I transcribed John Kaiser’s excellent interview from Discovery Watch with John Kaiser, September 25th 2018, about Beta Hunt and its potential: «Well that was an extremely dramatic move on Monday when it put out the news release that it had encountered coarse gold on level 14 and the implication was that it had extended the strike of the structure post Fathers Day vein from 20 m to 180 m, a substantial increase and based on the level it implies at least a 25 m up dip extent. Now the controversy about the Beta Hunt project in the Kambalda district of Australia is that they have run into these specimen stone pieces of rock, these golden boulders that are running 10,000 to 20,000 oz per ton equivalent and these are those sorts of things that you find once in a while and put in a museum because they are worth more that way, but they are actually in the business of mining. They have been chasing considerably lower grade material and when they encountered this higher grade system it confirmed a model that that they have been developing about there being a different structural control for the gold mineralization within the Lunnon Basalt beneath the Kambalda nickel deposits which sits right at the interface between the komatiite and lava flows in the older basalts [..] historically such boulders or small zones have been found in association with the nickel deposits and there has been gold known to be in the basalts and it has been chased in the past. In fact it never has been particularly interesting, but in this particular property the Beta Hunt there is a fold that has happened, they call it the Kambalda Dome which has folded the basalt and within it there is a pyritic shale horizon not very thick maybe a couple of metres which of course has also been folded and they have a property that sort of runs north west, south east that tracks the axis of this fold and so it has two flanks and they’ve observed that there are at least four sort of north west, south east shear zones that run through this, which have on the left side dropped it down, on the right side lifted up and unlike a fault which actually breaks the rock and moves it, a shear twists it and allows all these smaller little splay veins to evolve. When fluids come charging through this, it finds up, nicely prepared host rock where it can drop itself up but where this shear intersects with the pyritic shale horizon that is where there are particularly receptive chemicals sponge and they have now developed this theory that anywhere where these shear structures pass through the pyritic shale there will be these bonanza zones of enrichment and not just a random one here or two. What they reported on Monday was that they have two dots, they found coarse visible gold at level 14 dot and if you connect these two dots and assume that yes this is that same specially receptive horizon, we’re talking about a blob of rock potentially 20,000 to 30,000 tons when you do the basic arithmetic and that is a lot more than a 100 tons which itself was going to yield 24,000 oz from what they predicted and that is a substantial amount of revenue. They will be getting all of that in the next while and it will help clean up there balance sheet, that has been in pretty poor shape, but if you take this 20,000 to 30,000 tons in this particular segment and obviously its not going to run 10,000 oz per ton like your boulder that is a half metre by half metre type size but what if it is down to an average of 10 oz per ton within this special zone, then you are talking about another 200,000 oz to 300,000 oz between these two dots and that is substantial. The mine is already in production and it is permitted, you don’t have to wait 3 to 5 years to get permission to mine this, they can just start chasing this. So that is great, you get a little blast of cash flow, this thing ends up paying for itself and making some extra money [..] if you believe this model of these structural special zones, they are talking about 5 to 10 kilometres of this sort of zone on their property through those four structures that straddle, that cut through the dome and because it has been folded, you can in some places, the pyritic shale horizon will be sub vertical or near vertical and that is why you get almost a 25 m up dip extent for this 2 m by 2 m zone so it is conceivable that if the fluid flow was within this whole area and simply created this high grade mineralization where this structural intersection between the shear and the pyritic shale occur, you are talking about 25 to 50 times what they have just announced on Monday. Conceivably this could be a 500,000 to 1,000,000 ton footprint of potential bonanza zones so that is what got the market all excited [..] you will not be able to demonstrate that the model is false until you put a fair amount of money into drilling off this system. Tracking with these shears where they intersect the pyritic shales and doing very close space drilling to find where these zones are and then driving the adits in to access that [..] I wouldn’t be surprised if we see a $50 million financing come in [..] in this case a drill will actually work in figuring out, structure geology will tell you where you are in the system, there will be alteration zones that you can track, start vectoring into the bonanza zones from. So when you put $50 million into the Beta Hunt Mine to track down these zones, well you end up with a scenario similar to Goldcorp with its Red Lake project, which of course itself was a dying fading mine when Rob McEwen took it on and eventually they started figuring out where an awful lot of gold piled up and then became a mechanical job of just chasing it down. We are not quite there yet with this story but there is evidence that this story is taking shape, it will take a while to kill it, probably at least a year [..] so the pullback in my view reflects the likelihood that there will be a substantial financing coming [..] cleaning all the old debts [..] this is the reason I think for the pullback. The next big milestone for this company, validating this is a major serious discovery will be the announcement of some sort of lawsuit perhaps by one of the parties that were supposedly going to buy this in the past year. The company has said that there are no plans to sell it, but until we see a lawsuit come out of the woodworks and claim we actually have a deal to sell it to us or something or other like that, when that happens, that will be validation that this is a serious story that has substantial upside legs and of course, in the back of the napkin example I gave, one can argue well you really exaggerated this and made it look good, but I don’t really understand the geometry of this system. The reality could even be much better and when you have a story like this when you cannot quantify the upside limit as you normally can with a metal exploration play, that’s where you can get a very long lift, even a bubble in the pricing of the stock, this is what you call S Curve market action. This is like a brand new discovery. It isn’t really a deposit that is in production where you can predict way in advance, what it is all going to play out and it is all a function of, well is the grade going to be what they predict and is the gold price going to be whatever it is that we base the economic decision and develop it on. This is a new discovery play pursuing a reinterpretation of a district in terms of what drove the gold and where did it end up concentrating».
https://www.youtube.com/watch?v=cxE45byy3sg&feature=youtu.be
