A mineral resource estimate meeting current Brazilian standards was submitted to DNPM as part of
the Mining Plan and accepted. However, for the same reason that the VALE mineral resource
estimates (see discussion below) did not meet the NI 43-101 standard, this resource does not meet NI
43-101 requirements and cannot be published here.
Mineral deposits that contain pods of exceptionally high-grade material are always difficult to assess.
Geostatistical modelling by independent consultants Mining Associates Pty Ltd indicates that although
the Serra Pelada mineralization is not nuggety, and therefore on a broad scale the variances are
acceptable, in the high-grade areas the variance is largely due to extreme short scale geometric and
spatial variability. A consequence of this short scale geometric and grade variability is the significant
uncertainty with reporting of these extremely high-grade resources. The block sizes in these zones
must be reduced, probably to 7-10m blocks. The drilling by VALE was on 50m spaced lines. Colossus
has to date substantially closed the drill hole line spacing to 25m; however this is still too widelyspaced
to allow a resource estimate in a category better than “inferred” to be calculated.
Given the depth below surface, drill intersections spaced close enough to allow definition of block
sizes of 10m or less can only be achieved by accessing the mineralization from underground. This
would also facilitate drilling the flat to very shallow angle holes necessary to determine true
thicknesses in the steep to vertically dipping high-grade zone in the fold hinge.
more at: Sedar
Now do we spend more holes drilling the same deposit or spend the money on ramping up production and defining new Hinge Zones and thier general outline, and lenses within them, then follow up with a bulk sample?
From my understanding and experience as a miner I think they will follow these lenses to the point where the gold will pool, 007 is a strong indication of this and Goldcorp proof. You find a small area with exceptional high grade, and sometimes a larger pool. Goldcorp's
Red Lake mine is the first example of this - but quite unlikely to be the best. I am more interested in seeing $150 mil in the bank than a 43-101.
Conventional methods get you conventional results.
