I’m working on a post about investing in mining companies (which I don’t think I’ll ever finish … 37 pages and still going) and this morning’s ann was a good example of something I have touched on, how companies report their results.
“Devon Cut Prospect (tested by a single RC drill hole within a 2km zinc soil anomaly) as a significant discovery and has identified high-grade vanadium potential.” And
“Grab sampling near the Devon Cut Prospect returned high-grade vanadium which is inferred to be related with a large mafic dyke system intrusion (magnetic and vanadiferous) that occurs immediately west of the Devon Cut zinc mineralisation. o Grab sampling results include high grade 3.29%, 1.82% and 1.52% V2O5.
“The Devon Cut discovery hole intercepted 3m of vanadium anomalism from 53m within altered andesitic basalt.”
Without commenting on the merit of this morning’s ann, I wanted to mention two things.
One: notice the difference in today’s reporting style in appendix 1 compared to that released on 16th Jan.
Both tout high grade results but the reporting units are different. Given the poor reception of the 16th ann where results were presented in percentages, today’s ann has been presented as ppm. The numbers look much better now to a lay person or novice don’t they?
The first ann, followed by today's
Devon Cut Prospect (BRRC019) – New Zinc Discovery (image 2 & 3)
Single metre re-sampling of previous composite samples and multi-element analysis returned: 5m @ 8.0% Zn, 0.35% Pb from 32m
inc 1m @ 21% Zn, 0.97% Pb from 34m.
The high-grade intercept was within a broad zone of zinc anomalism: 30m @ 1.5% Zn from 28m
Imo, there were three decent intersections between 32 and 36m from hole BRRC019, the one that RTR used to state high grade results. They were:
32-34m = 44954ppm or ~4.5% Zn
34-35m = 209946ppm or ~21% Zn and
35-36m = 85880ppm or ~8.5% Zn
The remaining intersections in that hole are all less than 1% Zn which is all low grade as seen in the image I posted earlier.
The second point I wanted to make was in regard to the ‘Vanadium potential.’
We are given a percentage of 1.52 from a grab sample and an anomalism from 53m. I’ll repeat that, a grab sample and an anomalism.
The grab sampling adds some more to the ann to raise expectations or hopes but grab samples are biased samples (as an experienced geologist is only going to pick something up that shows potential, that sample may not be indicative of the bulk of the other material present nor does it come with a guarantee it didn’t fall off the back of a speeding land cruiser from a tenement miles away) and should be viewed as such. The reported 1.52% is high grade but it came from a rock sitting on the surface. I may also get an anomalism for Vanadium from my back yard.
Anyway, I hope for holders that this project turns out. Let’s face it, it was one hole in that particular project area and further drilling may yield better results. I just saw today’s ann as a rehash of the one from the 16th, written differently to prop the price until further activity gets underway.
All jimo
Perdy
RTR Price at posting:
5.6¢ Sentiment: Sell Disclosure: Not Held
