We understand from speaking to the company that the bulk sample consisted primarily of development material, which tends to be lower grade than stoping material. As stoping material normally makes up the bulk of mill feed in a commercial mining scenario, this suggests that future head grades from the 007 Zone could be higher. We note, however, the opposite occurred with the company’s Hinge Zone, which has recently delivered head grades of approximately 6 g/t – far below the bulk sample grade of 17 g/t. In an effort to be prudent, we are revising our model for the 007 Zone to reflect the bulk sample grades.
Did anyone else read that and think, "WTF"? They used Development Ore in a bulk sample, a sample which the market was waiting for like the Second Coming, a sample that would be scrutinized beyond belief? Maybe they should just drop the 'Development' in the description, as it seems like there isn't any other kind of ore around there.
Who the heck ARE these guys running the company?
