Ann: Broadcast - ABM identifies new high grade go, page-6

re: Ann: Broadcast - ABM identifies new high ... A little more on that depth potential fmx.
One of our deepest holes, OPRC100021, hit 9m @ 100.92g/t including 2m @ 413g/t.
It’s not just the surface trenches that can give us spectacular results.

Budgie4 said;
"Page 2 of the study, under pit optimisation states that the pit design was only included to a maximum depth of 100 meters.
So can we look forward to adding another 50-100 meters of high grade zones to the current indicated resource in the near future?”

Budgie, are you are talking about adding 50-100 meters to the depth or along strike?
If its depth, it is a good point you raise.

Here is some math for us to think about.

If you double the width of a pit you can double the depth for the same slope on the pit walls assuming the length is already double the width and we do have that and assuming you have the gold to justify going deeper- and we do appear to have a lot of that although much more drilling is needed to better define how much.
The real significance here is that if you double the width and depth and assuming 45 degree angle on pit walls, you increase the cross sectional area by a factor of 4.
So, to keep this example simple, assuming you have gold spread through the area reasonably uniformly, you don't double the gold contained by doubling the width but you quadruple it.
I am not suggesting that is what will happen (especially the uniform distribution of gold) but I am just illustrating the significance of this latest vein may be much greater than some investors think.
The actual amount of increase will depend on the grades and distribution of the gold but again I am highlighting the increased significance of widening the pit.
The gold you add is well beyond just the ounces in the vein you have just discovered, you can add gold below the limits of the original pit design.
It’s not just the width we may extend. There is potential to increase the length as well. Then you amplify the potential increase.
Looking at the diag below, extending the pit to include the eastern vein, will probably widen it considerably to include likely deeper extensions of this eastern vein.
That widening should capture the shallow parts of the next shale horizon further to the east. If this contains even much lower grade gold, it also adds ounces.
We can’t expect anything like a 4 fold increase in gold though even if we double the width because we can not assume anything like uniform distribution of gold.
The area between the existing resource and the eastern vein may be mostly unmineralised.
Time and deeper drilling will tell.
Also it appears likely the two separate pits may be joined to make one larger pit depending on pending results for the length extensions of the eastern vein to the south.

Not much is being discussed here about in fill drilling.
There are a lot of gaps in the resource especially at depth which have a pretty good chance of being filled to some degree with infill drilling.
Take a look at the cross and long sections in previous announcements to see the gaps.
Much more gold has been defined by trenching and shallow drilling than deeper drilling so it appears that the gold is concentrated near the surface but the reality is much more likely to be that continued in fill drilling will define much more gold below the shallow areas and fill in a lot of those deeper gaps.
This resource can grow very significantly with infill drilling alone which was also highlighted in the latest announcement with a section of new vein found on surface by infill trenching. Drilling is likely to have missed much more gold than the trenching on surface.

If infill drilling increases the contained gold in the existing pit by 20% (and the cross and long sections show potential for better) and the width and depth (but not length) are also increased 20% (looks highly likely with the new eastern vein), then the contained gold could be increased by much more than 40%.
I don’t know what the final outcome will be but I can see how easily a large increase in jorc resource can occur.
Our exploration map showing mineralised veins shows a very large potential to do much better than a 20-30% increase in area of the pit and to add other pits.
I see very large potential and strong likelihood of very significant (and multiple) resource upgrades to increase the fundamental value.
…and we still sit at a heavy 50% discount to value according to the scoping study on the now outdated jorc resource.
We have been in a long gold sector bear market which might now be over.
In a normal market we may be trading at a premium to scoping study value to reflect the very strong exploration upside.
In a gold bull market where would we trade?
We may be due for this long consolidation in POG to end and the long term uptrend to resume.
A resumed gold bull may not be far off especially considering the very strong bounce in many of the producers.