thoughts on drilling
posted on
Jul 09, 2011 10:42AM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
Kherson, Hog and I touched on this subject breifly yesterday at our little meeting. I didn,t get a chance to comment on it more, because I had to leave. I will try to expand on it now on the board and maybe get some other thoughts on this subject.
I have posted the first drill plan suggested by quantec a week or so ago. It looks to me that if we follow this plan, there will be 10,000 meters of drilling done in phase 1 of the drilling program. Lori has stated in the news release that our drill program will be 10,000m, so I suspect she is following Quantecs recommendations on where and how deep to drill. In this drill plan( I will post the drill diagram again at the end of this post) it shows the first priority targets scattered all over the property. To me, this is very important for a couple of reasons, if this drill plan is followed .
1)these drill holes (the needle shapes with red heads) are going into the anomalies and anomalous structures. So, it looks like one drill hole per impressive anomolous structure. These structures are scattered over an area of approx 1km x 6km, and if all hit, it will prove an awful lot of gold over a real large area in just 10,000m of drilling. So, instead of just focusing on the anomaly and infill drill that, the company will be proving up the entire property at the quickest rate possible. Some may say that you have to do infill drilling on all these targets, I disagree, we only have to show they are gold bearing for now.
2) By drilling the Quantec responses, it will only add more validity to the Quantec if these are gold bearing (which I beleive 100% by all the DD we have done on this property). Having said that, a suitor will recognize this as well and they may not wait for all drilling to get completed before they make a bid. If we have 5 holes drilled that confirms the Quantec by 100% hits, you dont have to do much more drilling to tell you the other targets contain gold, the surface samples will tell you that they do.
3) If there comes such a time that we have completed the phase 1 drill program and no offer comes, do we move onto phase 2 drilling? I am guessing not! If this first drilling of 26 holes is scattered over the property and have proven gold in every one of them, there is no sense in doing more drilling IMO. The rest of the calculations can be done by pen and paper with the aid of the geophysics. If all these targets contain gold, you are up in the 100,s million ounces of gold, if you have that much, whats the sense of trying to prove exactly how many ounces you have? It would be a waste of time. When you get up to that high of numbers, is there really any difference between having 100 million ounces or having 125 million ounces? The majors have recently been making aqusitions where they are paying for more than what is proven and have been quoted as saying there is more gold there than what is proven on these aqusitions. IMO, we will get an offer before phase 1 drilling is completed. IMO, we will continue to finish the phase 1 drill program for confirmation purposes and strengthen our value.
Final thought, we will get an offer without having to prove up resource, we only have to show the gold is wide spread and of economical value, the ongoing trenching and drill program will do this.