Quotes from the NAGs Quarterly Report used below ...
It is the similarity in the geological formations, between Fosterville & Nags, that is exciting, rather than the nearology.
"The Swan Zone (Fosterville) at 30 June 2017 had a Mineral Reserve ... of 532,000 ounces of gold at an amazing average 58.8 g/t (1.9 ounces per tonne) cut grade and is completely open at depth."
I believe the uncut grade is about 70g/T & that this reserve is in an area only 50mx 50mx 50m (approx). This at current depth, there is a lot more yet to be drilled, that will continue to increase the reserve as they go down.
"Gold reserves at Fosterville increased by over 500,000 ounces in the six months to 30 June 2017 and are expected to continue to increase dramatically in future year".
They know the gold goes down to 5.7km. They are currently down about 1km, so how much more is there - down to 5.7km. Answer - they don't know, its already yielded about 1m oz & they have about 1m current Reserves, so its likely to be many more millions of oz.
"The Fosterville Mine, the Lockington Deposit and the Nagambie Mine are all antimony-arsenic-associated, gold-in-sediments (silicified sandstones and siltstones) deposits formed at the same geological time .... They are very different from the traditional Victorian nuggetty
gold-in-quartz-veins deposits such as the Bendigo and Ballarat mines."
The nearology to Fostervolle is not the main key; the similarity of geological formations is.
