The Big Picture
posted on
Mar 04, 2008 06:41AM
Camino Rojo Mexico : In-situ - 4.0 million ounces gold; 68.32 million ounces of silver.
Just some rambling thoughts on the meaning of the latest assay results.
First I think the geometry of the deposit gets complicated from here. The fault that has been mapped by the company looks to be real, confirmed by surface sampling and drilling.
Just some possiblities; The Represa zone may be the decapitated "top" of the deposit, separated from its roots by this or other faults and others have noted from the Google Earth images that there are a number of other possible faults in the area. It is possible that the sulfide body may be found in a different location, although IP shows an chargeable anomaly beneath Represa. (Don Julio, where the mineralization was not found until 110 m could be this root, although a lack of base metal values is curious). Or the fault may have been a control in the formation of this deposit.
The only real question on the oxide cap at Represa is what lies to the east, the IP suggests more but we may be getting close to the eastern boundary from IP results. One thing that geologists do is to work up multiple working hypotheses and test each one and revise these "guesses" as the data comes in, it is an exciting process, not without some scary moments.
The "easy part" of this discovery may be over. Having said that, if any team could find hidden zones, it is this one. I liked the comment that we are trying to outline the limits of this deposit, not "promote" the stock price. This means that there will be more mixed results ahead. If the stock price falls everytime an new hole is drilled outside the deposit, then are we back to $2.00 SP or less? Hitting the sulfides should change all of this weakness. I think that because the geometry of deposits tends to be complex, hitting 800 m of sulfides on the first try at deep drilling will be extremely lucky. If we don't get lucky on the first try I am not bailing out, this is a future mine and numerous people have calculated multi-million ounce resource in the oxide cap that makes my stock woth more than the current share price. We may be in for a wild ride but I'm hanging on, too many good signs out there, in the ground.
I believe this will be a mine, how big and how many other deposits are close by is the driving question. My take is that the potential is great! We are all here to make money and there is some luck and skill at playing a stock to maximum advantage and profit. Not a seasoned investor, that why I'm here to learn from the rest of you.
Not investment advice.