Following Les Davis' presentation I've been reviewing the March quarterly again, particularly Figure 1 and the following statement on Page 8:
"Development of the main decline was halted during the quarter as diamond drilling from the 30 level intersected multiple mineralised structures to the west of the main Daisy Deeps ore structures that are outside the resource (refer to Figure 1). Further drilling was required to ensure the main decline did not develop through these new zones."
Les said in his RIU talk that there appears to have been a change in structure of Daisy Milano below 550m suggesting that gold endowment has increased from 1000 oz per vertical metre to 2000-3000 ovm. More work needs to be done but it suggests that working faces along DM could be increased from four to 10 moving forward.
Because capital development has now moved to the west (Figure 1) an additional benefit is that the decline will be closer to Haoma, which Les said is mirroring Daisy Milano with its strike increasing from 40m near surface to 400m at 250m, very consistent with DM.
Chatting to Les before his talk, he now intends funding Murchison from cash flow without raising equity, perhaps a small bridging loan during the pre-production phase in the Sept 2012 quarter. This is a change of tack since talking to him last October... possibly a result of these new additional ore structures at Daisy Milano, which are outside the current resource.
Rowingboat
SLR Price at posting:
$1.93 Sentiment: Buy Disclosure: Held
