Your understanding of how drill intercepts work is an interesting take....Taking an already interval-averaged gold grade and then interval-averaging it again to give a lower and incorrect per-meter average grade is generally (definitely) not the industry norm in my experience. 3.5m @ 8.33g/t Au is already the average and the gram-per-meter gold calculation (grade x length) on that interval is ~29.16 gram-meters. Your out of nowhere recalculation of the intercept to an average of 2.38g/t ("~2.4") Au per meter, for a total of 8.33 gram-meters over the 3.5m interval is plain wrong.
FG1 state that the intercepts are reported as length-weighted averages, meaning that the typically shorter, higher grade sub-intervals are already somewhat factored for. This doesn't always remove the smearing effect that you allude to but is the industry norm used to reduce it. Best practice is to combine the length-weighted averaging method with true width lengths but most exploration companies stick to the down hole intercept lengths (particularly in the early stages) for various reasons. From a DD perspective it is useful to know the grades of both the wider interval lengths as well as the higher-grade sub-intervals and for an exploration company it is one of the common ways to provide "balanced reporting".
At early exploration stages companies will often select a geologically reasonable cut-off grade that reflects mineralised zone boundaries, not necessarily the economically mineable width - that comes later after the dreaded feasibility studies. I've completed my own DD on multiple eastern Australian gold exploration companies and a cut-off of 0.3g/t Au is not unusual, some are using a 0.1g/t Au lower cut-off. Nothing unusual here.
As mentioned by some other members, what's low grade and what's high grade is subjective, but a rough guide is (DYOR):
Open Pit:
Low grade: 0 - 0.5 g/t Au
Average grade: 0.5 -1.5 g/t Au
High grade: 1.5 + g/t Au
Underground:
Low grade: 0 - 5 g/t Au
Average grade: 5 - 8 g/t Au
High grade: 8+ g/t Au
"Bonanza" grade": 1 oz/t (31.1 g/t Au)
DC
- Forums
- ASX - By Stock
- Ann: More High-Grade Gold at Trafalgar Prospect, NE Tasmania
Your understanding of how drill intercepts work is an...
-
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add FG1 (ASX) to my watchlist
|
|||||
Last
2.9¢ |
Change
0.004(16.0%) |
Mkt cap ! $7.392M |
Open | High | Low | Value | Volume |
2.5¢ | 2.9¢ | 2.5¢ | $18.23K | 682.8K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 148 | 2.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.9¢ | 377035 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 148 | 0.028 |
1 | 40401 | 0.026 |
1 | 599227 | 0.025 |
1 | 70000 | 0.024 |
1 | 150000 | 0.022 |
Price($) | Vol. | No. |
---|---|---|
0.029 | 377035 | 4 |
0.030 | 304263 | 2 |
0.031 | 210000 | 2 |
0.032 | 452861 | 3 |
0.033 | 270001 | 2 |
Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
FG1 (ASX) Chart |
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online