Re: Said at a 2005 Edmonton meeting?
in response to
by
posted on
Jun 08, 2013 03:20PM
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
Sliforever, perhaps this will help?
"The Company has developed the following plan for the continued exploration and advancement of the Tesoro Gold Project:
Existing Mineral Resource
The most recent 43-101 report indicates an inferred mineral resource at the C1 Vein of 4,290 tonnes grading 1.04 oz/t gold with a total gold content of 4,460 ounces (based on a conservative figure of 100 meters for the length and 100 meters for depth). The Company intends to extract this block of material and ship to the nearby milling facility of Dynacor Gold Mines Inc. for processing."
Sliforever, as you can see by the above, this property is quite advanced and perhaps should be in the brownfield category upon any reference. The very fact that ore is mined, cleary shows the vitality of the property.
Agreed with your statement that drilling rarely ever shows the true value of ore, but in our case, you are overlooking the fact of the many bulk samples and development material that clearly shows feasability. These are to extent, mining grades and should not be confused with "small samples". There are many auriferous veins found in this world that are never mined, some with grades for example around 20 g/t. They are not mined because of the economics and the waste to ore ratio is too low. On the Tesoro, for comparison, the ratio can be determined quite simply when historic data shows mineralization of gold present in many geological structures other than just VEINS. Its these other mineralized structures that add value to the non vein ore and in some cases are mined by themselves on the basis of volume, which can make these types of mineralization very profitable, an example being, the Carlin type gold deposits.
http://en.wikipedia.org/wiki/Carlin%E2%80%93type_gold_deposit
We know that there is silicious mineralization as well as the important carbonate component, which are constituents in Carlin like deposits and this is documented in this news release from SLI;
"Recent trenching and sampling has shown that there is a subtle and previously unappreciated halo of carbonate alteration up to 40 meters wide associated with the low-resistivity geophysical anomaly adjacent to the C5 Vein at Zona Canchete and adjacent to the A4 Vein at Zona Central, which are separated by a distance of ±700 meters. Halos of carbonate alteration are common in mesothermal gold veins (Atlas of Alteration, G.AC., 1996). Samples of the carbonate-alteration zone (35 three-meter-long channel samples collected to date) are all gold-anomalous (>50 ppb gold), and include intervals (for example, 9 meters of >500 ppb) that are higher grade than the cut-off grade of oxide ore at Yanacocha (Newmont, 2008 year-end annual report)."
http://steliasmines.com/?p=593
The Tesoro is unique and although comparible to other deposits, it carries a wide spectrum of geological events and constituents, in which traditional geological applications cannot be readily applied. The above portion of a news release, is only one of several and perhaps many areas defined on the Tesoro, each apparently with slightly different characteristics, nevertheless, all esentially the same, implications of considerable disseminated gold.
These disseminated gold areas are not profitable themselves at gold prices of around $600 an ounce, but as the POG rises, it brings online uneconomical gold in which some mines are operating at an average grade of .33 g/t gold and less. Other mines that have high enough values of secondary minerals, such as copper, some antimony, are able to take lower grades yet because of the value in the by products.
If this was just a vein property, I would have had definite reserves on what I invested, but whereas there are many mineralized components of this deposit, it suggests great possibility of open pit mining with indications that the volume of disseminated gold may support this very well, and which is one of the cheapest methods of mining today, and make these types of projects more attractive to potential buyers. Where there is absence of any considerable disseminated gold in the drill assays,or by product minerals I might add, this makes it very confusing to try and understand the dynamics of the property, where the Titan shows clearly the areas of dissemination depicted in the historic news releases, but when these same signature areas are drilled, there seems to be an absence of mineralization. There is documentation that the structures on the Tesoro are steep dipping and run almost verticle, further evidence of this is found in some of Dynacors news releases, whereas they are at a lower elevation of approx 1500 meters lower, and the mineralized shear zones are present at that stratum of elevation.
Sorry for rambling, I could go on and on...