deep 1000m drilling to find higrade gold!

Hey Guys

Over the last 12-18 months I had been wondering why Mr Macnab was so keen to drill deep to find where the water table mixed with the volcanic magma. Assuming he was just trying to build up the gold resource by drilling and finding economic quantities of low grade large tonnage gold.

Ive stumbled on a bit of geological theory that I got from a mate, very interesting and very exciting. Explains a lot about Mr Macnab's thinking and why he has found so much gold in PNG for the world's biggest gold miners in Barrick Lihir and Newcrest!

Below are images from GOA's presos where Mr Macnab constantly refers back to the water table and base metal mixing zone.....

Again below

Now for the theory that is driving Mr Macnab's belief that Crater Mountain is a tonnage low grade gold deposit 5+million ounces similar to Porgera Hidden Valley etc!

This preso above explains the importance that water, especially salty water (nee salty watertable or even sea water) has in "transporting" or filtering through hot volcanic magma, collecting base metals (in our case Zn or Zinc, which explains Mr Macnab's excitement whenever he see Zinc in the drill cores) because along with the base metal, GOLD is also collected by the salty watertable water which as we all know is full of salty minerals and deposited in high grade concentrations as it rises back towards the surface of the ancient mineralisation as salty steam, depositing gold all the way up.

Hence the low grade high tonnage gold deposit is created by Mother Earth that Mr Macnab is now consistently drilling and building up the resource.

Read this below:

The saline water attracts the base metals because of the chloride in the sodium chloride is negatively charged, attracting the positively charged base metals and gold, then as it reaches the surface it turns to steam depositing millions (IMHO) of ounces of gold throughout Crater Mountain!

If you have a look at the diagram below that Gold Anomaly uses to explain to us shareholders where they have been drilling, it looks quite a bit like the classic text book description below it! :)

In this description lake water seeps deep into the hot porous rock, then collects the base metals and gold and disperses it throughout the mountain.

In our case with Crater Mountain, it is sea water that has done the job more effectively and efficiently, like it has done at the 28 million ounce Porgera Gold Mine and other large scale gold mines on Treasure Island (PNG)!

IMHO, we just need to let Mr Macnab drill out Crater Mountain and continue to build up a JORC resource before the 1000m drill rig commences. We will be pleasantly surprised with the results deep in our mountain!

And one other thing that we need to be aware of. As the price of gold has risen from $1100 per ounce in 2009 when Gold Aura merged with Mr Macnab's Anomaly Resources, to $1680 per ounce today, the cut off grade needed to make a gold mine profitable has also fallen by 30-50%!

A lower gold cut off grade means an automatic increase in JORC gold resource because more of it is economically viable and profitable to mine and sell!

With forecasts for Gold heading towards $1800 per ounce by end of 2012, we are set for a very exciting time.

Stay calm and if you can, pounce on a weak market while we still can!

Cheers Nectar