Guys, IMHO this announcement reeks of desperation to get the share price up more than anything else. I am familiar with the mineralisation at Mineral Hill, and the devil in this announcement is in the details. Why are they leading the announcement with a hole that was drilled nearly four years ago? Worse than that, this hole was drilled for metallurgical purposes directly down dip. So while the intersections look appealing, true widths are probably less than 1 metre, and likely closer to half a metre. Where are the equivalent high grade intersections in the holes that aren't directly down dip?
Secondly, anyone who has ever been involved in underground mine geology knows that channel or face samples need to be taken with a grain of salt. Channel samples are almost never used in resource estimates (of the JORC-compliant variety) because sampling biases are extremely high and the samples are not considered representative. To make it worse, they have reported wall samples directly along strike. At least face samples, which are taken across the active development face as it progresses, give an indication of ore body true width. So there is actually no new information that can be used to upgrade the resource.
I would suggest you won't see a resource estimate update anytime soon because the grade may be high but the tonnage will be very low. Very narrow, high grade lodes can be mined where there is a long strike length, but to me it looks like the limited tonnes/ounces per vertical metre will limit G lode to a break-even prospect at best.
KBL Price at posting:
1.6¢ Sentiment: None Disclosure: Not Held
