An overview
posted on
Sep 30, 2010 11:05AM
Focused on the Rice Lake Gold Belt
I talked to an investor relations guy from Appalaches. In answer to questions I asked he said that Rick Boulay was connected with a principal in Appalaches through a related company (Puma Gold ?). Rick was contacted at the Toronto Gold show in March about the possibility of investing in Appalaches, and Rick already knew quite a bit about the structure and geology of Dufferin and the surrounding area from being there, previously. Several of the attractions of the Dufferin are that it has a reasonably modern mill, it has accessible, economic grade ore near the surface, and that the deposits are very predictable in their locations for proving up additional resources. It appears to me that Mr.Boulay sees the path of least resistance for a higher stock price, is to expand the reserves at Dufferin by drilling, rather than pumping the water out of the mine, bulk sampling, and starting up the mill. Finding a decent vein on the Strikepoint JV property is a bit of a shot in the dark, even with the structural controls known to give hints at gold deposition, the magnetics and the LIDAR. Sangold didn't find their best ore for 4 or 5 years, and they were already on some veins, underground. SKP has the same situation, without the benefit of being on any underground veins. There are scattered showings that are relatively small, but the drills have their work cut out in finding major veins with grade. The Dufferin is different, however. It is easy to follow the ore bodies in most directions. The problem is that these folded, anticlinal reefs (whatever that means) are notoriously erractic in their grades of ore from place to place. I believe the theory of the deposition was that nature panned for this stuff as it was eroding out of a hard rock vein, and washed the gold into a porous structure like a reef, where it concentrated and resides today. The "folding" I don't understand - anybody know more about this formation ? At any rate, one of Australia's biggest gold fields is an anticlinal reef. I think the news will be from Dufferin.