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Message: Re: my 5g estimation
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Jul 18, 2011 05:49PM

I interpreted your written responses as indicating that you thought a substantial amount of drilling would be necessary to prove up the property therefore I was assuming you meant the entire drill program of 52 holes (26 primary targets and 26 secondary targets as per the Paul Gray report, which by the way, consists of targets both inside and outside of the many anomalies on the property), would need to be completed before the property could be labelled as reasonably "proven".

Note I said the Quantec data "could" be extrapolated, but I don't know if that's valid or not. But you can be sure that if the first batch of holes line up with the Quantec survey, the validity of the Quantec survey will become very apparent. If you are a major and you want gold and profit, you may not want to wait several years for the property to become "more proven". Somewhere along the line a balance is struck between science (Quantec data) and proof (drill holes) in making a final decision about what the property holds....and ultimately who wants to step up with an offer.

There have been mines in the past (e.g. Arequipa Pierina) that were purchased off a handful of holes with no Quantec data or any other kind of survey data. Someone made an informed decision with the best information they had at that time to purchase that mine for a whole wad of dough.....and as it turns out it was a good business decision.

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