Technical analysis, page-294

Hey Sir, love the aerial searches and grid patterns ref's. So much so they inspired me to crunch the numbers through a Bot and extrapolate based off grade/tonnage data in MRE and from follow up drill results, including the pending 7 to see what the expectation might be?
For me you have a Geo veteran of 30 yrs who is CEO/MD of an ASX listed company and who sold the leases to OZM before staying on to run the show with 43m shares held in the future of the venture, with a mob doing pro bono metwork studies and who have agreed to run the show once up & going... hmmmmm I have a suspicion AP has had a pretty good handle on things for quite some time

Opinion only so dyor.. h8tey

Likely Assay Results for the 7 Pending RC Holes

Without assay results, predictions rely on the Cross Fault’s established mineralisation, drilling objectives, and regional analogs. The 7 holes likely aim to:

• Extend the 400 m strike length (e.g., to 600–800 m).
• Test depth extensions, as prior holes (e.g., MNORC 221) ended in mineralisation.
• Infill high-grade zones to confirm continuity.

1. Expected Grades and Widths:
   • Previous RC Results: Intercepts range from 39 m @ 1.09 g/t Au to 12 m @ 4.26 g/t Au, with high-grade zones (e.g., 2 m @ 22.58 g/t Au). Average grade across wide intervals is ~1.5–2 g/t Au, with narrower high-grade pockets (>5 g/t Au).

     
     
   • AC Drilling: High-grade intercepts (e.g., 4 m @ 13.54 g/t Au, MNOAC 705) suggest potential for similar grades in RC holes targeting these zones.

     
     
   • Likely Outcomes:
     • Base Case: Most holes will intersect mineralisation similar to the 20-hole program, with grades of 1–2 g/t Au over 10–40 m, including high-grade intervals (e.g., 2–5 m @ 5–15 g/t Au).
     • Optimistic Case: One or two holes may hit bonanza grades (e.g., 1–2 m @ 20–30 g/t Au) within wider zones (e.g., 15 m @ 3–5 g/t Au), especially if targeting fault intersections.
     • Pessimistic Case: Some holes may yield lower grades (e.g., 0.5–1 g/t Au over 5–20 m) or be barren if drilled outside the mineralised zone.
   • Probability: The base case is most likely, given the 400 m strike’s consistency and open mineralisation. The geological setting (cross faults, sandstone host) supports high-grade potential, but continuity is not guaranteed.

     
     
2. Geological Controls:
   • Cross faults create fractured, permeable zones ideal for gold precipitation, as seen in intercepts like 9 m @ 5.79 g/t Au. North-south faults and quartz veining, with pyrite/arsenopyrite, mirror Carosue Dam’s high-grade deposits.

     
     

     
     
   • The 7 holes likely target these structural features, increasing the chance of high-grade hits, but fault offsets or pinch-outs could reduce grades in some holes.
3. Drilling Strategy:
   • The ~106 m average depth suggests deeper drilling to test fresh rock mineralisation, as prior RC and AC holes ended in mineralisation (e.g., MNORC 221 at 48 m @ 1.66 g/t Au).

     
     
   • Step-out drilling along strike (north or south) or down-dip is probable, aiming to double the strike length or confirm depth continuity, increasing resource potential.

Potential Addition to the MRE

To estimate the MRE increase, I’ll model the 7 holes’ contribution based on expected grades, widths, and geological extent, using the Cross Fault’s prior results and conservative assumptions.

1. Tonnage and Ounces Estimate:
   • Assumptions:
     • 5 of 7 holes intersect significant mineralisation (accounting for potential misses).
     • Average intercept: 20 m @ 1.5 g/t Au (base case, aligning with 48 m @ 1.66 g/t Au, 17 m @ 1.65 g/t Au).
     • Mineralised zone: 100 m width, 200 m strike extension (half the current 400 m), 20 m thickness.
     • Density: 2.5 t/m³ (sandstone, primary deposit).
     • Recovery: 90% (primary ore, conservative vs. 88.9% for oxide).
   • Calculation:
     Volume=200 m×100 m×20 m=400,000 m3\text{Volume} = 200 \, \text{m} \times 100 \, \text{m} \times 20 \, \text{m} = 400,000 \, \text{m}^3\text{Volume} = 200 \, \text{m} \times 100 \, \text{m} \times 20 \, \text{m} = 400,000 \, \text{m}^3
     Tonnage=400,000×2.5=1,000,000 t\text{Tonnage} = 400,000 \times 2.5 = 1,000,000 \, \text{t}\text{Tonnage} = 400,000 \times 2.5 = 1,000,000 \, \text{t}
     Ounces=1,000,000×1.5×0.931.1035≈43,400 oz\text{Ounces} = 1,000,000 \times \frac{1.5 \times 0.9}{31.1035} \approx 43,400 \, \text{oz}\text{Ounces} = 1,000,000 \times \frac{1.5 \times 0.9}{31.1035} \approx 43,400 \, \text{oz}
   • High-Grade Contribution:
     • Assume 1–2 holes hit high-grade zones (e.g., 5 m @ 10 g/t Au within 20 m @ 1.5 g/t Au), adding ~5,000–10,000 oz per zone.
     • Total high-grade: 5,000–20,000 oz.
2. MRE Increase:
   • Base Case: 40,000–60,000 oz, assuming consistent mineralisation over a 200–300 m strike extension.
   • Optimistic Case: 80,000–100,000 oz, if the strike extends to 400 m or high-grade zones are prevalent.
   • Pessimistic Case: 10,000–20,000 oz, if only a few holes hit mineralisation or grades are lower (e.g., 0.5–1 g/t Au).
   • Likely Range: 40,000–80,000 oz, balancing prior results’ consistency with geological variability. This increases the MRE to 300,000–340,000 oz.
3. Comparison to Paleochannel:
   • The paleochannel’s infill drilling added 10,000–20,000 oz through grade improvement (e.g., 5 m @ 5.87 g/t Au), but its low-grade (0.70 g/t) placer nature limits upside.

     
     
   • Cross Fault’s primary deposit, with higher grades (1.5–2 g/t, up to 22.58 g/t) and wider intervals, offers greater MRE growth potential, similar to Kanowna Belle’s primary deposit vs. QED’s paleochannel.

Comparison to Kanowna QED

• Similarities:
  • Both projects leverage early cash flow from oxide resources (QED’s paleochannel, Mulgabbie’s paleochannel/Cross Fault oxide zones) to fund primary deposit exploration (Kanowna Belle, Cross Fault).
  • Cross Fault’s high-grade potential (e.g., 2 m @ 22.58 g/t Au) echoes Kanowna Belle’s discovery, though on a smaller scale.
• Differences:
  • QED’s paleochannel was low-grade (0.5–2 g/t) with limited high-grade zones, adding minor ounces. Cross Fault’s primary mineralisation (1.5–2 g/t, up to 22.58 g/t) and 400 m strike suggest a larger, higher-grade resource.
  • Mulgabbie’s modern drilling and higher gold prices (~A$3,844/oz vs. ~$350–400/oz in the 1990s) enhance economic viability.

Critical Analysis

• Geological Confidence: The Cross Fault’s 400 m strike, open mineralisation, and Carosue Dam analogy support robust results, but fault offsets or dilution could lower grades in some holes.

  
  

  
  
• Assay Delays: Extended laboratory turnaround times due to Kalgoorlie’s exploration boom may delay results, but the 7 holes’ depth (~106 m) suggests targeted extensions, increasing success likelihood.

  
  
• Overextrapolation Risk: Assuming uniform high grades (e.g., >5 g/t) across all holes is optimistic, as prior results show variability (1–22.58 g/t). The base case (1.5 g/t over 20 m) is conservative and realistic.
• Data Gaps: Exact hole locations and targets are unspecified, but step-out/infill intent is inferred from prior drilling patterns.

Final Answer

The seven pending RC holes (745 m) at the Cross Fault Discovery are likely to return grades of 1–2 g/t Au over 10–40 m, with 1–2 holes potentially hitting high-grade zones (e.g., 2–5 m @ 5–15 g/t Au, up to 20–30 g/t Au), based on prior RC results (e.g., 48 m @ 1.66 g/t Au, 2 m @ 22.58 g/t Au) and the sandstone-hosted, fault-controlled setting. These holes, targeting strike or depth extensions of the 400 m mineralised zone, could add 40,000–80,000 oz to the 260,000 oz MRE, potentially increasing it to 300,000–340,000 oz, assuming a 200–300 m strike extension at 1.5 g/t Au. Compared to Kanowna QED’s low-grade paleochannel (0.5–2 g/t), Cross Fault’s primary deposit offers greater high-grade upside, akin to Kanowna Belle, enhancing Mulgabbie North’s Heap Leach Feasibility Study prospects. Results are pending, with delays possible due to laboratory backlogs.

Sources:

• Provided announcement (Paleochannel RC drilling, Cross Fault pending holes).
• Prior context: Cross Fault (), Paleochannel, Kanowna QED.

  
  

  
  
• Web sources:.