fundamentals

For quite a while now, with previous chart predictions coming up short, it seems that either the charts are wrong or the interpretaters are guessing incorrectly. Meanwhile there have been two anns in December from SLR and IGR that no one has made much comment about.

The SLR ann at Lorna Doone and Spinifax,

"Assay results included: 3.0 metres at 17.5 g/t Au (including 1.0 metre at 45.9 g/t Au); 1.5 metres at 36.2 g/t Au (including 1.0 metre at 50.6 g/t Au); 7.0 metres at 6.6 g/t Au (including 1.3 metres at 23.3 g/t Au); and 1.7 metres at 21.8 g/t Au (including 1.1 metres at 30.6 g/t Au)."

"Potential for 2 previously mined open pits to become one large open pit followed by an underground mine
Infill drilling planned followed by mining study
Project is outside of current base case production plan at Mount Monger."

If you look at the drill hole schematic it looks as if there could be a large medium grade deposit to add to the future feed stock extremely close to existing operations and mill. Almost 25,000 oz @2.5 g/t was mined from these 2 open pits earlier and looks to me an awful lot was left in the ground 10 years ago due to low POG at the time. Now 2.5 g/t from open pit can make for some lovely blending material when combined with high grade ore.

And speaking of some new high grade ore coming our way:

"MAIDEN ORE RESERVE FOR IMPERIAL DISCOVERY OF 43,000
OUNCES AT 6.6 G/T GOLD" Open Pit, fantastic!

And,

"Integra Mining Limited (ASX:IGR, Integra) is pleased to report a 75% increase to the Ore Reserves at the Majestic Project, including the Majestic and Imperial gold deposits. The Majestic Project Mineral Resource estimate (inclusive of Ore Reserves) is now 3 million tonnes at 2.9 g/t gold for a contained 280,000 ounces.

The Majestic Project Ore Reserves estimate is now 1.2 million tonnes at 3.7 g/t for 140,000 contained ounces from two open pits with a maiden open pit Ore Reserve estimate of 202,000 tonnes at 6.55 g/t gold for 43,000 ounces for the Imperial gold deposit." Open pit at 3.7 g/t is also pretty damn good.

And I don't believe that will be the last upgrade from Majestic that we will see. IGR has traditionally been very conservative when reporting Reserves as Chris Cairns is on the JORC Compliance Board. Further, Chris told me once that the silver credits at Majestic are significantly higher than at Salt Creek, where they pay for all Perth Mint smelting costs plus return a few grand a month to the company.

So, fundamentally, we are looking at a potentially huge increase in overall resource base close to the mills and offering a wide variety of blending options depending on POG. Once SLR combine the two geological data sets to look at the entire region as a whole, Mt Monger will become a major producing area. Once Murchison is bedded down I think we can expect a major push again at Mt Monger, Maxwells UG, and Majestic.

And then there's Aldiss patiently waiting.