re: Ann: High-Grade Gold at Frenchman's R...
The results of the trial mining now take on more significance.
For those not familiar with nuggetty gold reefs , the only way you can actually determine payability of these reefs is to "open them up". Drilling can only provide the structure , not overall grade
For underground reef that is expensive, you have to develop and drive into the reef before you even know if it will payback
There is far less capital required to develop these near surface open pit prospects. The main issue is the strip ratio which is always very high, however if the grade is over 4gpt then its payable , based on the London Hill pit , all up costs are around $900 at 4gpt and drop to around $700 at 7gpt. At 3gpt they are still payable at $1500 gold
ORS Price at posting:
10.3¢ Sentiment: Buy Disclosure: Held
