gambler, you're off the mark on this one. You need to understand the underlying geology and where the gold deposit being searched for is actually (hopefully!) located.
3-4m below surface are massive igneous rock structures that, when they cooled, cracked into massive blocks. It is the narrow cracks that run between these massive blocks that have created the perfect "plumbing system" for (hopefully!) squeezing long and deep veins of molten gold up to the surface.
The termites which are highly active in the area bring the gold traces to the surface when they build their mounds. So, in this type of geology, gold traces at surface could be likened to a "geiger counter for gold" - it indicates that there is gold down there somewhere. However, the concentration at surface has no bearing on the concentration of underlying mineralisation in the big rock structures - which is what we're all interested in - other than to provide some indication of how close to the main gold source the surface sample is.
In Kishugu alone we have over 20 sq km of gold traces at surface, sitting atop this perfect gold geology. Put yourself in the shoes of a geologist in charge of the drill rig, whose career depends upon finding the gold with a limited drill budget - maybe 10-20 holes. Where would you start? You'd have to be a bit nervous wouldn't you? A geo told me this is the sort of thing that keeps them awake at night. You could go for broke and start banging some holes in and hope for the best, or, if you value your career (and respect your shareholders), you might get an excavator and dig a grid of long trenches, down to the bedrock, do some more soil testing and look for higher concentrations of gold in soil, to guide where you start drilling.
That's all these guys are doing, which as a shareholder, I'm ok with
IXR Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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