With Brian due back in country and the eager anticipation of assay updates, antimony add ins and new La Dem Scoping Study I decided to throw a few sums at what's currently in ground for this little explorer.
Also someone asked about old results from across the whole El Pilar concession carried out by KWG, so I gathered the info from the 1997 release.. Not bad for a pick and shovel with recovery a given..
KWG RESOURCES INC. - CUBA: TRENCHING RESULTS FROM GASPAR PROPERTY Trenching on the Gaspar property in west-central Cuba is revealing a significant zone of gold mineralization.Four trenches have been excavated on the property, which is a 50-50 joint venture between KWG Resources (TSE) and Cuban state-owned Geominera. Trenchs returned...
MONTREAL, Feb. 27 /CNW/ - KWG Resources Inc. states that the company has received extremely encouraging new trenching and metallurgical results from to a depth of 1.5 metres averaged 5.6 g/t Au over 82 metres, significantly higher than previously reported trenches taken from surface. In addition, five higher than previously reported trenches taken from surface. In addition, five larger samples taken from these trenches averaged 12.7 g/t Au. The company content for feasibility purposes. (x) Previously reported trenches ------------------------------------------------------------------------- Trench No. Length (m) Depth (m) Grade (g/t Au) ------------------------------------------------------------------------- 1(x) 166m Surface 3.77g/t ------------------------------------------------------------------------- 2(x) 58m Surface 1.3g/t ------------------------------------------------------------------------- 3(x) 57m Surface 1.33g/t ------------------------------------------------------------------------- 4(x) 142m Surface 2.74g/t ------------------------------------------------------------------------- 5(x) 186m Surface 1.38g/t ------------------------------------------------------------------------- 6(x) 316m Surface 0.6g/t ------------------------------------------------------------------------- 7(x) 108m Surface 4.1g/t ------------------------------------------------------------------------- ------------------------------------------------------------------------- (New) (4.5) 74m 1.5m deep 7.48g/t ------------------------------------------------------------------------- (New) (7) 83m 1.5m deep 5.124g/t (To depth) (Incl. 10.55 g/t Au over 32m) ------------------------------------------------------------------------- (New) (7a) 90m 1.5m deep 5.25g/t ------------------------------------------------------------------------- Preliminary recoveries of 77% from a 50 day leach on material crushed to 16mm and with a head grade of 11.40 g/t Au have been reported by Kappes, Cassidy & Associates on material submitted to them. Further to these, the company has taken five larger samples from individual trenches. Three of which weighed 60 kilograms each and a further two which weighed 100 kilograms each, all of which is tabulated below: ------------------------------------------------------------------------- Bulk Location Head Recovery Crush Time -Sample Grade Size-g/t Au ------------------------------------------------------------------------- M 1+2+3 Avg Trench 13.9g/t 90% recovery (-1.9mm) 22 Hrs Lakefield 1 & 4 ------------------------------------------------------------------------- M4 Trench 7 12.9g/t 90 % recovery (-1.9mm) 70 Hrs Lakefield ------------------------------------------------------------------------- 25022 7 11.4 g/t 77 % recovery (-16mm) 50 Kappes Cassidy Days ------------------------------------------------------------------------- KWG has conducted the additional trenching as mini-bulk results were four times higher than previously reported drill results.
What that all adds up to 1280 meters of trenching at El Pilar for a total of 3439 gram meters with an av grade of 3.26 grams and none of it deeper than 1.5m if you don't mind! They have the ground and the goods so why not the SP?
The answer to that I don't really know other than the market hasn't [icked up on the size of the value disconnect as yet.
For Example. The company proved and stated in the last ann that historical drilling and trenching results spread over all of the concession. Which includes a 2km long mineralized corridor and that beneath the oxide cap they encountered mineralization which was open at depth.. Read the fine print for ref; "Deeper drilling at El Pilar showing that the copper-gold mineralization continues at depth in sulphides as chalcopyrite in veinlets. This indicates the drilling to date has not located the higher-grade potassic core where chalcopyrite bornite-magnetite will be present in a vein network"
Then note that the head Geo who has his nck on the line states that; "The level of erosion and the styleof alteration and porphyry veiningindicate the mineralized porphyryis preserved and the potassic coreis immediately below the lowerparts of the phyllic cap • The in-situ potassic core and sulphide zone will extend downvertically over 1km from theSurface expression.
The man is not saying it might but that it WILL extend to over 1km directly below the phyllic cap..
I'd say he's called it wouldn't you?
If in doubt I suggest having a little gander at the attached link to understand Leached capping and Porphyry deposits.
A little extract from a copper assessment sheet. 1. Where would you expect copper to be found based on what you just discussed in class? Draw on he map below. Why?
A. Igneous intrusion with surrounding alteration.
The paper then goes on to say. Typical mines today have ore grades of only 0.6 percent copper. Since metal concentrations occur at much lower grades, the copper concentrations are measured in parts per million (ppm). If a sample has 1ppm copper, this means that in 1 million lbs of rock, there is 1 lb of copper.
I used 0.46% in my calcs just for a buffer and because that was the lower value for the Hot Chilli Au-Cu Porphyry as a comparison
1
8,000,000
usd
In Ground Value = Profit * 0.05%
,560,000,000
2
3
$208,500,000
usd
75% Share of IGV
4
5
$102,165,000
usd
49% Share of 75% IGV
6
7
$148,139,250
aud
49% Share x 1.45 conversion rate
8
9
$0.31
Value to Antilles SP
Add in the oxide Cap and you get circa 31c for sale of 75% of the IGV of the El Pilar Porphyry & another 5.3c for the oxide Cap mean av In Ground Value.
La Demajaguar adds approx 32c at 49% of NPV based off the old SS figures so there may be room to grow there?
And Antonio another 6c based off the inferred resource figures given. Then finally we have the Arbitration which sits pending at $45m usd..
Up to the individual if you count it in or out, but the value of the other projects (even at in ground value) is clear to see.
Which at 50% of the total less Arbitration is still 37c or roughly just shy of 10x for ol H8tey...
So I reckon with all the news pending it's worth a punt IMO... ;-) GLTAH
(20min delay)