So everyone was thinking there must have been something wrong with Ellendale/Blina because Burgandy chose not to excersize the option to acquire it.
Limited work was actually carried out by BDM....
"During their time operating the Ellendale Project, BDM conducted bulk sampling operations on the Blina Diamond Prospect. This work was carried out in a professional manner, but due to a limited number of sampling sites (two trenches), GIB does not consider the Blina Prospect has been tested for the high-grade trap site targets which were GIB’s exploration model. "
GIB’s believes that to properly test the Company’s ‘High-Grade Trap Site’ geological model at Blina would require approximately 100 sample sites to be bulk tested on the 7km long mining lease M04/467.
So two trenches sampled out of approx 100 sample size, thats a minuscule sample size when you think about it.... they didnt even look at the other prospects....
GIB is also seeking the grant of three mining license applications.... (these areas have greater geologocal certainty than Blina alluvial prospect)
GIB considers the Ellendale 9 Prospect area to have greater geological certainty than the Blina Alluvial Prospect, and so the Company will concentrate its focus on getting the E9 Prospect area assessed and permitted for mining, in priority to Blina at this time.
Very very interesting, great to see GIB now actually have a plan and look at tackling this project which previous operators had once combined M/C of over $690m
DYOR
GIB Price at posting:
4.5¢ Sentiment: None Disclosure: Held
