short term trading week starting - 28th apr, page-16

Entry for STT List

SCI
7.5c
104 million shares
7.8 million MC

I been waiting for the results of the companies QLD gold drilling for a while and it looks like that the preliminaries will be released either this or next week.

The company has stepped away from its Broken Hill ground for the time being and are drilling what they see as an intrusion related gold deposit (IRGD)in FNQ.

The prospect was held previously by a few companies who drilled a number of holes on the edges of what is called the middle camp valley where alluvial gold mining has been taking place for some time. The company to last hold the prospect was Maximus and they pursued it for the alluvial gold mining. However they did drill some hard rock RC getting 12m at about a gram to the ton Au and 8 m at the same grade or there abouts. Sons of Gwalia drilled a few holes as well getting patchy mineralisation in all holes with a high of 9 g/t gold in one meter.

When SCI took the ground over they conducted an IP survey and got spectacular results running up to 100ms indicative of large accumulations of disseminated sulphides starting at about 100 to 200 m bellow surface beyond the depths of the past drilling programs. A link to a video fly through can be found bellow.

https://www.youtube.com/watch?v=iBYiEBqvKn0&feature=player_embedded

All in all geologically everything fits.

The gold geochemistry is so strong that there is an alluvial/eluvial mine on top of the IP anomalies.

The IP anomalies are huge and extremely strong and appear to have shapes resembling buried mineralised intrusives.

The geochemically hot area along with the IP anomalies occurs in an area which forms a circular hole of magnetite destructive alteration indicative of a strong long lived hydrothermal system.

Looking at reports from the SOG drilling the area is underlain by intrusive dykes of mineralised intrusive which has been obliterated by phyllic alteration indicative of the higher reaches of a porphyry or IRGD system.

Everything fits, just need a bit of luck.

As a side note the company has drilled a very deep hole into one of the anomalies that appears to have gone beyond the designed depth. This happens because you have either not hit the target or because you are still in mineralsiation.

At the moment its quite risky. But should it come good it will be quite a run. Especially when you consider the size of what the IP represents.

Confirmation of good gold grades in the outlines of the IP can see this become a 20 million Au oz deposit very quickly.

Stay tuned.