99plonkoThe current resource was defined around and under an...

99plonko

The current resource was defined around and under an area which has a surface expression of a combined 726ms of mineralised veins. It also contains non mineralised or low grade veins.
No doubt many of these veins vary in depth and more importantly there are many veins which do not outcrop that are included in the resource that were found through drilling.
With the newly announced vein today, we do not yet know how deep it runs. We also do not know how many veins may be near it or under it but not outcropping that may yet be defined by drilling.
There is no reason that I can see to believe this section with such a high grade will not also have buried veins beneath it and be similar in depth to other veins outcropping in the jorc resource area. That may not be the case but I can be sure this has added very significant value and at the very least reinforces my original 8c target based on scoping study cash flow projections. Any mining losses that you may be worried about beyond what the scoping study has allowed for have been compensated for by today’s additional veins.
Wouldn’t you agree?
Even when we see the drill results, without the appropriate computer software, we can still only guess how many ounces this area will add.
We will just have to wait for this and future results to be included in an updated Jorc resource.
If you don't like having a stab at it, just assume there is negligible gold and wait for the resource upgrade.
I won't be waiting and I am happy to make an educated guess and amend it as I see more information.
If there are no buried veins in the vicinity and this vein turns out to be very shallow, I will change my view on the potential increase to the resource of today’s results.
I can rest assured that based on the current jorc and with likely additions of today’s reported veins that the scoping study estimates of cash flow will prove conservative. Therefore until the sp gets to that sort of valuation (8c), I don't need to worry about just how much the resource will grow by.
If we trade at 8c then it becomes more of an issue in determining how much upside might be left from 8c.
Until then I will sit back and watch this grow knowing I will be increasing my target probably before it reaches my initial target of 8c.
For now I see good reason to believe that I will be raising my target price to 11c before we see 8c.