The information on this Website is not reliable and not intended to provide tax, legal, or investment advice. Nothing contained on the Website shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@speculator@ocotilloredux ... ive never heard of kerrisdale capital until now "pardon my ignorance" i just googled, and seen they anouced that they shorted $NAK a couple days ago. Is this their MO ? Have you had past experiences with them personally ? Nice to see you on the board today
@ocotilloreduxInteresting dilemma though. Indicated will be 3-4 times the grade of inferred and the PFS will be based on indicated only since it is all that is bankable particularly if they push for an NYSE listing. This will steer the mine design towards mining and handling methods that will require extensive radiation shielding.
@ocotilloreduxDesign a mill for 20 mlb/year but operate at 15. The remaining 5 is for upside when inferred is converted or custom milling of PLS. The point being, all environmental approvals are in place for 20.
@bernardshaw@ocotilloredux. I tried to get my feeble mind around the dilemma regarding how many more pounds will come out in RE2. The basics are (1) Indicated can only come from where the drill density is 25m or thereabouts (2) The target for this drilling density was the A2HG as defined by RE1 (3) This targeting would have caused some of the A1 to have been infilled to 25m (4) the shells exhibited for late 2016 were two-three-four times larger volume than those used for RE1 (5) only one of the 7 holes used for RE1 A2HG had two separate HG intersections compared to 5 of the 35 to be used for RE2. (6) True width of the RE1 A2HG domain was 3.13m compared to 8+/-1 for the true width observed by plotting the drill holes (7) Average grade of the 35 holes is just marginally less than the 7 used for RE1. The punch line is I think we are in for a delightful electric shock bordering on orgasmic before the end of March.
@bernardshaw@ocotilloredux. I calculate Indicated grade at 10.5% and Inferred grade at 1.7%; the latter depends a lot on some higher grades in A3 and A1 lenses so is more or less a guess +/- 0.3%. I've done a lot of homework but can't accurately plot the drill holes because I don't have the downhole survey date..makes a big difference.
@EpsteinResearch@ocotilloredux, Sir, if as you say, much of the drilling was infill, meant to convert Inferred to Indicated, why would the overall grade fall in RE2 from the 2.63% in maiden resource? I mean, wouldn't some or a lot of the infill drilling done have been on higher grade zones? $NXE Thank you.
@ocotilloreduxThe key word is "much". In-fill does not necessarily change the grade of A2, in fact it should not. It just gives you more confidence. So the overall grade drops due to more A1, A3 in the mix using the same cut off assumptions as before.
@Allan@ocotilloredux, what do you think the cutoff grade would need to be with current uranium prices and let's say notch the uranium price up to $50 a pound what would it be? What is the sense of increasing resource if a lot of it wouldn't make it into the mine plans? Or do you think the 350 mlb has a realistic chance of being mined?
@ocotilloreduxRecall that the A2 high grade is not a discrete zone, it is the core of the zone with lower grades on either side. From a mining perspective the reserve cut off should likely be in the 0.2% range (start the show with 0.5% for payback) but the resource cut off may be 0.1%. So the resource cut-off grade plays a major role here in both pounds and grade.
@ocotilloredux@Allan That's a cut off. Average grades at that cut-off will likely be north of 2% with a healthly mix of high grade and low grade mining happening.
click to invite
@SlmjrI meant to ask you. What is your opinion on what uex is doing at Christie lake?
click to invite
@ocotilloredux@Slmjr I have only taken a brief look at it, not enough to pass judgement. I was not familiar with it until I realized it was the old PNC (Japanese) discovery at Yalowega Lake. Incredible fishing in that lake. We used to fly over their camp coming in for a landing at McArthur River in the mid-90's. I saw the mention of "unconformity style" which means it is likely water bearing so ground freezing is likely required. Basement hosted like Arrow or Eagle Point is much less hassle.
click to invite
@SlmjrGood to know thank-you. Never thought about the freezing. Maybe a fishing trip is in order then. Appreciate the response.
@ocotilloredux@slmjr I like Roger the CEO, we got along well when I worked at Cameco. Yalowega is a restricted lake. They let the natives in there about every 4 years to take out a load by netting below the ice in the winter, mostly whitefish, but the province was so worried about the miners cleaning this lake out we had to gate it off around 1997. They would not even allow us to fix up the road until we took Roy Romanow, the Premier at the time, into the lodge there about 1995. We got a mysterious fax the next week, can't recall from who, the local Conservation Officer I think, stating we had permission to upgrade the road. Roy was always in our back pocket since the province was our largest shareholder at the time but had to appear impartial.
click to invite
@ocotilloredux@bernardshaw Item 6) I kept a primitive model going up to RE1 using the longitudinal polygonal method, being a primitive mining engineer, and the true width of A2 high grade was much higher than the 3.13m you state. Off hand I would put it around 6-7m from RE1 but have not followed the intercepts since then. Dips flatten out with depth. My RE1 estimate using the longitudinal polygon method was 189 compared to 201. My 350 is pure spitballing since I did not keep the model up. I was golfing instead.
@SASKEXPRESSOf interest? Sure. But no one expects 3.2 million pounds out of Arrow per year. They're likely to be pulling 10 million plus pounds out of the A2 high grade. I don't have the time this minute to go back to his post from last fall but a nice summary of proposed mine for Arrow was put together and makes for good reading by @ocotilloredux
@ocotilloreduxNot sure if I understand you @SASKEXPRESS. I would design Arrow for 15 million pounds a year. Trust me, there is more info available on Arrow mineralization distribution than when I committed, as Chief Mine Engineer, to 18 million pounds a year at McArthur River and delivered the goods.
@SASKEXPRESS@ocotilloredux I was running around and in a rush but was responding to a comment from @Gamblor about high grade versus lower grade. Didn't mean for it to come off that I was responding to your commentary, which incidentally I always thoroughly enjoy.
@ocotilloredux@slmjr Romanow snored so badly he kept Alan Blakeney and the rest of us up that weekend. We put another six rooms on the lodge with good sound insulation the next summer. The lodge ended up making Cameco a lot of money since we used to fly customers in from all over the world and they would come in private jets, even from Japan, and sign major contracts after a day of fishing and 18 year old single malt scotch. We had the best chef in the province cooking dinner. I was the mine super at the time and I always got a laugh when at the morning production meeting with the crews I would ask for three fishing guides for the weekend. The hands would shoot up, but I was always blind to my best raisebore operators.
click to invite
@SlmjrHahaha I've always been amazed at what a day of fishing can do for people. It's amazing how few people in the world actually get an opportunity like that.
click to invite
@BruceWayneMight have got the name wrong but referring to @ocotilloredux posts from yesterday about total lbs being just under 400MM lbs
@ocotilloredux@mtlzoom Just off the top of my head, McArthur River strike length of mineralization is over 1.5 km, Eagle Point 2 km and Ace/Fay/Verna 4-5 km. Mineralization zones are patchy along those strike lengths for various reasons but it looks like Arrow is shaping up to be in the same leagues.
@ocotilloreduxGood to hear on the TC's and payables. They need to get rid of that 85% nonsense and be more like their copper cousins. Call it 95%. Also, they should push for higher silver payout and get indium on the table as payable where recovered.
@ocotilloreduxStandard is (or was!) 3 oz deduction and then 70% payable. Absolute highway robbery. That is why you need the lead along for the ride since the silver will report there where it is more like 1.5 oz deduction with 95% payable. Smelter terms are a key reason Rio Tinto and BHP abandoned the business.