Ann: Iltani defines Orient West Exploration Target, page-15

Im certainly no Geo but I'm trying to work out how 'good' this is. Seems like market wasn't all that interested. Punched some data into Ol' ChatGPT:

To determine if an exploration result of 74 – 100 Mt @ 55 – 65 g/t Ag equivalent is good for a micro-cap mining company, several factors need to be considered:

Key Considerations

1. Grade: The silver equivalent grade of 55 – 65 grams per tonne (g/t) is a significant factor. Higher grades are generally more economically viable because they can produce more metal from each tonne of ore.

2. Tonnage: The range of 74 – 100 million tonnes (Mt) suggests a substantial volume of material, which can potentially translate into a large resource if the deposit is economically viable.

3. Market Context: The economic attractiveness of a deposit also depends on current metal prices, extraction costs, and market demand for silver and any other metals included in the silver equivalent calculation.

4. Geology and Location: The deposit's geology, ease of access, proximity to infrastructure, political stability of the region, and regulatory environment are crucial factors.

5. Company's Position: For a micro-cap company, a significant find like this could greatly enhance its valuation and attractiveness to investors, provided the company has the financial and technical capability to advance the project.

Evaluation

• Grade (55 – 65 g/t Ag Equivalent):
  • This is considered a moderate to good grade for silver. High-grade deposits (>100 g/t) are more desirable, but moderate grades can still be economically viable, especially with high tonnage.
• Tonnage (74 – 100 Mt):
  • This is a large volume of ore, which suggests a significant potential resource. For a micro-cap company, such a volume can be transformative.

Economic Potential

• Revenue Potential: Calculate the potential in-place value of the resource by multiplying the tonnage by the grade and current metal prices.
  • For simplicity, assuming an average grade of 60 g/t Ag equivalent and an average silver price of $20/ounce:
    • 1 tonne @ 60 g/t = 60 grams = 1.93 ounces.
    • Value per tonne = 1.93 ounces * $20/ounce = $38.60.
    • Potential in-place value for 74 – 100 Mt = 74,000,000 tonnes * $38.60 to 100,000,000 tonnes * $38.60 = $2.856 billion to $3.86 billion.
• Cost Considerations: The feasibility depends on extraction costs, including mining, processing, infrastructure, and regulatory compliance.