Zinc price flying, page-75

Good news out of RVR today. I did a back of the nap calc to demonstrate the potential:

I. LTED05 intercepted mineralization 80m down dip from discovery hole LTED01 and LTED03 intercepted mineralization 65m up dip from LTED01. Total depth can be estimated to be around 145m.

II. Thickness is fairly consistent down dip. LTED05 intercepted 17.7m of semi-massive to massive sulphides with max down-hole dilution of just 1.7m. At a dip angle of -68 degrees:

19.4m * COS 68 degrees = 7.27m true thickness or 23.85 feet.

III. Metal tenor is improving at depth going from 7.9% ZnEq (0.2% Cu, 1.5% Pb, 4% Zn, 1.1 gpt Au, 35 gpt Ag) to 16.1% ZnEq (0.4% Cu, 4.1% Pb, 9.6% Zn, 1 gpt Au, 37 gpt Ag).

I used current metals prices and did not account for recovery or treatment or refining charges. For the purpose of this calculation I used a blended, unweighted 12% ZnEq grade while keeping in mind metal tenor is actually improving dramatically at depth.

IV. Assuming a 15m diameter inferred area of influence:

So 145m depth * 7.27m thickness * 15m inferred area of influence * sg of 2.4kg/m^3 = 38kt @ 12% ZnEq

or

38kt * 2204.62 lbs/t * 12% ZnEq = 10.04Mlbs of ZnEq

V. Conclusion: Assuming depth and width are constrained (unlikely as it appears mineralization is broadening down dip and and open at depth), RVR will need to prove up a mineable strike length of roughly 1.5km to really make this an exciting discovery. Early days and looks promising. They have 5 years of reserves so they have time.

1.5km strike instead of 15m area of influence would make this 3.8Mt @ 12% ZnEq for a 1bln contained ZnEq pounds. 100 holes with 15m spacing should take just a couple years.


I would certainly much rather hold RVR than junky IBG. The gamblers over on the IBG thread know "diddly squat" about Zn deposits.