DRE 8.33% 2.2¢ dreadnought resources ltd

Ann: Redback Prospect High Grade Gold Results, page-13

  1. 7,477 Posts.
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    Looking at the long section data, the most critical thing now is the drillhole at 7350mN, 250mRL, because this adds strike length to the orebody, which in turn increases the ounces per vertical metre (OVM) which is critical in underground mines because underground infrastructure is expensive. The OVM at the moment assuming an average grade of the HG shoots is 60gm (2oz) and a strike length of 200m is 400 OVM. Around 1000 OVM is a really nice UG mine, but if we can toll treat the dirt that means we can mine much lower grades at a profit.
    So if the drillhole at 7350mN, 250mRL comes in with the goods that's another 50m added to the strike and another 100 OVM to give us 500 OVM. With more drilling another 100m added to the strike gives us 700 OVM (assuming grades of 60gm).
    OVM makes it real easy to define the resource as well. If the strike length is 200m, the vertical extent of the ore shoots should be 3,4,5 x multiples of the strike length.
    800m vertical extent (4 x 200m strike length) x 400 OVM = 320,000oz
    1000m vertical extent (4 x 250m strike length) x 500 OVM = 500,000oz
    It's nice playing with those sorts of numbers. Pretty exciting stuff. All IMO, of course.
    Last edited by Midnight26: 09/12/14
 
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