It must be pointed out that although bulk testing and metallurgical review both increased the overall grades above average 1 Kg sample fire assays, at this point we have not utilised any factoring to increase calculated grades. Our studies have shown grade increases in excess of 100% from the bulk testing.
It is also interesting to point out that statistical studies carried out by GMA and by Gamble (1987) gave even greater grade increases between face / truck samples versus mill recoveries.
The grades utilised in this review are the actual assay results where available or assigned backgrounds as per our tests and outlined on page 5 (Grade Review).
Based upon historical data it is not unreasonable that the potential recovered grades may be twice that outlined in this report.
...... further on page 8 ........ we have a full mill production history from the archival records which provides detailed average annual recovered grades
.......... further on page 9 ....... it must be pointed out that the mineralisation style at the Morning Star is very well controlled and understood. Its continuity and predictability allows for a high level of confidence with respect to position and size of the mineralised body ........... Conversely, the nature of the coarse gold distribution will always make grade definition more difficult.
...............
NOTE:
When a comparison of assays (grades recorded) versus mill production records (grade recovered) was carried out for the years 1934 to 1939 for the Burns, Whitelaw, Campbells, WHH and BrnD76 stopes the following was observed:
Average sample assay range from stopes: .......................
6.09 to 12.4 g/t Au.
Average mill recovered grade 1934-39: .............. 22.1 to 67.7 g/t Au.
Grade Correction Factor: .................................... ~ 350% to 540%
In this resource estimate - Ave. Grade: ............... 6.33 g/t
Grade Factoring -- Potential Grade: ............... 22.1 to 34.2 g/t Au
Grade factoring has been used in recent Australian public reporting of reserves / resources.
There is no doubt that the application of grade factoring would greatly affect the value and viability of this project.
MCO Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
