There was discussion here some time ago re: the nugget effect and its prevalence at Hercules and its effect on NI 43-101. This was when NI 43-101 was a but a twinkle in KXLs eye. Now that the NI 43-101 is just around the corner... what are people's thoughts on this? Is resource being calculated using the latest and greatest techniques to account for the 'nugget effect'? I am sure it is... and if so, could this give us a nice unexpected surprise to the upside from the 500K oz Au commonly being thrown around here?

Below is a brief explanation re: the nugget effect from another company's website. There is lots written on this elsewhere. Of particular interest...

"assays significantly underestimated the recoverable gold content and the Mineral Resources due to the nugget effect brought on by assaying smaller size core samples"

red911

P.S. New 52-week low... are they toying with a very thinly traded stock or is this indicative of upcoming results many here said would be known well in advance (i.e. uranium cores)?... No idea but find current price tremendous.

The Nugget Effect

The gold distribution at Goldboro is subject to a “nugget effect”. In the case of Goldboro, gold appears as large nuggets, fine disseminations within or bordering arsenopyrite crystals and fine gold grains associated with carbonaceous material. This particular distribution of gold grains may explain the fact that regular assaying methods (e.g. fire assays) yield lower gold values than a metallurgical balance from mill-tests.

As outlined in the 2006 43-101 technical report, a comparative analysis of metallurgical tests done in 1989, 1990 and 2005 and historical fire assay (FA) results showed that the assays significantly underestimated the recoverable gold content and the Mineral Resources due to the nugget effect brought on by assaying smaller size core samples.