El Palmar Summary of possibilities

First thing I think people should do (if they haven't already) is watch the last two or three videos from Malcolm Norris. Yesterdays and the Noosa Conference replay from last week are good starts. vimeo.com/644640678 is the Noosa Link

A summary of the things he has said that are most important IMO:

Holes 1 through 6 all show mineralisation. The mineralisation is showing good correlation with the magnetic model. Hence, we can make some semi reliable projections on the volume of the deposit and possible grades. We can also look at similar deposits along the Touachi Fault to get a feel for what to expect.

There is evidence to suggest grade could improve with depth (but it won't matter if it doesn't) and typically grade wioll improve with depth and proximity to the heat source. I'm working on 0.7g/t gold equivalent for now with a conservative 3g/cm density but it is likely higher on both counts.

There are satellite deposits that are already 'discovered' and which will be drilled out in the New Year and which will add to volume.

They are attempting to get assays for 4,5 and 6 to us before Xmas but that will be down to the labs, as will the delivery of assays for the balance of 2 and all of hole 3 next week.

Now, the temperature map of the main deposit in cross section (similar principles apply to the plan view of the larger tenement where you can see the satellite deposits as well). The hot colours indicate the degree of magnetism and hence of mineralisation. Blue is cold and probably non-mineralised, yellow and orange are likely modestly mineralised, red and white are far more mineralised. If the model holds up as expected (and so far it has) then holes 7 and 8, and even hole 6 are going to have extensive intervals of good mineralisation. Holes 7 and 8 will possibly end deeper than 1200m and in mineralisation. Potentially some of the best mineralisation but time will tell.


The image below reinforces the intervals and grades achieved already and laid over the magnetic model, the grey shape in this instance. The sheer volume potential of the deposit, especially deeper, is highlighted by that big fat bottom on the magnetics.





Final image shows a comparison between the El Palmar magnetic model and the 2.66 Billion tonne Alpala deposit of Solgold further along the Touachi Fault.


These two images are drawn to a similar scale by the company in an attempt to assist people in seeing the potential here. El Palmar could well be larger than Alpala On the size of the deposit. It's very early days but working off the magnetic anomaly we have approximately a 700m diametre 1200m plus deep orebody. I think the final grade will be higher but working on 0.7g/t, the main cylindrical orebody is 460 Million cubic metres or round figures 1,400 Million tonnes of ore. 31.1035 g/troy oz for a total of 31 Million ounces of gold equiv, plus satellites, plus Bramaderos.

Play the extreme conservative/pessimistic case and call the orebody 500m diameter and 500m deep (pretty much what they have already drilled) at 0.7g/t that is still a 7 million ounce deposit at El Palmar.