I re-read the 28th July announcement. Normally, I don't really look at the Appendix. Drilling results will be very interesting on Line 11.
page 2 - "The establishment of small-scale operations will enable the advancement of the larger resource areas to be progressed sustainably supported by future, internal cashflows."
page 2 - "The Exploration Target comprises 62 3D volumes of target zones that are expected to host mineralisation. Volumes have been generated utilising drilling data, soil geochemistry, rock chip samples and geophysical Direct Current Induced Polarisation (DCIP) anomalies."
page 10 - Recent Exploration Data (heading) "In 2022, Variscan reported the results of a geophysical survey using DCIP and Electrical Resistivity Tomography (ERT) methods comprising of 12 lines for a total of 17.6 kilometres over the Buenahora Exploration Licence. The survey identified multiple, new, intense chargeable anomalies indicating potential zones of high-grade mineralisation." page 11 - "Data from the float (grab) sampling, underground channel sampling has been excluded from the calculation of the Exploration Target." I think this relates to Recent Exploration Data only as noted on page 10.
It sounds to me like Line 11 has been included in the Exploration Target.
page 23 states that "The geophysical data (DCIP Lines) have delineated multiple anomalies which have been used to generate target volumes. IP line geophysics does not always provide sulphide rich anomalies and other geological features and even water can present as an anomaly, although it is understood the tonnes derived from these volumes have been significantly reduced (by 79% and 90%) to provide a more realistic tonnage. Furthermore, there is a bias towards anomalous chargeability results being more prevalent by galena rather than sphalerite. The deposit has a much higher sphalerite abundance than galena, reflected in the Zn and Pb grades. There is, therefore, a possibility the anomalies could be larger than those interpreted, thus potentially underestimating the volumes."
I had a look at Appendix 3 on page 26, and it mentions Domain 11, not sure if this is Line 11. Maybe not, as Line 11 should only have one data point being the IP data.
VAR Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
