Similar to our 1,000 tonne bulk sample at Trench 1 in 2017 (results here http://www.inventusmining.com/s/Inventus_Jan3.pdf), the first step in the next phase of bulk sampling at 007 is to strip and diamond drill the area on a 5x5 m grid. The drill arrived today and should be operational tomorrow. This will enable us to define exactly where the eventual bulk sample will be taken, and give us an indication of the gold grade.
It has been a while since we provided an update here on the blog. We have been very busy working on Pardo and Sudbury 2.0, and we have a few near-term milestones:
1. New 43-101 Technical Report on Pardo is in the final stages of being competed. We look forward to getting this filed, potentially later this week.
2. The final closure plan for our 50kt bulk sample was officially submitted July 24th. There is approximately 45 day period for review.
3. Sudbury 2.0 prospecting, mapping, and sampling has been going well, and we have identified targets for geophysics to zero in on potential drill targets.
News release will update on Pardo bulk sample permitting, ore sorting, 43-101. Plus introduce an exciting new project we're kicking off. Here is a hint:
Interesting talk about conglomerate hosted gold deposits by Mike Cunningham from the recent RIU explorers conference. He mentions our 1,000 t bulk sample at the 12:15 minute mark. https://www.na.srk.com/en/publication/ap-pilbaras-conglomerate-gold
Download the slides here: https://www.srk.com/sites/default/files/file/MCunningham_ConglomerateGoldExplorationAndSampling_2018.pdf
On February 15th the ore sorting was conducted at the STEINERT facility in Kentucky, USA.
This work was initiated as a follow up on previous test work that was very favourable. Initial test work indicated that 65% of the material could be removed as waste. The remaining 35% of the material contained 91% of the gold for an upgrade ratio of 160% (see press release April 5th 2017).
Theoretically, if we had sorted our 1,000-tonne bulk sample with a head grade of 4.2 gpt (see press release January 3rd, 2018) we would have only milled 345 tonnes (35% of 985 tonnes) with a total gold content of 121.7 Troy ounces (91% of 133.8 troy ounces) for a head grade of 10.8 gpt.
The potential to sort the mineralized conglomerate ore at Pardo is a game changer for the project. It would significantly reduce capital costs in a mining scenario and could potentially lower the cutoff grade of a future resource.
These are screen captures from the Pardo Leapfrog 3D model.
The interpreted extent of the mineralized conglomerate defined by drilling is displayed above in red. The mineralized conglomerate is open to the north west, east and south.
Plan view of the mineralized conglomerate with overlain aerial photo. Topography is rolling to flat with no major water bodies.
The extent and interpolated grade thickness of the mineralized conglomerate.
The Trench 1 bulk sample returned 4.2 gpt over 2.54 metres demonstrating a grade thickness (GT) of 10.66. The drilling conducted prior to the bulk sample ranged from 0.42 GT to 10.43 GT with an average of 3.37 GT.
Any one drill hole intersecting the mineralized conglomerate is not adequate to determine the grade. The highest grade thickness observed in drilling occurs where the highest density of drill holes are located.
Cross section of the grade thickness with aerial photo between 007 and Eastern Reef showing it is flat lying and near to surface.
Extent and grade thickness of the mineralized conglomerate with overlain aerial photo.
The Pardo Leapfrog 3D model is now available.
The data files can be downloaded here
The free Leapfrog Viewer can be downloaded here. (Leapfrog 3D is only compatible with Windows).
Please read the "IVS Pardo 3D Model - Read Me" document for instructions and information on the files.
For any additional inquires please email: email@example.com
Q: “What are the next bulk sample targets on the property? How much will it cost? When will that program commence?”
A: Our idea is to bulk sample 10,000 tonnes (~1/10th of the total in our prospective permit) in the next program. The areas to focus on would be 007, Trench 1 and Eastern Reef. Hopefully the cost is negative (wink). The next sampling program requires an approved closure plan, which is a major permit provided by the government. We’ll keep everyone updated on our progress.
Q: “You announced your results and your opinion of encouragement and that more bulk sampling should be slated...........this is all good...................but there was no commentary with respect to the larger context of the project......as how significant this result is to the bigger picture........was it representative of all of the surface expressions on the property.....how big of blanket these beds cover and average thickness.....some thing for a new investor to latch on to....... the scope of the project with some simple arithmetic !
A: Providing broad generalizations with grades, weights or volumes pretty quickly started looking like a pseudo resource statement…and that would get us in trouble. We are working on an updated NI 43-101 Technical Report (see Survey Response #1).
Investors can do simple arithmetic with information provided in our presentation http://www.inventusmining.com/presentations/ and our latest news releases.
Q: “In the message boards, I've read opinions of people not wanting to hold over the winter...or anxious for the Spring to see an appreciation in the share price.”
A: Not sure why the value of IVS stock would be tied to the seasons, we don’t have a seasonal exploration news flow like some companies. January to April is a very active period for mining conferences and promotion.
Q: “Putting any "nuggety" effect of drill results aside, does the company feel that we may be able to expect this kind of an improvement in grades for future bulk sampling campaigns? Is it generally accepted within the industry that bulk samples provide better results than drilling?”
A: It’s difficult to say with one data point if the relationship will hold true in other areas of the property. Our working hypothesis is that all the conglomerates will behave in a similar way. The first bulk sample strongly supports our hypothesis.
Q: “It would also help to know what the total cost per ounce for the bulk sample was, taking into account factors that may be different between full scale mining vs bulk sampling.”
A: The cost of bulk sampling is almost always much higher than you would experience in a commercial operation. In our case we will almost break even on the first 1,000 t, which is an accomplishment we're very pleased about.
We received a number of responses to our survey (Thank-you). I'm going to tackle them over a few days. Here is the first thing someone wrote in:
“I was quite pleased with the results and look forward to hearing some guidance on what will happen next...”
What happens next:
1. Within a week, we will be making the 3D Leapfrog model of Pardo available on the website. Anyone who downloads the Free Viewer will be able to look at it. Pro-users will be able to do much more…
2. We will be submitting a permit application to conduct a 100x larger bulk sample / trial mining. The environmental baseline work for this permit was started last summer, and we are able to submit it the government soon.
3. We will be working harder on investor outreach and promotion.
4. We will be publishing an updated 43-101 technical report on Pardo in H1 2018. He hope to include information on conceptual target size, and current resource tonnage.
5. We will be investigating ways to implement ore sorting in the near future, which we think is a potential game changer for the project.
“I am extremely disappointed as a long term shareholder learning of the constant selling of shares on the open market from one of our large investors Endurance Gold Corp...”
We get a surprising number of calls and emails to complain about Endurance. Don't call us, call them!
Despite the bulk sample results being very positive (in our opinion), judging from the share price some investors seem to have the opposite view. All the feedback we’ve received from investors and analysts has been positive. No one has written to complain about how we screwed up or the results were below their expectations. So this is your invitation to complain, if you are displeased with the bulk sample results or you think you know why others might be, please write to us at: firstname.lastname@example.org. We will try and address your concerns right here on the Blog.
Milling of the bulk sample went reasonably smoothly. Many thanks to the operators at the Back Fox mill for working through a few struggles to get it done.
Today is the day! Bulk sample being run through Black Fox the mill today.
After an unanticipated 4-week delay, while we worked with the environmental regulators responsible for the Black Fox Mill, I'm pleased to say we received the all clear on Nov 17. The Pardo Bulk Sample is in line to be processed sometime in December. We will provide more specific timing when it's available.
Shipments of bulk sample material from Pardo to McEwen Mining's Black Fox-Stock Mill (located near Timmins) have started.