Mr X, this whole episode has me totally baffled. Why is it that...

Mr X, this whole episode has me totally baffled. Why is it that 'the market' thinks that there will be exciting (by which I mean ore grade at greater than 1% Cu + Au over big intercepts say 50m or more) assays from this hole. If you look at what the company has said, there is NO evidence for more than geochemical grade assays of maybe 0.1%. Here is a post I put on HC on the weekend. Nobody has yet responded with why I am wrong.

"Sorry guys, I have yet to see any evidence of any ore grade intercepts at all yet. So far as I know, the only information we have to go on is:

1. The Chief Geologist's presentation at the AGM showed some core photos. I would not expect significant Cu/Au values from those core samples. They may well be anomalous, but certainly nowhere near the ore grade of 3% Cu, 1 g/t Au that they suggest in their NPV numbers on the last slide.

2. Tasman's announcement of 23 Nov said "Weak sulphide mineralisation, consisting of pyrite and lesser chalcopyrite (overall estimated at LESS THAN ONE PERCENT SULPHIDES) was intersected between 558m and 587m, and 689m and 710m depth and is currently continuing." We could assume that "pyrite and lesser chalcopyrite" means something like two thirds pyrite, one third chalcopyrite. If that were the case, then that means that the sulphides may be 0.3% chalcopyrite, which would be 0.1% Cu. Anomalous, but not ore grade.

They may have encountered ore grades deeper in the hole, but certainly on what they have said so far there is no evidence for ore grades at all.

I think that I will wait and see what happens with the assays from this hole!"

Apart from anything else, the costs of drilling out and developing a resource increases exponentially with depth, and that is getting pretty deep.

My guess is that they have announced haematitic breccias that have some anomalous values. Certainly deserves more exploration, but nothing they have said says that they are on to the system yet.

Have a look at the Chief Geologist's presentation at the AGM. He shows that the haematitic breccias are related to, but not closely co-incident with ore grade mineralisation in these IOCG systems. I reckon that they have a way to go on this one.