one of those huge posts

Wow what a stock. I probably haven’t been doing this as long as others but in the time that I have been speculating on small cap resource stock I have never seen anything along these lines.

Looks like my call from a week ago, when ICG was a very different stock worked out.

Looking at the posts over the past week I’m not sure how this has managed to turn into a discussion of “Philosophy of trading and speculating”. I know……. I hope everyone is aware that this is not a sure thing. If there is a stock out there that has as much upside apart from maybe RDM which I hold as well I would like to ask the one line negatives to let me know about these and post positive things about these stocks rather than jumping on these threads and stating the obvious.

Very pleased with my decision to go hard and long with this stock.

Over the past week I have extracted a number of observations from both the announcements made by ICG and their Condor days along with using some of the data posted onto HC by other users (Good Work). Along with the observations I have made I have contacted some mates who have had a lot more experience with these types of systems than I do.
In regards to the rumour that SFR are in the process of acquiring tenements in the same province as ICG should in itself be taken as a big positive. The potential of the company picking up some ground on the other side of the fence or even some 10s of kilometres away would be a bonus.
Notwithstanding the pretentious name of this thread bellow I present facts and my opinions and this should not be used as investment advice and I hope everyone is aware that you should always DYOR.

I hope this post will further push for productive discussion and create an incompatible environment for both the negative and positive ramping where unsearched, unreferenced one liners stir up unwarranted discussion of risks and bla bla bla. If you lose money it’s because of you investment decisions. If you make money it’s because of your investment decisions.

Before I dive into the geology I would like to point out that as an exploration geologist this project would be a pleasure and a privilege to work on for much the same reasons as why it is stirring up the investment community. Most geologists just like most investors will be part of companies that will drill hole after hole on prospect after prospect with countless soil, stream, EM, IP and other surveys in between with very little potential for a world class discovery.

Geology

The relationships between Porphyry deposits, High sulphidation epithermal and Low sulphidation type epithermal deposits are described and explored in countless papers by the likes of Franco Pirjano and the undisputed king of Porphyry deposits Roger Sillitoe.

The generalised relationship between these 3 types of deposit types is that porphyry deposits are located at the lowest crustal depth followed by high sulphidation systems which sit above porphyry deposits and low sulphidation deposits which are distal and in most cases structurally controlled representations of an active hydrothermal system.
Good examples of the discovery of porphyries by drilling under high sulphidation (which themselves are nice to find. Yanacocha is a high suphidation system) in recent times has been the Wafi-Golpu in PNG and Veliki Krvelji systems in Serbia.

I have not come across any indication of low sulphidation epithermals on ICG’s project but as an example the Waihi deposit is of this type.

These relationships however get more complicated with multiple intrusions rising to the surface, crystallising and expelling their fluid content resulting in what can appear to be multiply overprinting systems. So a high sulphidation system can be overprinted with porphyry mineralisation and then latter by high sulphidation and so on. For example the Henderson porphyry has 11 mineralising and overprinting stocks.

The geological relationships at Chanape to me suggest that what we are seeing at surface are the lower to mid reaches of a high sulphidation system.

This observation if correct bodes well for the discovery of a large Porphyry deposit and associate High sulphidation ore body with the latter being the more likely alternative at this early stage.

The discovery thus far of 3 different generations of intrusive rocks with the last being found to carry mineralisation does not say that the rest will not be found to carry mineralisation.

The breccia’s have intruded Andesite’s which are very competent rocks which take a bit of energy to blow up. Where veins have formed in the andesite at Chanape they have been effective fluid conjugates and as a result carry high grades.

So the possibility remains on the tenement for the of high grade structurally controlled mineralisation adding significantly to the overall resource perhaps not so much in regards to tons but definitely in regards to grade.
The presence of high Pb-Zn values for a porphyry environment suggests that given the classical zonation models the mineralisation which has been encountered thus far is of a distal nature. At this point it is important to note that these types of breccias ( the ones drilled so far) are in most cases very very late stage events which occur at a time at which the mineralising system has for the most part died.
Coupling this observation of a distal characterization to the mineralisation on surface and given that the breccia’s are in themselves are diffuse moderately concentrating fluid conjugates one can come to the tentative conclusion that the mineralising fluid was both rich and dropped out moist of its metal contents at a potentially deeper level.

The vuggy silica alteration is of a very high importance as the greatest portion of Yanacocha’s gold is hosted in this type of rock which is indicative of a highly acidic fluid. Vuggy silica is an alteration type almost always seen in high sulphidation systems. Below are some paraphrased extracts from “Gigant metal Deposits” by P. Laznicka (chapter 6 for theose that want to chase this up) in support of this statement as well as some which I hope will quell the paranoia regarding the low concentrations of sulphides intersected. It is unfortunately no guarantee of good grades but nevertheless a solid base upon which to speculate. I did not want to post the exert themselves as I was unsure of the legal copyright ramifications.

This first exert is regarding a placer deposit formed from the erosion of the Yanacocha ore bodies whereby the importance of Cu sulphides and Py is evident.
The first paraphrased exert says that the ore of the La Quinua ore body has gold hosted within Fe-hydroxides after Py and Cu sulphides.

The importance of the vuggy silica alteration and black pyrite are as follows. High sulphidation systems often contain fine grained gold disseminated in equally fine grained pyrite where the pyrite can look like black mud. Gold may also reside within the distinctive Vuggy silica without VISIBLE SULPHIDES!!!!.The presence of this type of pyrite is also associated with appreciable Ag grades.
The bulk mined heap leach ore (80% of the Pierina ore)contains no sulphides and the gold is either present within Fe-hydroxides or remains locked in the silica.

At Yanacocha the oxidised ore is inconspicuous and the invisible finely dispersed gold is in residiual limonite or as free gold in granular or vuggy silica.

ICG’s announcement from the 2nd of August re sulphides

On page 3 there is a photograph showing and describing the breccia fill as black silica containing extremely fine Py as mentioned in the extract above. So given that the Py is not only present as the nice shiny stuff having a look at the core tray that the company presented in the porphyry discovery ann could very well be more interesting than first perceived. Alternatively the black mineral could very well be tourmaline which itself appears to conform well with gold grades.

ICG’s announcement from the 18th of September re sulphides

Page 3 contains a statement by the MD saying that sulphides have been intersected in concentrations of up to 5% in the previous drill holes.

Compared to the recent porphyry intersection which contains between 1 and 2% up to 30% total sulphides it would appear that the system is improving.

I hope to add to these observations as time goes on but as a negative to counterweight what I have posted above I point out that this is a Cainozoic system meaning that having the start of what I interpret as being the High sulphidation part of the system ( could be wrong, wouldn’t be the first time)this deep and not having the time to erode the overlaying rock would suggest that this would be a deep system.

To those that find this being the end of the world I refer to the Wafi-Golpu system in PNG. Newmont is planning on mining it and the mineralisation starts at 1.5 km down, so depth is relative.

The important points which make me speculate and hold for results are.

Black silica very fine grained Py present in drilling which hosts Au in other deposits in Peru.

The same goes for the vuggy silica and the relatively low concentrations of Sulphides.

Sulphides increasing with depth.

Initial intersection of 120m could go much further. They had no choice but to keep going. You never terminated holes in mineralisation.

IP anomalies confirmed as being caused by sulphides.

And finally I would like to see the following announcements in the future.

Grade naturally, realistically 1 g/t plus minus 0.2 g/t

Extension to the initial 120 m intersect

Comparable grade and width bellow breccia’s 11 and 10.

I hope no one considers the above to be ramping as these are the facts. There are no guarantees as to anything- grade, tonnage, metallurgy.

I continue to hold as it suits my investment style and I like the upside risk ratio.

Each to their own and DYOR

Good luck to all.