Understanding mining announcements

[absolute1]

helllo, im not sure if this has been asked before, but i couldnt find it. If a mining companys say something like this in an announcement or prospectus:

1m @ 2.48 g/t AU

what exactly does it mean?

what would be an attractive number and what wouldn't?


in addition when in reports they grade holes e.g 0.90 (ppmAu) wat does that mean? and once again what would be an attractive number?

thanx in advance

 

[Joe Blow]

They probably won't answer all of your questions, but these threads are worth reading:

https://www.aussiestockforums.com/forums/showthread.php?t=9643
https://www.aussiestockforums.com/forums/showthread.php?t=9561
https://www.aussiestockforums.com/forums/showthread.php?t=16089

 

[gordon2007]

A shameless plug, if you want to buy any of the recommended books there probably is a link on this web sight where you can buy it from.imp:

 

[absolute1]

thanx for the replys and addition threads, they have helped me alot

 

[nunthewiser]

A handy tool for resources info

http://www.mineweb.co.za/mineweb/view/mineweb/en/page102055

http://www.miningandexploration.com.au/Companies/index.html


may not be what you need but handy nuntheless

 

[Sean K]

Depending on overall continuity, country, the type of deposit, depth, and what is around it....

1m @ 2g/t is crap.
10m @ 2g/t is good.
100m @ 2g/t is very good.

1m @ 10g/t is OK.
10m @ 10g/t is very good.
100m @ 10g/t is incredible.

I suggest going to a number of goldies recent announcements and compare drilling results to see the variations.

 

[absolute1]

i get the interestion and the g/t now, but how does depth affect it???

whats the difference if its found 100m down or 300 down?

 

[Sean K]

i get the interestion and the g/t now, but how does depth affect it???

whats the difference if its found 100m down or 300 down?

Open pit is more economical in regard to mining expenses. Easy to open pit down to 100m, then it starts getting more expensive. Anything under 500m is going to be more difficult. From what I've seen large resources 2m + shallow open pits at 2g/t are mineable. Underground at depth you need higher grades around 5 g/t ish perhaps all depending on size and complexity of the deposit. Lots of variables to consider and very difficult for us amateurs to make quality judgements about.

As a comparison, check PRU and AND and their deposits and valuation.

Size isn't always better.

It's usually quality that counts.

That's what I like to think anyway.

 

[absolute1]

thanx kennas, comparing recent gold companies really helped me out thanx

 

[So_Cynical]

i get the interestion and the g/t now, but how does depth affect it???

what's the difference if its found 100m down or 300 down?

1m @ 100g/t ~ 100 meters down hole means they have to move at least 100 meters of dirt/rock/etc to get at the 1 meter they want...which is alot easier and cheaper than moving 300 meters to get at the same 1m @ 100g/t ~ 300 meters down hole.