My interpretation is speculative and conceptual BUT the target area contains a number of drill holes that identified visible gold mineralisation over a 200 metre plunge below and around the area where the two plunging vein systems have been identified and developed.
The third target under development is more of a "bulk ore" target that carries lower grade material that is laced with higher grade "spurry veins" that may have a flatter orientation than the two steeply plunging vein systems already identified. This bulk ore zone is at least 11 metres wide and carries grades of "at least 5 grams per tonne"
ORS has already extracted 2,000 tonnes at 9 g/t au from development ore extracted from the two steeply plunging vein systems and is probably looking at an additional 3,500 tonnes (at 5 g/t au??) from the first 30 metres of the bulk system.... and potentially more available as they push forward on the horizontal development across the bulk zone.
My ballpark guesstimate is that they will have around 1,100 ounces of gold to process from this development ore, which is currently worth around $1.6 million.. plus more stuff from the extension of the bulk zone.
They plan to develop the 1080 level which will allow them to more fully stope these three gold targets AND significantly reduce cash burn to develop a growing gold reserve.
These gold targets form part of the Alliance South system that is located between two vertical faults that are 300 metres apart. Alliance South is also part of a much larger shear system that extends for over 1,500 metres that had historic production of 1.5 million ounces of gold.
These shears run in parallel lines about 150 metres apart that are laced with additional gold targets identified by ORS.
IF my speculative comments are correct, then we should see a significant re-rating of ORS as this ore system continues to grow and develop over the next three to six months.
Good luck to all longs
ORS Price at posting:
5.2¢ Sentiment: LT Buy Disclosure: Not Held
