re: Ann: Ballarat Gold Project - Mine Plan Re... Hmmmm. No eldorado but the bottome line is that mining should be profitable even at historic grades at current prices.
Snowden:
"CGT report a marginal cut-off grade at 3 g/t Au based on a gold price of $1,400/oz, costs (incl. mining and processing) of $120/t and mill recovery of 90%. Snowden concurs with this figure and notes a cut-off of 2.8 g/t Au with a gold price of $1,500/oz. A breakeven cut-off grade of 3.5 g/t Au based on a gold price of $1,500/oz, costs (incl. mining, processing and admin) of $150/t and mill recovery of 90% is estimated."
I was sort of correct in prattling about statistical confidences not tallying with the drill results. I wondered about mathematical and lab errors being a potential cause and this seems to have been confirmed abd expanded by the Snowden report.
Snowden:
" A number of issues contribute to sampling error.
Poor core recovery is the prevailing issue and leads to either (1) loss of low-grade material and upgrading of an intersection, or (2) loss of higher grade material, including liberated gold, and under-calling of grade. In addition, poor core quality leads to sub-optimal core cutting. Core loss is highest in faulted and fractured and/or altered rocks.
Snowden does not consider these issues to be fatal per se, but some improvements may be possible, including whole core interval sampling, optimised sample protocols and a quantitative assessment of core quality/recovery impact.
The data is of appropriate quality to support a Mineral Resource estimate."
I am disappointed that LGL's lessons were not fully learned and that a statistical qualification of results was did not happen. Core losses don't seem to swing much in the other direction (grade underestimation) at Ballarat for some reason.
That said there are plenty of "jewellery shops" to be found down this pit. The JORC estimate table includes a significant variation in expected grades (5 - 12 g/t for Mako) but in any case it is all profitable given that establishment costs are sunk. As for SP dilution though ................
Snowden confirms the drill for structure and drive for grade adage for this play.
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re: Ann: Ballarat Gold Project - Mine Plan Re... Hmmmm. No...
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