It would be great if TRH could do a RNI or NTU pre drill market Cap. I think they were both $100 million plus before drilling.
Any chances?
TRH has drilling core from one hole in the region to confirm grades and gamma ray-neutron geophysical logs from other oil holes. How accurate are gamma readings? I have three sources. The first is a link to some great reading, the second is from Paradox Basin Resources Technical Report and the third is from the Potash one 2008 Technical Report.
SRC 2 - "In place potash resources can be estimated by interpreting geophysical logs from oil and gas wells and by making stratigraphic correlations. The thickness of a silvinite bed is estimated by measuring deflections found on the density and gamma ray logs. The potash-bearing beds are characterized by low density and weak radioactivity as opposed to salt with low density but no radioactivity."
SRC 3 - "It is possible to calibrate the gamma log so that deflection of the reading (in API units) from a base line is converted by means of a cross-plot into an estimate of %K2O. This would be helpful in interpreting the grade for the two holes that penetrate the Prairie Evaporates in the Permit Area, DH 14 and DH 22, and that do not have assayed core. It is necessary to know parameters such as hole diameter, nature of fluid in the hole, type of logging tool, and logging company. In the past, logging companies, such as Schlumberger or Lane Wells, provided such calibration charts so that the potash content could be read directly off the gamma log. With proper calibration, the weighted average potash content expressed as % K2O is determined by measuring the area enclosed by the top and base of the potash bed, the base line, and the gamma curve. This technique can be used to determine the potash grade in drill holes which have not cored the Prairie Evaporite and for which no assay results are available. No attempt has been made at this point in the study to estimate a potash grade for those drill holes that do not have a potash assay; however, this task should be undertaken in the near future with the results incorporated into further definition of the Mineral Resource or in engineering studies. Caution must be exercised when using this technique, as Imperial Oil did encounter difficulties in calibrating their drill core grade measurements from assays to the gamma log (letter by D. D. Lougheed to Department of Mineral resources dated June 10, 1964)."
