VI don’t entirely agree with you that there are plenty of big...

V
I don’t entirely agree with you that there are plenty of big mines in Burkina Faso. Some of the deposits I listed are mines while others are only deposits. Even the deposits are not what I would describe as big. Yes, some of these deposits are large in terms of their dimensions (some are kilometers in length) but for me the most important common feature of all of them is that they are low grade, Much larger deposits have been discovered in other Western African countries such as Mali.

No, I did not come across any deposits that had exciting drill results that were at all similar to the impressive GMR intersection of 57m at 23.3 g/t gold from 40m, including 8m at 131.8 g/t gold. Most of the intersections I came across were 1–2 g/t. The lack of similarity leads me to assume that the Balogo Netiana Shear Zone deposit is a very different type of deposit to what the other companies have discovered. It seems to me that where the other deposits are large continuous ore bodies the shear zone is a series of high concentrates ore bodies separated by ore-less rock. It’s the type of deposit that might lend itself to an underground mine, rather than to open cut mining. This inference lead me to the further idea which is that if this deposit is a vein system then it might also be a deep system and that additional deeper drilling will be required at some time in the future. These things are of course all suppositions on my part.

Absolutely, before we can compare JORC resources we need to have one and GMR need to do a lot more drilling to get to that stage.

You raise the question of whether they got lucky and drilled straight down a narrow rich chute. I don’t think this is likely. As far as I can tell they have assumed that the ore body they are searching for cuts through the earth at an angle. In order to maximise the likelihood of intersecting it I would have thought that they would have angled the drill holes at the ore body so that they would strike it/them at say 90 degrees. I also assume that they will have attempted to hit the ore body at multiple points along its length. There is a graphic on the 11th page of their 2 December 2011 presentation that illustrates what I am trying to say. If I am right then the intersections they have declared already may turn out to be true widths, which would be huge.

We will have to wait and see what the real situation is.


K