Dawes Point Newsletter 101017

Recently there has been a number of posts in which people attempt to calculate a possible resource at Purdy's (well in advance of having enough actual data to do so - optimists of course do not require a whole lot of data...) However today someone who knows how to assess a mineral deposit after doing it for decades published a simple method for calculating the potential for a congo gold deposit at Purdy's.

An extract below from Barry Dawes latest newsletter.  Dawes Point #70  - http://www.mpsecurities.com.au/the-rise-of-the-small-cap-resources-stocks/
published today.

Barry has been a stock broker concentrating on resources for more than 30 years and is also a geologist by training. His newsletter is a good read as he is what i can only describe as an ultra-bull for the Australian minerals sector. Anyway, about two thirds of the way down his latest newsletter he gives the Pilbara congo gold a review and discusses Purdy's as follows:

"The potential size of these deposits is without peer in Australia.

Trying to put together a target size is very difficult.
If the 8km strike length at Purdy’s Reward is continuous as the metal detector fossickers’ track suggest and if the conglomerate is at least 5m thick (most up are up to 20m) and if it continues for at least 1000m down dip (as indicated by the cross section above) then a large volume of 40million m³ is generated.
If the grades are 10g/m³ (say 5g/t @ a Specific Gravity of 2.0) then 13moz would be a reasonable target."
He then goes on to calculate potential deposit size in a table based on varied parameters using a simple method and assumptions. This is basically an academic exercise, although if you read the whole section on Pilbara congo gold you will see he is alerting his readers to the potential, because the potential, in his view, is very large.