go gold, page-5

AMX?

The pricing of an in ground Jorc compliant resource ounce of about $5 per ounce is ludicrous.

Aside from this the exploration upside of the 150km fault, is priced about zero, which again is ludicrous. It shows the stupidity or simply ignorance in the market place (which to me looks a lot like a pack lemmings running around after their heads have been removed)

These kind of large gold systems nearly always grow resource and reserve ounces with time (Camp Resource Ounce Yield Curve...for an example you could look at the Goldfields St Ives Camp, which grew from about 1 m ozs in 1985, and so far has produced north of 15 m ounces, and they have reportedly just made a new M oz discovery, where geological theory said they should not look!, you could equally look at other gold camps over the years...). How quick is a function of the skill of the management team, geology, exploration technology etc,

Trying to paint the picture in simple terms...hard to do but here is a go

From a geological perspective, when you have long (strike length) structure/s in a horizontal plane, it is a fair bet that these structures have significant vertical extent, and penetrate signifcant depths into the crust where the rocks are a lot hotter, ave geothermal gradient is about 25 d c per 1 km depth, depth the batie fault might penetrate to could be of the order of 30 kms???). What this means, is that the fault plane at Batie might have dimensions of 150 by lets say, 30kms (depth). It of course will not be a plane, but lets keep it simple. This plane, is a permeability path for fluids to circulate along. They come up when hot, and go down when cool, setting up very large scale convection cells. The longer the path, the higher the probability that they will encounter gold mineralisation in the rocks at depth (lets say in intrusions , or in volcanics etc), and remobilise it...say bring it to the surface (again being very simople) ... What is obvious from the fact that there is gold along the entire length of the fault plane exposed at the surface, is that the fluids had gold in them.


So then you need physical and/or chemical trap sites along the fluid plane. They obvious have many trap sites, but again the trick is knowing/finding which ones are the ones which contain significant commercial ounces of gold as quickly as possible. This is where management earns its money or not. Todate management have been very largely helped by the artisinal prospectors and miners.

So when you look in detail at what AMX have reported so far you see some very positive things

. different trap sites.
. different structural controls.
. a number of mineralised intrusions (heat engines which help to provide the heat to get the fluids flowing)
. gold over very large distances along the main structure
. gold off the main structure, and in fact permissively secondary and tertiary structures
. large alteration haloes, over 10's of kms.

and some other positives.

Compare this with Papillion Resources, who really only have a single shoot so far which has a strike length of about 1km, and not much more. They do not control a structure the same length of prospective structure if you like, as AMX. AMX has the potential to have multiple shoots like this. Time will of course tell. Again its where the Exploration Mngt earns it stripes.

AMX appear to be trying to find shallow oxide ounces as priority, so the shoots which could lie under any of the oxide ounces will be left for another day. Cest la vie. Cannot do everything with limited monies, and top exploration teams do not grow on trees.

So as I said I am very sure the gold is in the ground, The trick is to find enough of it, quick enough and get the met, mining into a pre-feas and get mining. However, the trick will be in getting the timing of these activities. So for instance trying to raise money right now is tough, and would be highly dilutional. So optimise exploration effort, to get the financial metrics into a compelling case, and then when the POG starts to move (as it is), then get the gold at Batie moving.

A group like Sprott do have some brains in the Geological side, and hence listening to them is not a bad thing. There are a few broking houses which must have a combined geological IQ less than room temperature. Shut these guys out, they are a dustraction.

Good luck with your investing. I am being brief above, and you should certainly get some other opinions before investing. Just trying to share a bit of info with you. I am not a trader.