what constitutes a "world class gold deposit"?
posted on
Nov 30, 2014 09:23PM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
As you can see in the link below, some requirements for a mine to be classed as "world class". One of the most important factors is the grade of the ore from the vein material and host/surrounding rock. As you can read in this excerpt below, sitting on the border of being world class and just being a profitable shaft gold mine, is the "marginal grade of 4-6 g/t gold".
"Ore grade refers to the proportion of gold contained in the ore of a particular mine and is represented in grams per tonne (g/t). According to the World Gold Council4 (WGC), larger and better quality underground mines contain around 8 to 10g/t, with marginal underground mines have averages of around 4 to 6g/t."
If we do some quick math on the C-1 vein with an average near surface grade of one ounce per ton gold/33 g/t gold, a conservative average width of the vein being 15 cm; (but historic data suggests widening at depth with also a disseminated factor in the host rock, micro fractures of sulphide/gold which have splayed/branched off from main vein, which only adds to grade and economics of a mine and NOT INCLUDED in this rough assessment), I come up with 3.87 g/t gold over a minimum mining width of 1.3 meters. This is substantial on its own, whereas you can see that the 3.8 g/t gold almost falls into the "marginal" category of a world class gold mine. If you factor in the complements in brackets above, you fall very easily within the "marginal" category. If you employ the historical data from DEEPER on the C-1 Vein, you see the average grade of the vein jumping up to 2-3 ounces per gold. You merely have to double the "marginal " grade with each ounce that is added to the average grade of the vein; for example, 2 ounces per ton gold over a mining width of 1.3 meters now establishes a grade of 7.7 g/t gold, well within the category of "world class". To further, when you integrate the 3 ounces per ton gold that comes from deeper in the C-1 vein, you arrive at an established grade of 11.61 g/t ton gold, being at the extreme top end of the world class category, and even above, according to the article/information. If we employ the geophysics into the understanding of what is OUTSIDE of the vein and which is PART OF THE GOLD DEPOSITION, we then realize the huge potential that was intentionally downgraded by an unqualified person such as Robert Krause, one of our past directors.
To further the economics of the Tesoro, the average mining wages of Peru, are ~25% less than Canada,s, making any project in Peru, a little more economical to pursue. This becomes important in evaluation whereas mines in Canada are economical at certain gold grades and there are mines in Peru that will be economical at lower grades of Canada.
I will also make a quick statement on the excerpt below, from the same provided link.
"According to the World Gold Council, a majority of primary deposits have an oxidized skin8 of anywhere from a few inches to hundreds of feet thick. This oxidized state helps to break down the other minerals ensconcing the gold, making extraction much easier, especially when heap leaching methods are applied and followed up with carbon-based extraction, including inexpensive Carbon-in-leach and heap Carbon-in-pulp methods."
The above is importasntly pertinent to any economical evaluation of the Tesoro BECAUSE; we have a huge oxidized layer of 50-80 meters/ 150-240 feet.
Bottom line, Geologists have to come forward and speak their truth on the Tesoro to assist us investors in revealing the TRUTH.