OK....so the two holes are pretty darn close to each other, that is a given.
BUT...for me, the biggest issue with the first result was that most of te gold was in a single 1 m intersection 9over 600 g/t), and my concern was that this was just a "fluke" and an isolated nugget effect.
The new result is VERY significant IMO. Although the two drill holes are "close", the fact we have more visual free gold in the new hole, confirms this was no "fluke" and that there really is a proper VERY high grade pod of god down there. Dont be mistaken, this WILL be mined, even if the tonnage is very low and it is toll treated somewhere else.
How big the tonnage is is the question, but lets just say this thing is 3 m wide and averages 215 g/t over that 3 m intersection (as per the 3 m at 215 g/t for DORC223) and it is 50 m long x 50 m deep (all guesses...I have no idea...).
Assuming a SG of 3, this gives 22,500 tonnes of ore (tiny) but at 215 g/t, it contains $259 million smackeroos of gold at $1500/oz. Lets assume something rediculous like $2000 per tonne to mine and process......(give me the contract...)still leaves $214 million in net revenue, or about $1.42 per share.....
Now these may be rediculous assumptions and may never be achieved, but it goes to show how such huge grades, if continuous over even very small areas, can be VERY profitable.
CDU Price at posting:
$3.18 Sentiment: Buy Disclosure: Held
