Doing my research.., page-4

Hi Chris and BJ
Been a bit busy to follow up on this - and I'm no expert - but here's how I see it (real geologists welcome to correct me!!!!):
Drill results are split, so that repeat sampling can be done.  The first sample/assay carried out by TYK (and most other explorers)  is a 4 metre composite sample.  That is - they are only testing small samples drawn at intervals 4 metres apart.  The samples are averaged to give a "composite" result.  ie they haven't processed everything that came out of the hole - just little bits, 4 m apart. There is some tricky weighting that goes into the calculation to try and make it as close to reality as possible - but it's not entirely accurate.  However it is relatively quick - and across a range of drill holes you do get a pretty good feel for whether there is something worthwhile in your target or not.
4 metre composite samples are less accurate when the gold is in coarse grains and unevenly distributed.  If one or two of the samples hit a particulary "rich" patch then that will throw out the averages and give a false high reading.  Of course - the reverse is true too.  If your samples mostly  miss the "rich" bits then the average will NOT reveal the nuggety goodness that lies within.
Of course when you actually do mine - if you have picked the right zone - you crush the lot and retrieve all (well - most) of the gold that's actually there and then you can discover that your actual retrieval is significantly higher than your drill results predicted.  I understand that was the case in much of the Wattle Dam mining, not far from Trapdoor, when Joe Houldsworth was the boss there.

Here is an interesting example from Mali in West Africa.  Bulk sampling indicated that actual retrieval would be 76%- 94% than higher composite drill sampling had predicted:
http://africangoldgroup.com/index.p...-kobada-gold-project&catid=68:2014&Itemid=191
That's NOT to say that Redback will be the same situation - but the latest results announcement confirms that the Redback site contains coarse gold and that this will require more careful assay technique and analysis.
So - as a follow up to the 4 metre composite sample they have now analysed one metre samples - far more accurate.  The one metre results show that the single extremely high result from the 4 metre composite sample was a false reading.  No big surprise there really, and no big boo hoo in my view.  My comment at the time was that TYK are probably more interested in the fact that Redback shows consistently high grade results across almost every hole drilled.
The one metre samples confirm that 14 out of 17 holes have good to very good results.  That's far more useful than a single excellent result.  And the gold is not too far down - indicating relatively cheap recovery - and the deposit is open along strke to the North...
Which is why the current follow up drilling is important.  It will start to indicate the potential length of the deposit - which of course will determine the total amount of high grade gold available.
For my money - and I've only invested funds I can afford to lose - it's looking good.
You don't get a sure thing in mining - let alone in a stock that sits at 0.003  lol.  But hey - that's where the high risk/high return thing comes in....
How high could it go?  Oooohh - I dont feel able to speculate.  It really is a function of:
- whether they prove up an economic retrievable resource
- the size of the resource
- the recovery costs
- their financing and debt situation
- the number of shares on issue, and options in play.
- the gold price at the time
- the market's assessment of all of the above
- general market conditions
- solar flare activity; the predictions of Nostradamus; goat entrail patterns and similar Chartist activity.
lol
The only one of those we know is the number of shares on issue - which is a crapload.
But hey - that's a large part of why they are absolutely dirt cheap, and if Managing Director Joe H is right - and he must feel confident because he just bought more shares - TYK will still be a deliciously profitable buy at 0.003 with multi-bagger returns.
Just don't forget that's it's still an IF, and that I'm no expert, and the only thing I write that I would regard as advice is: it's fine to be optimistic guys - but don't bet the farm....
Still - good luck to us all !!!!
Cheers
Dave