Post by pasacancha on Oct 17, 2008 9:37:09 GMT -5
I had posted this a little while ago on Agoracom forum but will add a few thoughts
Things always seem easier to understand when you can picture it so I hope this will help everyone understand the Aguila better
I’ve attached a recent map provided by the company and I sketched in the old Aguila pit (small circle) and our values to date including the RTZ holes.
On some computers it will be easier if you download the picture first and then open it with an image viewer
www.filebrella.com/download/6220bca0
I drew an elliptical (shaded area) shape over what I found could potentially be graded a minimum 0.5% and up as high as 1.316%
I calculated the area of this elliptical shape to be approximately:
750m by 350m = 206,167m2
206,167m2 x 500m depth x 2.7 = 280 million tones grading over 0.5% (lets give it an average of 0.8%)
Optimistically speaking 280m tones of 0.8% at $2.50Cu equates to over $5 share price (buy out)
Keep in mind that the outer limits of the pit could be expanded to lower grades of down to approximately 0.25% (depending on metal prices and grade) break even or better and giving low strip ratio. At the AGM Cary mentioned 0.2% was considered a break off point
Ongoing drilling will continue to develop this figure
Cary said there are other porphyry targets near the agauila where field work is under way. The Aguila east has also had good surface grades and is also expected to be explored further
For now I strongly believe we are safe to count on an economical deposit of minimum 200 million tonnes of rock on Aguila with the potential of adding another 200-300 million tonnes from future drilling on surrounding porphyry targets. Therefore 400-500 million Tonnes is not out of the question. ;D
Things always seem easier to understand when you can picture it so I hope this will help everyone understand the Aguila better
I’ve attached a recent map provided by the company and I sketched in the old Aguila pit (small circle) and our values to date including the RTZ holes.
On some computers it will be easier if you download the picture first and then open it with an image viewer
www.filebrella.com/download/6220bca0
I drew an elliptical (shaded area) shape over what I found could potentially be graded a minimum 0.5% and up as high as 1.316%
I calculated the area of this elliptical shape to be approximately:
750m by 350m = 206,167m2
206,167m2 x 500m depth x 2.7 = 280 million tones grading over 0.5% (lets give it an average of 0.8%)
Optimistically speaking 280m tones of 0.8% at $2.50Cu equates to over $5 share price (buy out)
Keep in mind that the outer limits of the pit could be expanded to lower grades of down to approximately 0.25% (depending on metal prices and grade) break even or better and giving low strip ratio. At the AGM Cary mentioned 0.2% was considered a break off point
Ongoing drilling will continue to develop this figure
Cary said there are other porphyry targets near the agauila where field work is under way. The Aguila east has also had good surface grades and is also expected to be explored further
For now I strongly believe we are safe to count on an economical deposit of minimum 200 million tonnes of rock on Aguila with the potential of adding another 200-300 million tonnes from future drilling on surrounding porphyry targets. Therefore 400-500 million Tonnes is not out of the question. ;D