Re: ECU Silver Receives Assays for the Deep Drilling in Santa Juana Mine
in response to
by
posted on
Aug 23, 2011 01:40PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
When I qualified my comments in terms of the overall resource, what I mean is that even another 100,000 oz of gold is not all that material in terms of a resource of 5 million ounces. Sure 100K of high grade gold would be fantastic and contribute to a nice rise in the stock if we get it, but it is hardly going to change the dynamics for the mine.
So lets say we hit 10m of 14g/t gold. That would be huge, right? Lets say this enriched zone continues laterally for 50m. Just round it all off into a cube and you get 10m x 10m x 50m extension = 5000 cubic metres, with a rock density of say 2.5 = 12500 tons of high grade @ 14 gpt = 175000 grams of gold or just 5600 ounces of new gold. I mean that kind of hit would be huge, but it would still amount to a very small addition of gold to the net resource. Think of how big the magnitude of the discovery would have to be to get to 100,000 ozs and even then it would still be the lower end of a 'significant' upgrade to the resource.
My point is that this story will evolve on the basis of a much larger MS zone being defined, with a much lower grade overall, but contributing to perhaps another million ounces or two of total gold. If we look up the production history from the former Penoles Reyna mine, that kind of resource is certainly reasonable. So at the end of the day, I am hopeful we see a high grade interval reported to get some interest and excitement back into the stock, but I am much more interested in consistant additions of this bulk tonnage material that was reported today as they continue to step out.
cheers!
mike