On the back of an envelope (and way to early to call)

Call me a Christmas Cracker.

Let’s have a little Christmas fun and do some calculations on the back of an envelope for a Milkyway pit optimisation (and take it with a very large pinch of salt and a swig of eggnog or tequila and lemon).

4 exploration holes over 200 to 300 metre length could be indicating the ore body may be 64 to 89 metres thick (this won't be the true width, however the Rock Doctors were aiming to hit the ore body perpendicular). Say there is a continuation of the ore body of a depth of 100 metres.

Very crudely, say we are looking at an ore body 300m x 50m x 100m = 1.5 million cubic metres. Which is within 200 metres of the surface (open pits in the area have a max depth of circa 200m).

Say the mineralised porphyry weighs 2.7t to 3t per cubic metre. 1.5 million cubic metres x 2.7t to 3t equals 4.05mt to 4.5mt

If the block (300x50x100) averages 2.0g/t, 1.5g/t, 1.0g/t this equates to 270,000-300,000 ounces, 202,500-225,000 ounces and 135,000-150,000 ounces respectively.

Recovery rate say 90%

ASIC say AUD1100 to AUD1200

POG say AUD1400 to AUD1500

Dewater the existing pit and scale back the Southwest wall.

WOOHOO! Got it all worked out from the comfort of my armchair.

I know not to count chickens before they hatch, however, never look a gift horse in the mouth. Hopefully Milkyway will be a champion for the RMS stable. You can play around with these figures for hours on end.

With infill drilling scheduled for January 2016, this child is wishing for a very early Christmas in 2016. Success with step out drilling and O’Meara in February will be a bonus.

Cheers to all.

Merry Christmas and have a safe new year.