to add more to the equation... an excerpt from a previous HC...

to add more to the equation... an excerpt from a previous HC post: (?5 million ounces of gold....)

The point to all this background is that Carrick’s low profile might not last much longer. Last week (September 27) the company reported that its on-going drilling program had confirmed an expectation that the Lindsays structure continues along strike and at depth. The JORC compliant resource is now put at 25.4 million tonnes of material averaging 2.44 grams a tonne. That translates into a “measured” resource of 620,000oz and the “inferred” two million ounces. The material outlined is low grade, but it should be easy to mine as it is all close to the surface. Adding interest to the drill results is the discovery of high-grade structures and, for the first time, the “discovery” of Carrick by a leading Australian stockbroking, BBY ,which once traded as Burdett, Buckeridge & Young.

In a report dated September 14, when the stock was trading at A$1, BBY put a buy tag on Carrick. Early followers of that tip are probably wondering why because Carrick promptly fell with the gold price. But, BBY and Carr are confident that there is much more to come with Carrick’s immediate aim being to hit the five million ounce resource target while also converting resources into the reserve category, and planning the best production route. Offers from other Kalgoorlie-miners to joint venture Lindsays have kept Carr busy, as has an early proposal from Placer Dome, before it was acquired by Barrick, to truck ore to its under-utilised Paddington Mill which is located about 45kms to the west. No mining or treatment decisions have yet been made, but it’s a fair bet that Carr will do it his way.

BBY’s view of Carrick is that it’s two million ounces of gold outlined already at Lindsays is a “significant resource base”. More drilling is required to elevate this inferred resource to the indicated and measured categories. “We are confident that an infill drill program will increase the company’s JORC indicated and measured resource base from the current 620,000oz,” BBY wrote. “A resource base of this size has the potential to support an open cut mining operating and possibly a stand alone processing plant”. Missing from that observation is that Lindsays is not located on the far side of the moon. It is half-way up the Yarri Road, and while that means little to someone in London, it is a stone’s throw from the prolific Kanowna Belle goldmine (well, 25km actually), 10km from the Silver Swan nickel mine, and 45km from the soon-to-be sold or mothballed Paddington Mill – which represents a perfect ore treatment option if the price is right. The ball is now very clearly in Frank Carr’s court.