
182	ZDDH0010	163	164	1	0.02
183	ZDDH0010	164	165	1	0.01
184	ZDDH0010	165	166	1	0.005
185	ZDDH0010	166	167	1	0.07
186	ZDDH0010	167	168	1	0.005
187	ZDDH0010	168	169	1	0.005
188	ZDDH0010	169	170	1	0.005
189	ZDDH0010	170	171	1	0.005
190	ZDDH0010	171	172	1	0.005
191	ZDDH0010	172	173	1	0.02
192	ZDDH0010	173	174	1	0.005
193	ZDDH0010	174	175	1	0.12
194	ZDDH0010	175	176	1	0.005

In fact of the first 16 holes on which we have full log data out of 3026 odd metres only 17-18 or so didn't report anything.. Roughly a 94-95% hit ratio and all started from surface as shown..

	Hole ID	From (m)	To (m)	Interval	AU (g/t)
1	ZDDH0001	0	1	1	0.08
2	ZDDH0002	0	1	1	0.01
3	ZDDH0003	0	4	4	0.32
4	ZDDH0004	0	3	3	0.14
5	ZDDH0005	0	1	1	0.02
6	ZDDH0007	0	1	1	0.03
7	ZDDH0008	0	1	1	0.17
8	ZDDH0009	0	1	1	0.04
9	ZDDH0010	0	1.5	1.5	0.005
10	ZDDH0011	0	1	1	0.02
11	ZDDH0012	0	1	1	0.11
12	ZDDH0013	0	1	1	0.6
13	ZDDH0014	0	1.5	1.5	0.15
14	ZDDH0015	0	11.9	11.9	0
15	ZDDH0016	0	5.3	5.3	0

Across 3000+ metres and 16 holes the average value was .475 g/t..

So what does this mean, basically it means that everything within a defined mineralised area of say 750 x 600 x 260av contains gold.. We don't sort it or separate it we just dig it up crush it and process it all together. At which point 99% of which is recoverable.. And it is extremely economical to do so..

Plus once you know the av value of each meter it becomes far simpler to calculate the potential resource contained within the area in pink (surface mineralisation)

Length

Width

Av Depth

SG

g/t

750

x

600

x

260

x

2.5

x

0.475

292,500,000

Tonnes

138,937,500

Grams

138937.5

Kilos

divide grams by 1000

4,844,751

Ounces

multiply kilos by 34.87

The above figure is based off the results achieved over 3000m and 16 holes continuing over the whole resource area without major deviation occurring which we have not seen so far other than to return higher grade results in the southern extension area..

And at a potential 4moz+ you'd have to think Pac Partners estimate of 19c based on 1 million oz would mean there is a bit of room left for SP appreciation to occur should the figures stack up.. In my opinion of course... Though I do feel we may be re-rating off the basis of something, could be the resource potential & the $24m cash at bank to realise it over the next 6 & then 12m.... What do you reckon? 8tey

And just for the record the average g/t figure across all holes at present from ZDDH01 to ZDDH75 is 1.73g/t So we are just waiting on Zeff to give us a number...