Ann: Explains High Grade Exploration Results , page-41

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    re: Ann: TRF: Explains High Grade Exploration... For what it's worth, nothing stacks up about this story for me.

    The local miners drove an adit into the hillside down a single, rod-like shoot of ore and appear to have got no encouragement in their lateral crosscuts to the north and south.

    OGX have taken a bulk sample from the face of this drive and naturally got reasonable gold grades at that location, because the miners were actually driving along a vein. That doesn't tell you that there is anything else to either side, or above or below, or any significant tonnage potential.

    Careful scrutiny of the map showing follow-up holes by OGX suggests that all the holes along strike to the north and south got sub-economic gold grades, and that the only ones that got grade were a couple directly along the line of the narrow shoot that the miners drove on, further down plunge of the end of their workings.

    This suggests to me that the huge implied gold resource, in that blue 'slab' in their earlier figures is not only hypothetical, but has been shown by their drilling to be absent. However they do not acknowledge this negative result and continue to speak as if there is a large potential gold resource present.

    Then the sudden discovery of a large silver intersection in one hole, in an alteration zone that lies between the main shoot of gold mineralisation and another minor shoot some metres above it, and the implication that a) This zone is real and the grade and width reported are accurate, despite the likelihood of 'smearing' and other contaminating effects in such very high grade, nuggety, probably clayey, epithermal native silver intersections; b) that this is likely to be true width, and c) that similar grade/width zones will be present in the other holes.

    Then the odd description of this mineralisation being 'at right angles' to the gold mineralisation ..hardly a reassuring geological structural description.

    The silver zone sounds to me like a rather localised occurrence, along a narrow zone of high grade epithermal mineralisation within a cross fault. It also sounds like this cross fault may have been drilled at quite a high angle, to produce the impressive width, and that there has been a nugget effect due to a (possibly quite small) patch of native silver within the fault zone, with all the smearing and down-hole contamination that can produce.

    Geologically, none of it stacks up as a big discovery to me at all, and I have been following it for a few months now, ever since someone put it across my desk with the suggestion that it really was the next big thing.

    Trafford did very well out of their investment in Robust Resources, but that project hasn't gone into production, and I will be rather surprised if it ever does. This one looks even less likely to me..

    This is just my own geological interpretation of the very limited information that the company has released, but I have drilled a few of these things and I know how most of them turn out. When you get negative drill results, like those shown on the map of the grid of holes north and south of the original line of adit, then you have disproved your original exploration model. At that point it is best to admit it, report the results clearly to the market, and then move on to something else.


    (Do not act on anything I say though. I am not a financial adviser and this is not financial advice)
 
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