The following extracts are borrowed from another thread (Credit...

The following extracts are borrowed from another thread (Credit to Graeme933).

I though it relevent to our company PIR as well. I have edited the other stock out and only used the relevant sections as I dont want to be moderated for x promotion.

"Resource analysts from the Royal Bank of Scotland explain the exploration process based on the evolution of a micro-cap explorer. The explanation highlights the stages of the exploration process in brief and the possible effects on a company's share price that can occur prior to making a discovery.

First pass drilling is usually done with a RAB (rotary air blast) rig. RAB drilling blows air down the drill rods, blasting dirt back up to the surface between the drill rod and the wall of the hole. This is a cheap means of drilling but due to the possibility of sample contamination from the sides of the hole, sample quality is quite low and data cannot be used in resource calculation. That said, data is useful to vector in on higher grade zones which will be targeted by more expensive RC and diamond drilling. The market doesn't discriminate on sample quality and will rally on positive results. The limiting factor for share price impact is the depth of the hole, which is usually quite shallow, so intersections are generally quite short (20m max), which is not sufficient to assess economic potential.

First pass drilling - share price impact: moderate
Once a soil anomaly has been identified, more sampling takes place to close the gap between samples in hope of identifying the highest grade or "bullseye" part of the anomaly. This infill process is critical as it helps target the drilling, which is expensive. This is often overlooked by investors who wonder why it's taking so long to get the rigs on the ground but is critical from a cost management point of view.

The rule of thumb for gauging a significant intersection is 100 gram metres i.e. length of intersection x grade. So 50m at 2g/t or 10m at 10g/t etc. If you can hit a couple of 100 gram metre intersections then it's a chance of having discovered something that might be able to be mined.

Second pass drilling generally has the greatest share price impact as it is during this phase that a feel for the economic potential (if any) of a deposit can first be assessed. As mentioned above, the rule of thumb for gold is +100 gram metre intersections (10m at 10g/t or 50m at 2g/t etc.) have a reasonable chance of turning into something economically viable.

From a share price impact perspective within the 100 gram-metre rule of thumb, 50m at 2g/t would be a preferable intersection over 10m at 10g/t as it implies the gold is reasonably evenly dispersed through the rock, which is better for resource confidence. If individual metre samples are disclosed and grades are pretty consistent around the 10g/t mark as opposed to 3m at 30g/t and low grades for the rest, the difference between intersections is negligible from a share price impact point of view.

Second pass drilling is also the stage at which the resource size can be assessed. Typically first RC holes are drilled in sections 200m apart. So if intersections of a material thickness are intersected in one section, then another, it adds 200m strike (long axis extent). In West Africa you probably need 1Moz before considering development. As a rough guide 500m long x 100m wide x 200m deep x density of 2.0 (typical) x grade of 2g/t = 1.3Moz."

Now I ask using their rule of thumb guide we gotta be sitting ona s**t load of gold dont we ??

I'll leave it up to others to pull the calculator out and make a estimate, but Im feeling dam good about this company at present.

Cheers.

Duke