Re: The Big Picture
in response to
by
posted on
Mar 04, 2008 09:41AM
Camino Rojo Mexico : In-situ - 4.0 million ounces gold; 68.32 million ounces of silver.
Thank you geoinvestor. Not taking anything personal!! I got exactly what I wanted in comments from you. My point was only to suggest that as we continue to define the boundary of the deposit there will be some barren intervals and not to panic. There will be some great in-fill drilling no doubt!
I agree that the fault appears vertical and that it would take a very shallow angled fault for Represa to be the decapitated top of the sulfide body, but it is just a working hypothesis, maybe a bad one.
The only reason I speculated that we may be getting close to the eastern boundary of Represa from IP is because it seems that it has done a good job of outlining other parts of the deposit, i.e. west and northwest and closely follows the outline of the surface anomaly. Even if the eastern boundary is close to the current line of drilling, that is not a bad thing, from what I saw in the Goldcorp study Penasquito is a combo of 2 diatremes that have a combined strike length of 1000 m, we are half way there with the unexplored Don Julio in close proximity to Represa, that is exciting, plus we have better shallow grades which is also exciting. We have not heard about the values below 200 m, and looking at Penasquito the higher grades were at depth, that is exciting!
My speculation about the share price is my reflection on what has happened in the last 2 days, we have some results that contain low grades (for Represa) and some barren intercepts (CR 17, 18, 19) and we lose value. More barren intercepts to come... which is expected but will the SP go down everytime? I am inexperienced in the ways of investing and just posing the question.
The geometry of Penasquito is pretty straight forward, but the gold zone does dip and is not vertical. I will not bail if we don't hit 800m of sulfide mineral with good gold grades the first time out of the blocks! I am long, not short on this company.... holding since 1980 might give you an indication of how "long" I am.
I will be more careful on my future posts because I don't want to spoil the party, that is why I did not mention the northern property boundary and drilling in CR 13 earlier, it is something I have thinking about for a while. I don't know the Mexican Mining Law to know what happens if the deposit plunges under another holding, which is possible and needs to be included in one's analysis, certainly any pit may need the room to the north to get to the values indicated by CR 13.
So I guess I am saying this, I think that we have a mine, I think the current SP is under-valued in light of this, I think that there is a sulfide body at depth, that is where gossans come from, I will not turn tail and run on some perceived bad drill assays, we can expect them, the geometry of deposits can be complicated and I will not run if the results are initially less than Penasquito, as I stated one has to be pretty lucky to get an idea of what is really in the subsurface from a couple of DD holes and I have CONFIDENCE that this company WILL find what ever is out there!!!
Long, Long, Long, just thinking out loud and don't expect anyone to make a investment decision based on my speculations. I do hope to learn from this board and will be more careful about what I write in the future.
Happy to be here!