So with the results of the CIL test due, what are we thinking the market will say? Should the results be poor, unlikely, good, very likely, or very good, here is hoping. Poor in my mind would be less than 10 g/t from the intermediate zone, as the CIL will tell us what is the best we can achieve form the much talked about area of the mine.
At 10 g/t best, while still a good diluted grade, it will leave the SP where it is , IMO, as it would not be much more than what we are getting from our plant. A good grade would be between 14 and 16 g/t, I feel this is the most likely result as that would be a nice bump from what the plant is getting. If my guess is correct, 7 to 8 g/t then use the numbers from Troy, ~50 percent recovery then 14 to 16 g/t is where I would put my best guess at.
Anything above that would be very good as that would be a nice surprise but unlikely IMO. I know it is hard to estimate the grade from the intermediate zone as it is complex with more than one vein, pinching and swelling, but I think the geo's have had a good look at it so that is my take as well..
By the way, I believe that the plant would be getting around 7 to 8 g/t from the intermediate zone after dilution, I arrive at that number by taking what the geo's though the grade was and allowing for three times dilution, ~ 30 g/t by by 3 time dilution is 10 g/t head grade then 70 to 80 percent recovery.
The results will give the company plenty to think about, poor, might as well just keep going and try to increase throughput. Good then they need to work out how we are going to recover the "lost gold", CIL via toll treatment, concentrate the material by installing a ball mill and flotation plant then toll treat the concentrate.... Or concentrate the gold then melt the concentrate and separate out the gold, if we can.. There are more than one way to skin a cat... Should the results be very good,, plus 20 g/t,, they will really need to put there thinking caps on, but like I said, not very likely when dilution is taken into account. So what do we think.. ?? poor, SP will stay where it is, good with a plan, a little bump, very good with a plan,,,,, not going there....
OGX Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
