Re: questions
in response to
by
posted on
Nov 19, 2010 09:21AM
New Discovery Resulting in a 20KM Mineralized Gold Belt
Welcome to the GNH hub Goldmining,
You will be hard pressed to find a better group of investors who share their dd with their investor peers.
The biggest challenge for this company in the next several months will be the generation of a resource estimate that reflects the true potential of this property. Many of us here feel we are well ahead of the market in terms of our understanding of this geologic system and its genesis, but at the risk of making you nauseus (your words not mine) I won't go into the potential of the deposit. If we are correct, we will do very very well -if not we have gone into this with our eyes wide open. I will say that if you only invest in companies that Sprott et al. are into, then this play may not be for you.....yet. However, if and when the big boys become interested in GNH I feel it will be difficult/impossible to get GNH shares at these current prices.
So is a difficult-to-characterize deposit a weakness? I suppose that depends on how patient (sorry to use the P word here guys) you are and how much faith you have in your own dd and the geology team trying to prove it up.
As I see it we need to reach several milestones to prove up this deposit
1) dozens evenly spaced drill holes aimed at extending and/or filling in known mineralized zones at Timmins1/2/88 - high probablility of success IMO
2) an estimation of the volume of the mineralized envelope for the above characterized zones of the Timmins1/2/88 deposit - high probability of success based on completion of step 1) IMO
3) determination of the cutoff grade for the mineralized envelope for known and extended zones of the Timmins1/2/88 deposit (this may come from drill data alone or a combination of drill data and bulk sampling)- high probability of success at baseline drill grades (minimum resource size) but harder to predict how much bulk sampling may add to grade estimators IMO
THe exploration team is working tirelessly to complete all of these goals within the next several months. The anticipated addition of another drill will certainly hasten the process. If they are successful in doing so... well you can finish the sentence yourself.
Good luck with your dd and investment choices.
Scott