Based on my reading of the announcement, the mine plan as it has been described MAY yield about 47k oz.
Of course there are many unknown variables and the shoot is still open along strike, up and down plunge/ dip.
These are my inputs to get to that figure:
Level 1100 is currently 66m long of high grade ore. The announcement states that it is between 3.7m and 9.0m in width. We know the 3.7m section is at 18.8g/t and that the sludge holes (on the other face) are 7m @ 6.8 g/t.
I've assumed that 38m of the strike is 3.7m wide @18.8g/t and 22m of strike is 9.0m wide @ 9.4g/t [made up of 7m @ 6.8g/t and 2m @ 18.8 g/t].
Each level will have 20 vertical metres and there is intended to be 6 levels at this stage. Thus:
Dimension = [38m x 3.7m x 18.8g/t] + [22m x 9.0m x 9.4g/t] x 120 vertical metres x Specific gravity of 2.7 = 47k oz.
Not sure what the SG should be and I guess that there will be dilution as well so more t for lower grade.
Downside would be reduced horizontal dimensions of the ore body away from the 1100 level whilst upside would be that the strike continues to the South for some distance and the ore body extends vertically further than the current mine plan (i.e. > 120 vertical metres) and is wider away from the 1100 level. On balance I would think it likely that there will more upside than downside potential.
Any corrections?
Cheers John
ORS Price at posting:
5.0¢ Sentiment: None Disclosure: Held
