Thanks for the geology #101 lesson HappyCats.
While still trying to get my head around what youve said,being completely unprofessional as there is no suggestion Balatindi is analgous with Productora.
Arnt our figures better than theirs,given we havent reached total depth yet?
Weve drilled down to 400 mtrs with no end in minerlaisation.
(some excerts not the whole article from dj carmichales)
Resource in-fill drilling at Productora has uncovered a new wide zone of mineralisation on
the western side of the main brecciated mineralised unit in the Central Lease area. The new
zone is thought to be a shallowly dipping brecciated Mantos horizon discovered in infill holes
that were designed to hit the main breccia zone at depth. However, at only 98m down hole
a 56m wide zone of mineralisation was intersected with a copper equivalent (Cu equiv.)
grade of 1.0% (Cu grade 0.6%), being consistent with the grades received previously in this
area.
The discovery of the new zone, if it proves to have lateral extent, is positive with regard to
any future operation at Productora. Being within 100m of the surface, the zone would
significantly reduce the strip ratio in an open pit and provide a very wide, bulk tonnage
mining block that would significantly improve the economics of accessing the deeper parts of
the main vertical breccia unit.
HCH have released a long section that clearly shows the distribution of grade interpreted
from the drilling results received to date. The long section is for the Central Lease area only
but we know from drilling that mineralisation extends at least an additional kilometre beyond
the Central Lease. Diamond drilling is also planned to extend the zone of known
mineralisation down dip to between 300m and 400m.
HCH have released the latest batch of drilling results from their Productora
IOCG-U project in Chile, which indicates a previously unknown thick brecciated
mantos horizon exists on the western side of the vertical breccia zone. This
alters the interpretation and has resulted in an increase in our tonnage
estimates. HCH are still on target for their first resource estimate by mid-year
2011. We re-iterate our Speculative Buy recommendation but have increased our
price target to $0.98 from $0.81 to reflect the results of the new drilling and
assumptions on depth extensions through continued diamond drilling.
HappyCats,looking at the map at Balatindi,weve only scratched the surface (no punn intended) of the central part of the anomaly,correct me if Im wrong.
We still have both the east and west wings together with the southern section to drill,extremely early days I know ,yet one cant help feel we have a strong case for a extremely robust IOCGU mine,given the scintillometer mapping results.
What grade of gold would we need to equal the above Cu grades HC?
Apologies in advance if my questions seem basic.
Raider
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