The Au is largely concentrated in a black shale unit that is hosted by quartz porphyry. Figure 5 shows the geological map with spatially limited quartz porphyry evident. The thickest zone of the quartz porphyry - and assuming therefore the thickest shale occurrence - is coincident with the known Au prospects that outcrop along <100m strike. There doesn't appear to be much potential extension to the host unit so unless there is a second, larger mineralised structure that does not rely on the shale-porphyry sequence as a host then the resource potential is not large. Back of the envelope calculations could could see it anywhere between 50-250koz, but I would lean more to the lower half of that estimate.
Certainly nice grades and thicknesses and I'll eagerly await to see results as they arrive but I'd be wary about paying too high a price for what could be a small resource.
ARS Price at posting:
7.2¢ Sentiment: Hold Disclosure: Not Held
