re: Ann: High-Grade Gold at Frenchman's R...
no games, just stale bulls getting out
the only game here is Maldon, Burns is very risky.
The open pits are a sideshow.
Every goldfield in Victoria is different. Bendigo was a low grade field, Ballarat mid range with very rich lodes but as they disovered expensive to find and mine
A1 and Morning Star were dyke swarn bonanze mines. I don't have much confidence in AYC succeeding unless they find a big bonanza reef giving them 3 years production, the only guys going to make money out of that mine are ORS
Maldon is a bonanza field. The grades were simply gobsmacking, but they came from supergene enrichment. Once they got to around 100m depth the grade dropped off dramatically, like hitting patches of 50 ounces to the tonne to 2 to 4 ounces per tonne!
the oldtimers used the expression "lode channels" to describe the geological character of the field. There are 7 lode channels, we are developing into one of the richest. Within the lode channels there are more auspicious places where the richest reef is found. AGS appear to have found one of these, that is what we are heading for . That is why they were prepared to risk millions developing a decline into it.
Underground mining stopped at Maldon in the 1920's. There is no reason that the bonanza reefs do not continue at depth or parallel
This is the first time in a century anyone has bothered to seriously develop and explore this field. But you need serious cashflow to do it.
There is a very strong chance there is 25,000 tonnes of bonanza grade ore in the reef we are targeting. You only have to look at the historic drill intercepts to work out the probability
But you need luck on your side, if we are lucky and we hit rich reef we are set up and cash will flow. All the great mining houses in Australia started their lives working a bonanza reef.
So you place your bets, this a very risky business, it comes down to whether you believe there is a serious chance the Maldon field is worth the risk, otherwise why are you here?
no one is interested in Victorian gold stories. No one is interested in any gold story, which is of course the best time to buy.
ORS Price at posting:
10.3¢ Sentiment: Buy Disclosure: Held
