PRX 0.00% 0.3¢ prodigy gold nl

how many ounces, page-13

  1. 13,807 Posts.
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    "Just to be different, I'll go with a 8-9g/t head grade, lower than expected as after seeing gold in the surrounding sediments they may decide to take more material than originally ore blocked, with potential to dilute the overall grade."

    That's a good point FMX and one which I have also thought about.
    It is probably already applicable to GH as that resource estimate is based more on drilling than surface sampling and the assayed wide drilling intercepts should already account for both gold in quartz and lower grade gold in surrounding rock. That resource estimate has a grade of 16g/t overall but 45g/t for the higher grade "core". So the dilution you talk about should be already factored in for GH giving a 16g/t grade for quartz plus surrounding mineralised rock combined.
    However I would agree that for the bulk of the resource this will be a larger variable.
    There is a positive trade off either way.
    The Western limb is a good example. If the dilution is kept minimal to increase grade as I discussed earlier then we get the higher head grade with more ounces/profit per year for the same throughput but the overall contained ounces are unchanged.
    If however there is enough gold in surrounding rock (not just at GH) then they might mine greater widths to capture this gold. While this might bring the head grade back down towards 10g/t, it would possibly lead to an increase in resource ounces and mine life as I believe the current resource is modelled on gold in the quartz only (except for at GH).
    In any case despite understanding your point, I will stick with my expectation of higher head grades because I have seen no evidence of significant enough gold in surrounding rock (other than at GH) to justify increasing mining widths to capture gold in surrounding rock. In fact we are seeing the opposite with trial mining aiming to reduce mining widths outside of the GH area.
    The reality might even be better than in my earlier post for the following reason;
    If you have a 20cm vein at 50g/t and dilute to 1m, you get 10g/t diluted head grade. Reduce to 0.5m mining width and you get 20g/t. however, you still have 15cm of "waste" rock either side of the 50g/t quartz. What if this rock is not barren but it contains 5g/t gold? Your diluted head grade now will be better than 20g/t which assumed no gold outside of the quartz. Rather than reducing mined head grade, gold in surrounding rock might be more likely to increase head grade instead.
 
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