Confluence of Structure
posted on
Apr 22, 2010 10:20PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Back of the napkin:
"The total area covered by the measured, indicated and inferred mineral resources estimate for the 007 zone is a strike length of 300 feet (92 metres) and a vertical extent of 1,400 feet (427 metres) between 100 feet (30 metres) and 1,500 feet (457 metres) of depth from surface. The zone is open up and down dip and along strike to the west. Exploration drilling will continue throughout the first half of 2010"
007 zone
Indicated mineral resources 74,960 2.58 (88.4) 193,695
Inferred mineral resources 293,740 1.78 (61.0) 522,857
716,552
From today's release:
"These zones, collectively known as RL East display remarkable widths as well as grade and are hosted within
structures that trend upwards toward the high grade 007 zone near surface."
and
"The RL East and 98 zones are located along east-west shear structures that obliquely cross cut the Rice Lake
mine host unit and extend into the hanging wall volcanic rocks that host the new near surface zones (Hinge, 007,
L13 and Cohiba). The RL East zone is located approximately 150 meters (500 feet) to the east of the high grade
“98” vein area currently under development and is beyond the recently discovered 98FW1 and FW2 zones (see
press release dated January 20, 2010). The above drill holes are the first results from additional holes that were
lengthened or initiated from new drill stations in order to reach the RL East area. Holes that appear out of sequence
or do not appear are not yet drilled, logged, or were not long enough to reach RL East.
The main “98” vein above the 28th level (4500 ft below surface) has been developed to over 150 meters (500 feet)
in length, has a known dip length of over 600 meters (2000 feet) and is open above the 26th level (4200 ft below
surface). Mining is now underway in numerous stopes within this vein above the 29th and 28th levels. The wide
spacing and correlation of drill holes within the 98FW and RL East zones are beginning to display similar dimensions
as the main 98 vein described above. The numerous new veins being discovered to the southeast and in
the footwall of the “98” vein are in previously unexplored areas as there has been no access to this ground in the
past."
So, the deep zones that line up with the 007 zone are at least another 3000 feet of
similar structure.
Based on Dale's comments from Zurich "gives you the idea of potential here" at the 14 minute mark
and the "do the math comment" at the 14:20 mark and "i'd be surprised if they didn't go deep" at the
16 minute mark,
http://www.gowebcasting.com/events/denver-gold-group/2010/04/15/san-gold-corporation/play/stream/299
I would say there is at least another 1.5 million ounces(2 x 007 MI) between the 98 vein level and
the 1500 ft level.
That's 6 year's of mine life at 250,000 ounces per year dogging it with a pick, shovel and wheel barrow.
Just imagine if they decided to strictly run 007 at 1850tpd instead of mixing it with the low grade.