to jorc or not to jorc, page-13

chief I had a look at that 1998 report you referred, most interesting

towards the end the grade factoring gets mentioned which reminded me of CGT's analysis this year of Wattle Gully. They came up with an understatement of grade of six times comparing diamond drill core to production records. It will very interesting to see what CGT comes up with in their soon to be released resource statement

If you look at the GDR approach to resource estimation, they didn't have the historic production records to work with. Maybe this explains why they couldn't "grade factor" their assays. Under JORC they couldn't because no historic precedent

So I am getting this strong feeling that both CGT and MCO are going to apply grade factoring in their resource announcements. Both companies are unique in having at their disposal very detailed mining records from which they have been able to compare mill revovery to sample assays. We should rememebr that most of the Victorian gold fields shut down around WW1 and Morning Star and Wattle Gully are probably the only modern Vic mines which had high quality management and very detailed records

I think we are in for some very good news

With regard to CGT if you read their announcement recently there is constant reference to the view that the mere fact a quartz reef showed any mineralisation is significant. No doubt from their work studying Wattle Gully
they have seen low assay levels translate to much higher head grades so any low grade diamond core mineralisation has the potential to be economic

For both companies it is simply a matter of publishing the basis for their views and then the market can examine and decide for itself.

Another factor we should rememeber is if gold does go to over $1500 and stay there, companies like MCO, GDR CGT will have enormous increases in their potential mining reserves as previously subeconomic ore becomes viable to mine