re: Ann: Co-O Mine Conceptual Exploration Tar... crackpot,GD's...

re: Ann: Co-O Mine Conceptual Exploration Tar... crackpot,

GD's original conceptual model was based on estimates using the known length of strike (at that time) x an aggregate width across strike (by adding the average widths of all known veins across strike) x depth x grade (10g/t as mean).

The estimate ranged from 3m oz on the low side to 10m oz on the high side with an assumed likely target of c. 7m oz.

As Jim has said, what the announcement was saying was that the new JORC resource, plus gold already extracted, comes to 2.4m oz which is already approaching the low case estimate arrived at in the original model on 18 Jan 2010.

Since then, MML has extended the strike length another 100m and has drilled further intercepts below the 500m level - so they are already expanding towards the mid-case conceptual estimate of c. 7m oz.

As they drill down ever deeper the overall resource size becomes larger (ie at -750m the conceptual resource size rises to a range of 4.8m oz to 9.6m oz depending on the aggregate vein width of 5m, 8m or 10m).

At -1000m the range would become 6m oz to 12m oz!

(In answer to hanktanson's query a few days ago:)

Because the veins are actually better visualised as vertical 'sheets' or 'curtains' of gold mineralisation formed by the upward flow of boiling fluids from deep underground. The cost of proving up a bigger and bigger resource/reserve from surface becomes ever more expensive due to the long drilling lengths required in order to hit what are relatively narrow intercepts of mineralisation. So MML decided to focus their ongoing drilling of known veins from underground as they advanced their stope development with production.

This is in contrast with the more commonly known disseminated porphyry systems which are usually proved up by surface drilling before commencement of production. Once we get more news from Bananghilig we will see that resource is being proved up in the more conventional way - and will probably find more acceptance and recognition by the market.
CPDLC