The company recently started the weekly drilling update on their blog post. I’m really liking it. It is a great way to get a quick update on the drilling progress while we wait for the official assay results. The drilling update for week of May 23 is really good.
“Rig #1 continued drilling N019 located along the west slope in the northern part of the North Zone. The hole is approaching 800m in length and will likely conclude in the coming days.”
Now this is a monster hole. 800m of drilling is a deep hole. The company isn’t going to drill 800m if at 700m they didn’t find any mineralization. So you get a clue as to how deep the mineralization runs. We will have to wait for the assay results to really know the grade and how deep it runs.
Rig #3, located in Brasiles, concluded B006 at a depth of around 700 meters. Currently a downhole IP survey is being conducted. Earlier this week the crews put in the road to the next drill location and cleared an area for the required drill pad. B007 represents a significant step-out to the north-east from recent holes. The pad is located around 400 meters NE from B003.
Brasiles is a big exploration drilling. We have no idea what is there and exactly where it is. Having completed 6 holes now, the geological team should be getting some early understanding of the resource. The next hole being 400m NE of where they have drilled shows you how big this deposit is and management must be feeling the mineralization extends that far.
Ausenco will begin work on process design, mine design, tailings studies, infrastructure design which will be rolled into a 43-101 technical report toward the end of this year scheduled for publication in Q1 2023 and then possibly update that resource in Q2 after South Zone drilling is completed.
The company has hired a firm to start work on the 43-101. The timeline is Q1 ’23. This is less than 12 months away. Again, we should have a 43-101 report in less than a year. This shows you how far the company has come in its drilling program. Ignore the stock price. The stock price doesn’t equal drilling results. In the long term the stock price will reflect the drilling results but for the short term I just ignore even looking at the daily stock price.
The company is also going to be adding drill rig 4, 5, and 6 in months. I don’t recall where I saw this but they are coming every soon. I think we are adding a rig every month, till we get to 6. So more holes will be drilling and we will likely see a pick up in the pace of assay results.
Overall the company is executing its drilling plan. We have to wait to see the results but the company is progressing really well. The stock price is painful right now but if the company executes and delivers on the timeline, we will do really well.