How to interpret mining reports

[AussieBoy]

http://asx.com.au/asxpdf/20130430/pdf/42fk2m398w249c.pdf

Take this one from Adelaide Resources for example (which led to a large 100+% spike in the share price).

Now, I don't come from any geology/mining engineering background at all. But, how do you interpret mining reports? Like, regarding the depth, when it says in the report:

"20 metres at 4.20% copper and 0.27g/t gold
45 metres at 1.55% copper and 1.81g/t gold"

How do you know if it's good or not? Like what g/t, % copper and number of metres are you looking for?

 

[DJG]

Take this with a grain of salt, I know nothing about the reports and often wondered it.
However, I'm somewhat certain of course the shallower, the better (less expensive to extract.

I don't know what the % refers to, % of a tonne, bucket, who knows...

1.2 g/t gold - I'd imagine is 1.2grams of gold extracted per ton

Again, I'm at best taking a stab at it.
Interested to learn anyway

 

[burglar]

...
Like what g/t, % copper and number of metres are you looking for?

Generally speaking, open cut mining is seriously less costly than underground mining.
I would say, less than 50 metres depth, is favourable.

Sometimes, if the ore continues down, the depth could be 0.97 kilometres.
In this example, Bingham_Canyon_Mine, the grade is not crash hot, but there is a lot.
Read more:

The Super Pit started out as several smaller mines.
Super_Pit_gold_mine:

...
"20 metres at 4.20% copper and 0.27g/t gold
45 metres at 1.55% copper and 1.81g/t gold" ...

That which you have quoted here appears to be intervals or thickness of mineralisation.
You need to find the depth as well.
As exploration progresses, the drilling pattern is used to determine how large an area is mineralised.
Three holes is often taken by punters to assume continuity.
Then speculation starts.
When the last hole falls off the edge, or "delineates the deposit", the speculation dies.
Drilling continues after the size is found. Infill drilling is used to determine the JORC resource.

There's a start for you, anyhoo!!

 

[Bushman]

http://asx.com.au/asxpdf/20130430/pdf/42fk2m398w249c.pdf

Take this one from Adelaide Resources for example (which led to a large 100+% spike in the share price).

Now, I don't come from any geology/mining engineering background at all. But, how do you interpret mining reports? Like, regarding the depth, when it says in the report:

"20 metres at 4.20% copper and 0.27g/t gold
45 metres at 1.55% copper and 1.81g/t gold"

How do you know if it's good or not? Like what g/t, % copper and number of metres are you looking for?

Hey mate - there used to be a geologists thread ... I will see if I can find it and bump it up. it was a fount of info.

In terms of year questions, say for the first time it means that they found a 20m intersection of mineralisation; the average copper grade for this was 4.2% cu and for the gold it was 0.27 g/t.

In terms of 'is it good', this is a complex question. You can have small, high grade deposits (like SFR's DeGrussa) which are economic due to the grades. Or you can massive lower grade systems such as Cadia which stac-up because the grades are consistent across large volumes so you can use an open pit operation.

In terms of early stage explorers like ADN, the market will generally 'pay' for cu exploration hits above 1% and at decent intervals (say +10m). But note that sentiment amongst the speccies are terrible at the moment so expect price spikes to be met by heavy selling. There is a 'cash crunch' amongst the juniors and, unlike 2008, Chinese growth is slowing.

Chrs