Re: bluesideup
in response to
by
posted on
Oct 24, 2011 03:21PM
(Edit this Message from the "Fast Facts" Section)
The initial 43-101 won't include any estimates of reserves or resources. They need to do more drilling for that. The initial 43-101 will be primarily a historical and geological document. It will cover historical data and information and the geology of the area. They can include historical grades and assays, but they have to be clearly labelled as such, and can't be used to calculate reserves and resources. That will come later in an updated 43-101. 43-101 is not a specific document, it is a general standard as to how data and information is reported and used. They can update the 43-101 as drilling results come in and resources are defined. It will take a reasonable number of drill results to define a resource. Drill results can only be used to define a resource within an area around the drill hole, with the size of the area determined by the homogeneity of the grades (which is in turn determined by drill results). For instance, if the grade is consistent in an area, then the holes don't have to be spaced as closely. The initial resource (estimated ounces of gold) will be low, but will expand as drilling proceeds. But if they find those ounces in a small area of high grade, the obvious inference will be that there will be lots more as drilling continues. It will take years of drilling, if ever, to really determine how much gold is in WEM.